How can I improve my credit if I can’t get lines of credit?

Question

I went to my bank and they told me last year to open a tax free savings account to help my credit. That was last year and I’ve been putting some money in it but there had been no change to my credit score. Everything we have is in my husbands name. I couldn’t get us cell phones, internet or even electricity. If I was a single person I’d be better off living in a box.

When I was 20 I signed up for equal payments on my gas and hydro bill. I wasn’t aware that it all collects and when you move you have a big chunk to pay. They didn’t let me know that I had accumulated such an amount and sent it off to collections. It sat there for 5 years before someone finally called me about it. It ruined my credit so bad. And now that I am at that stage of my life where I need a car and a house, I can’t even get approved for a $300 credit card. I did however get a $300 secured credit card but afte two years of having it, it still hasn’t had much of an effect on my credit. Getting shot down every time I try for a line of credit isn’t helping either. I only try about once a year for a new line of credit but this is getting stupid.

So, how else can I improve my credit? I don’t have bills except for a secure credit card.

Vinegar Taster · Answer

Start buying things on credit and pay it off .

exactduke · Answer

1.  pay off the stuff you have in collections
2.  pay your bills on time
3.  get a secured card
4.  quit applying for credit cards & lines of credit.  Every time you do this, it decreases your credit score by 25 pts.

You're unlikely to be buying houses or cars in your name anytime soon.

Gary B · Answer

You need an account that reports to eh credit beaureaus, but you also need accountants that the people you are trying to get credit from think are important.

Try getting a Pre-paid Credit card.   With these, you send them an amount, like $100 to $500, and they open a line of credit for that amount.  you USE IT just like a normal credit card, and that DOES get reported to you credit bureau.

And yuou MUST always pay them back IN FULL every month, because you WILL GET REPORTED if you miss a payment.

? · Answer

it is a good idea to start with a store credit that you can get and once you have established a good payment record with them other applications for other credit is more available

Eva · Answer

Your bank gave you poor advice.  A savings account, tax free or not, does nothing for your credit.  Find a place that will sell you a small piece of furniture or an appliance with no credit check, then pay off the piece within 6 mos - 1 year.

Casey Y · Answer

Without assets and significant income, you aren't getting a line of credit.

Are you using the secured card??  Check your credit reports (not the score) and confirm it is being reported.

StephenWeinstein · Answer

You can improve your credit by doing nothing.

You cannot improve it by doing something when it is this bad.

You must stop first.

Mama Kimama · Answer

Don't make money mistakes.   Pay all bills on time.   Don't run up a lot of debt.

Slickterp · Answer

A savings account wouldn't help credit.  Start with a secured card.

Trending News

How can I improve my credit if I can’t get lines of credit?

9 Answers