I need to build my credit?

Question

I am 28 years old and never had any type of credit. But I want to build some credit. I applied for a capital one card and it got declined. I plan on applying for one through my bank and if that gets denied I plan to have the Secured one through capital one. As the rep form Capital one suggested that Someone told me it will hurt my score if I apply for more then 2 in a month to wait 30 days to apply again I get denied the one my bank offers. Only bills I have in my name are my medical bills. I have no rent or mortgage I only have to pay property taxes. I live with a family member as the house I live in was inherited and already paid so that’s why we only have to pay property taxes. I really do not want to apply for a store credit card as I heard they have high interest rates and not good for someone who has no credit. What are good ways to get credit if these 2 credit cards get denied? Would it be ok to apply for the 3rd one today if I get denied at the bank or should I wait a month if I get denied at the bank?

Update:

I have been working sicne 2003. I did not have a job for a year due to personal reasons but that was like 5 years ago.But since then I have been working since Sept 2009.

Anonymous · Accepted Answer

If you are not employed 12/18 months , that could be the reason you are being denied

StephenWeinstein · Answer

Stop applying, immediately.

Do not apply again for more than a year.

If you were denied by Capital One, then you will almost certainly be denied everywhere.

Meanwhile, every time you apply, you make it harder to get approved, ever.

It takes a whole year, without applying, just to undo the damage that you do by applying even once.

I don't know where Capital One came up with the crap about waiting just 30 days.  The only reason for them to want you to apply again after 30 days is that, if you keep applying every 30 days, no other bank will approve you, so you will have to come back to Capital One.

Don't apply for store cards; you can't get approved for them either.  They deny anyone who does not already have credit.

There are no good ways to get credit until you stop applying.  (There are also no bad ways.)  If your credit is so bad that even Capital One wouldn't approve you, then you certainly won't get approved with a record of applying so many times.

Go with the flow · Answer

You did not know that you never pay interest if you pay in full each month?
Statistically, those that pay in full each month, not only avoid interest, but hold those top credit scores.
Sounds like if you got a card, you would only pay the minimums.
And pay interest.  APR.  If so, never touch any form of plastic.
Ex:  If you get a store card, charge something you need once a year, and pay it in full when you get the bill in the mail.  No interest to pay (apr), and develops great credit.

Go for the secured card.
Hopefully you know that you may need $500 to open this account.
And make sure you replace the funds in full each month.   No games !!!
Wells Fargo and Cap One have good ones.

Bottom Line:  Never open credit unless you have your Savings Emergency Fund
This needs to be 5 months of income.
More important than any credit in the world.
You never know when you can lose a job, have medical not covered by insurance, or have car repairs.   Get that savings account in place.
Did you know credit card companies can check your accounts?
Prove to them that you are not a financial deadbeat

Anonymous · Answer

I started building my credit by getting a $500 bank loan using a cd as collateral. It raised my credit score. Credit cards are fairly easy to obtain.

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I need to build my credit?

4 Answers