If you have no credit because you always pay cash, what's the best way to establish credit?

You can get a secured credit card. Its like a credit card that you pre pay. For example you would open this account with like a bank. You give them 200$ and they give you a credit card with a 200$ limit. You use it like a normal card just make sure you pay it each month. This will improve your credit score.

I am a mortgage broker and to a certain extent, that's true. Though I don't know what your current credit rating is, please not that this a generalization and may or may not apply to your situation.

Your choices for creating good credit history, in many cases, come at the cost of higher interest rates. This is done based on how they view you as a risk. Generally, with NO history, you will not get the best rate, nor will you get the worst. Check with rent-to-own companies (I know, it sucks), but make SURE that they report to the credit bureaus! Not just when you miss a payment, but when you are on time - all instances. The KEY is to establish a min. of a 12 month history, ideally 24 months.

Check on the net, ask your local bank and even friends that you trust for possible avenues.

Note - here's something few people know; do NOT maintain a balance on a revolving credit accoun that exceeds 65% of your limit. I could tell you why, but it would take up too much space here. But that is the magic number. Also, make sure that there is activity on the account; an open account with no activity is just about worthless. Why? They want to see your pay history.

Hope this helps.

Not that I've heard. Personally, I would get a credit card and buy something small and when the bill comes in, pay it before it is due. This is how you build good credit. If you pay hydro, phone, cable, or have a lease or loan, how often these are paid on time will also effect your credit score. The best answer is to call the Credit Bureaus and ask them how to do it and possible find out what your score is. Just remember to apply for only one card, because each time you apply, it will show on your credit report.

Try a Discover Card. Charge everything you normally would pay cash for. DO NOT GO NUTS WITH THE CARD. Pay off the balance in FULL, every month. That way, you have NO interest, and up to 5% cash back while you gain credit points. BUT IF YOU CAN'T CONTROL YOURSELF, YOU WILL BE S@##@ED.

Apply for a credit card!!! If you cant get one.. Apply for a secured one thru your local bank.. That means you give your bank like $300 and thats the limit on your card.. DONT max it.. use it to fill your tank or to buy something of smaller value.. THEN, pay the whole bill once you've rcv'd the statement in the mail. DO NOT pay only the minimum.. This will build your credit.. Im in finance.. It works!

Don't get a credit card. You will regret it. Go to a loan company, borrow like 300 or something. Keep paying on it until it is gone. Don't pay it off completely. Make the payments. This will start your credit.

You guys aren't reading.. he has always paid cash.. he has no credit history. It is going to be VERY difficult for you to get a credit card with no credit history. A secured card is the best route and possibly your ONLY route. You can do so with as little as 300 down. You can try Target but you are almost certain to get a denial because they have nothing to show you are reliable.

This is one of the most common questions on this board.

How do I build/establish credit?

First off you need to be educated about how credit works in the U.S. Every credit decision a lender makes is driven by FICO credit scores. You can go to www.myfico.com and look in the Credit Education section to learn how FICO credit scores are determined. To build your credit you have to place positive credit items on your file that will report positively for 6-12 months minimum. If you want your credit to be in the Excellent category (FICO score 750+) then your goal should be to have 3-6 revolving accounts(dept. store, gas cards, Visa. etc.) WITH NEAR ZERO BALANCES and 1-2 installment loans(car, mortgage) that are reporting positively.

I would start out with a Bank of America or Wells Fargo secured Visa card. Both banks have great programs with low annual fees, low starting amounts ($300.00) and no junk fees. After 12 months of positive on time payments you will graduate to an unsecured status. Then you will probably be approved for other cards such as dept. store and gas cards.

Good Luck

in order to create a solid credit score you would have to have some sort of mortgage on a house, possibly something cheaper like a lease on a new car or even financing a new car.

but in order to get a good deal on a mortage or lease you need to start somewhere, the easiest would be to sign up for a credit card, most companies that are going to accept you are going to have high intrest rates and probably the easiest company to get a credit card from is from your bank... that is if they even offer a credit card.

if your a student i suggest you get a card that's for students, they usually offer a credit line of about $500.00 which is enough to get you started.

most companies, like american express, and citibank probably won't accept you right out from the start but your easiest bet would be like i said either a credit card from your bank or try looking up for one at visa.com

and you are better off paying the credit card bill off in full every month. so maybe charge like 50-100 a month and pay it off completly. you dont want to be paying off a credit card monthly because what happens is, if you get a credit card with a zero intrest rate for the first year, yeah every month you'll pay a minimum of 10 dollars for a 100 bill so in 10 months you would have paid it all off, but once the intrest rate comes in.. you might be paying a minimum of 20 a mont and it'll take like 150 dollars just to pay off a 100 bill.

Yes you can build your credit by getting a credit card with a low amount, buy small purchases and pay it off the next day. I had terrible credit and I did this to raise mine. If you are able to also the higher the purchase you pay off the faster it will work. Just make sure you do pay it right away. Otherwise just get small things.