How to be approved for bank loan with no credit history?I am 19 and building my credit. I have average scores bsaed off a limited history of revolving credit cards. I would like to get approved for a bank/personal loan but was turned down today for a modest amount. Again I find myself in a paradox. As before, I found it difficult to find a credit card willing to approve... | |
The trick is to build credit and you balance sheet so you can get a loan is to. Borrow funds to hold them on deposit, make some interest payments, then give back the deposited the interest payments is 4.9. After three months you will be on a few bureaus. http://creditloader.com will let you borrow the funds with NO CREDIT CHECK
Your % revolving debt may be too high and your credit limit bay be too low. You should keep your balances at less than 15% of your credit line. Also the easiest installment loan to get is an auto loan (if you need a car) signature loans you are applying for are rather difficult to get.
If you don't need the money, just keep your balances low, pay on time, and keep pestering your credit cards to raise your limit (this increases your % available)
Your credit limits must be over $500 and should be over $1000 to get any real points on your FICO
Also don't close any credit lines, its far better to have 4 or 5 lines of credit with -0- bal, that really boosts your score.
Use very little of your available credit and after 24 months you should be close to 680 FICO
Are you trying to get a loan because you need money or are you trying to build your credit? A bank won't approve a personal loan for you if you don't have a steady job, much less no credit history.
If you're trying to build your credit history, contact your bank about a secured credit card. If your bank doesn't offer one, try a credit union. A secured credit card is basically a prepaid debit card. The amount needed to open one depends on the bank. Whatever you open the card with will be your credit limit (ex if you open your secured card with $200, $200 will be the limit on your card.)
This may seem to defeat the purpose of a credit card, but you're trying to build your credit. You need to make your monthly payments on time, and pay off as much as the balance as you can. After about a year (you're still young, you have lots of time), pay off the balance and then try to apply for a regular credit card with a low balance. You'll need to have at least a part-time job to show that you have an income.
It's important that you keep a good payment history. One late payment can really set you back. Good luck.
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You seem to be on top of your finances and 670 is pretty good for someone your age. I think banks are a little leery of approving a loan for you because of your age.
I would look into trying to get the car loan. If you can save 10-15% of whatever you're looking to spend on the car, you should be able to secure a decent rate on your auto loan from a dealer. If you're looking to finance through a bank, having the down payment on hand shows that you are financially responsible and that you have the means to pay your loan.
You're in good shape. Going through this at 19 is much better than going through it at 29.
I would say try joining a credit union if you can. I have two sons who are 22 and 21 years of age. My youngest son who's been employed for a year was able to get a credit card for 500 dollars without me signing for him. My other son who doesn't have a job wasn't able to get a credit card because he didn't have a job, but he got a visa because I signed for him.
Also I would try getting smaller loans and then pay them off to help build your credit. Also try not to close and open credit cards. You should hold the same credit card for a long time. If you close the card your actualy closing your credit history.
We joined a postal credit union at our local post office but we're not postal employees.
Anyways good luck on that...
It is important to build credit in American society starting at a very young age. The reason that it is increasingly important to build credit is because of the standard developmental stages American adolescents and young adults go through. After leaving home, a majority of American children go on to college. In order to be able to afford the expensive items (like textbooks) and the fun activities (like Spring break trips), it is sometimes necessary to rely on credit. You want to build<!--credit which reflects your credibility as a borrower. In order to build credit of this kind, you will want to follow a few simple rules. The first is to make sure that you pay off the balance of each credit card in full at the end of each month.
http://best-loans.awardspace.com/repaircredit.htm
If you build credit early, it will be there to access during your starving college years, when you may need it most. After college almost always comes a car, a family and a house, all of which bring their own financial obligations and each of which requires that you increasingly build credit which reflects your stages of growth.Other keys to build--> credit are to always make payment early or on time, to make sure to always stay within your given credit limit, and to avoid applying for numerous credit cards. Regular monitoring of your credit report is also important because, once you build credit, you don’t want it destroyed by computer errors or, worse yet, identity theft.
