It’s weird to me. I recently applied for a bunch of rentals and my lack of credit has been the main thing holding me back. I have resolved to get a secured credit card but like how tf do people usually build credit anyway? I got denied by several other credit cards.
I also tried to apply for a loan earlier last year for a tow behind camper and even with 10k down on a 16k camper they said no. It’s like they can’t comprehend what I mean when I said I don’t have a credit score…it’s not a bad credit score….it’s that I have literally zero history. I’ve paid for everything in full including my car and the travel trailer that I ended up buying and yet I’m punished for it.
Anyways, how do most people get their name in the system? Is it always with a secured credit card?
In: Economics
In some cases parents will add children as authorized users on a credit card, then destroy the card. If the parent is good with money, their child starts with an account that’s been open for as long as they’ve been alive and has never missed a payment. Instant advantage.
Student Debt is another way young people can build credit. Consistent payments result in a good credit score.
And lastly, as you’ve suggested, secured credit cards are another common way people start building credit.
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