As someone with no credit, what would be the best way to start building credit?
Answers | 4
If you have prior derogatory accounts on your credit, you'll likely have to get a secured card. I'd still start locally, as on line lenders often have high application/processing costs that can approach $100. Ideally, get a couple of secured cards and (when possible) an installment loan. Ask your bank if they offer secured installment loans. The credit scoring models like to see a mix of accounts, so having two types (revolving and installment) will boost your scores quicker than just revolving accounts by themselves.
Hope this helps! Ted