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Originally Posted by TopBucksTrixxxia
It's not an immediate solution but here's what you can do to improve your credit. As soon as you have some bucks you can put aside, apply for a credit card that you can give a security deposit on - (say $500.00 limit - you give $1000.00 in security) Use that card and pay off your balance monthly - don't go crazy keep a balance for one month then make your payment (don't always leave it at zero or it doesn't give you a credit score). After about 1 year or more, you should have better credit even if you're still young.
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You would only have to give the credit card compnay $500 not a thousand but there is a better way to establish credit and do it quicker than with one credit card reporting to equifax etc.
Here is what you do. Go to your bank and tell them you want to borrow $500.00 and they will ask you for security. tell them you will open a $500.00 CD as colateral for the loan. Note you are making money (even if it is only a little bit) on the deposit that is securing the loan and they will be happy to do it because the CD is at their bank. Next, take the $500.00 they give you and go to another major bank and do the same thing. Repeat this 3 more times and you have 5 major banks all reporting to equifax, etc. You establish good credit faster and even if you have 5 payments/mo. for 12 months your payments will probably not be more than $50.00 for each account totalling payments of $300.00/mo. At the end after you have paid all the loans off you also have $2500.00 worth of CDs that have been earning money for 1 year. You also get to claim that the CDs are savings accounts on future credit applications which looks good too.
Basically, it costs you about $1,000.00 for the year after you cash in the CDs to establish a decent credit history.