Question: I’m interested in getting my first credit card. I’ve applied for several, but have been turned down simply because I have no credit rating. How do I get a credit rating? I asked around about secured credit cards, but none of the local banks seem to offer them. Any other ideas? The reasons I want a credit card are for protection of my purchases and so I can rent cars (not cats!) on occasion.
Answer: as others have noted, you aren’t limited to local banks for your credit cards.
as for a secured credit card, here’s one company that specializes in such – First Consumers in Portland, OR. 1-800-876-3262. Note that this is expensive credit, but if you can’t get a card with anyone else…
also, consider buying some consumer good on time (appliance, furniture). again, you’ll pay a high interest rate, but you will establish a track record. a loan secured with collateral can be a little easier to get. My hubby and I went to the bank where we had our checking account and applied for a personal loan of 500.00. Since we had more than that in our account and he was in the military, they gave it to us. We then took the 500, put it in a savings account, and paid the loan back with it over a period of 8 months (it was a 12 month loan). Based on that, we were able to get a credit card from Chevy Chase. For something to go on your credit sheet, you usually have to make at least six payments– pay a little over the minimum, and make sure it gets there 2 days early, if you can. Everyone’s been so helpful. I thought of trying the above suggestion. However, I was told by a woman who works there (and this was verified by her boss) that a collateral loan won’t affect my credit rating one way or another at my bank. Their reasoning behind this is that if the loan is NOT paid back, they can simply deduct it from my CD or account. I asked them to report it to the credit bureau anyway, since I’d be paying of my own free will. No luck. *sigh* It really annoys me since I have a substantial amount of my money in this bank.
But I am going to look into the non-local banks offering decent secured credit cards as mentioned in previous posts, as well as apply at some more stores soon.
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