Building / Rebuilding a credit score
Currently I have no credit score, I had my brother run it to see what it looked like b/c I was thinking of buying a house. He basically called me back a laughed at me saying there is no way I'm gonna get a loan. Which is fine for now, but not in the future. In college I ran up a nice little debt and was EXTREMELY inconsistant in paying the bills, I didn't have the $$. Now I am curious as to what I can do to build / rebuild a credit rating. Is no score better than a low score, or visa versa? I try to get CC's to have in my name, but b/c of no credit score none are real good deals or even really worth it. Any info would be helpful.
thanks, 
ryan
One way to build credit is to deposit $1000 or $2000 into a bank and ask for a loan (I think this is called a signature loan, but I'm not positive), your deposit will serve as leverage. Take the loan money and do it at another bank. You can do this at three or four banks. Pay the loan back over several months. You will then establish credit and build a relationship with the banker for future loans. You can also write a check to a credit card company for 500 dollars or so and then they will give you a line of credit for the amount deposited. Soon they will give you deposit back.
i will look into that, thanks for the tip....it is greatly appreciated...
ryan
Email me at cjfeath@aol.com. I can help you out with a little info from you that should not be posted here. I am a mortgage broker and can put you in the right direction. I currently can NOT lend in washington so it will not be a solicitaion.
To Marsten BWBSTL has the right idea. The best way to get over bad credit or no credit is to cover it up with good credit. Yes save up some cash go to bank and tie up the money lets say $3000 they will give you a loan on the secured money. Talk to the loan officer and tell him that you want to establish credit with their bank. Where I differ is this: put the money back and use it to pay the monthly payments. Pay at least six months then pay off. This will give you time to save more money and get you used to paying monthly, after a couple of times then you can branch out. Take it slow remember you have to pay back what you borrow. Jerry
There is an article by drifter that you may want to read. It's called Credit 101.
I've heard other investors refer to what BWBSTL explained as the bank round robin. You build credit by showing that you can make prompt monthly payments. Loans and credit cards are good for building credit if you can make the payments on time.
So when you take out several loans from different banks against the money you deposited ($2000), then you will build up your credit quickly when you start paying the monhtly payments for about 6 months, then pay them all off. That way your credit report will show several loans that have all been receiving on time payments.
Good luck and read the article, it may help.
Tanya
Well I have to say these guys have it right on how to boost credit quickly. Also see if you can find a bank that does not report the loan as secured some banks will some banks will just report it as a loan. After about 6 months like the others said pay them off. Also make sure there are not to many inquires or that will bring your score down significantly believe it or not. Try to keep them to about 2 every 6 months or under 5 per year. Any other questions on credit repair please let me know at rowland333@hotmail.com