The frustrations of having no credit history

[Amber-Cakes]

I wanted to post this topic because i am severely frustrated about this. I am 20 years old. I have never had a credit card or a loan thus i have zero credit history. No one will give me a credit card not department stores or anything. The only advice i am given is "get a credit card and pay it every month to get credit" which i can't do because i can't get one without already having credit.

I could live without a credit card but i am trying to get a cell phone and am faced with a $1000 deposit to start my own account.

I'm not sure what i've going to do honestly. Prepaid phones are out of the question. I'm pretty sure there is no way the phone companies will lower the deposit amount. Everyone i know had a $300 deposit max without credit i don't know why mine is so high. The fact that i never needed to borrow money should be a good thing. THIS WORLD CONFUSES ME!!

Woe is me. Has anyone else every been in this boat? What did you do?

 

[TamaMum]

I was not offered instant credit when I first started out either.

I opened a bank account, deposited a little money I had saved into it, paid all my wages into it every week and survived without credit for 6 months until I was offered a bank card.

These things take time and the way a lot of financial things are set up is that you have to prove you can keep in credit before you will be given any credit - yep, it kind of sucks but there are so many people who are given credit and then don't keep up with their payments that it has taught banks, department stores and credit card companies to become wary. They learned from their experiences.

I don't think there is some magic wand that automatically allows you to be trusted with credit until you've proved yourself

Have you tried to get a credit report on yourself to see if there is any information that might be causing banks, etc. to require a large deposit?

If you have to pay in US$1000 to start an account that will give you credit then it may be more sensible to consider a different kind of account that requires you to pay in less. It might mean you have to wait a while to be offered credit, but at least you will have an account and be able to prove that you can stay in credit and not go overdrawn?

 

[Amber-Cakes]

I was not offered instant credit when I first started out either.

I opened a bank account, deposited a little money I had saved into it, paid all my wages into it every week and survived without credit for 6 months until I was offered a bank card.

These things take time and the way a lot of financial things are set up is that you have to prove you can keep in credit before you will be given any credit - yep, it kind of sucks but there are so many people who are given credit and then don't keep up with their payments that it has taught banks, department stores and credit card companies to become wary. They learned from their experiences.

I don't think there is some magic wand that automatically allows you to be trusted with credit until you've proved yourself

Have you tried to get a credit report on yourself to see if there is any information that might be causing banks, etc. to require a large deposit?

If you have to pay in US$1000 to start an account that will give you credit then it may be more sensible to consider a different kind of account that requires you to pay in less. It might mean you have to wait a while to be offered credit, but at least you will have an account and be able to prove that you can stay in credit and not go overdrawn?

i've had my bank acount since i was 17 and have never over drawn. I've had between 500-3000 total in it at all times. I haven't tried getting a bank credit card. Maybe since i've been so good with my account they will give me one.

I haven't tried to actually see my credit score or report. I figured there wouldn't be anything on it as the only accounts i've had is my bank account which i never over drew, i bought my car with cash, and i've had car insurance for a year and half now and pay on time every month. But i guess it won't hurt to check it out. I'm not sure what i'd do if some how there was something bad on it. It'd have to be a mistake or something.

I guess i will just try a different cell phone provider.

AT&T was the company that wanted me to pay $1000 deposit for their least expensive plan and a $50 dollar phone Dx

If they all want a deposit that large i guess i will just be stuck trying to find somewhere to give me a credit card and start using it and paying it before any interest is added every month to build up credit.

I was just so frustrated because i know people with BAD credit who had a $400 phone deposit but i guess it all just depends. Even though i would get the $1000 back in a year and i have more than that saved up right now i really don't want to use my savings account for that purpose.

Thanks for your advice i will have to look into other options than AT&T it seems! lol

 

[magicboa]

What's wrong with pay as you go phones? That's all I've had for years. I bought a phone at Walmart for $15 and buy phone cards for $30 for 120 minutes every payday. I like the no contract, no hassle. I do have great credit (score is 840). I got good credit by buying a car or two and paying them off, and by buying a house and paying it off. AT &T is a rip-off in my opinion. Get a Trac-phone ike I did.

 

[Aubrey Hepburn]

I'm 25 and having to repair my credit after a store credit card payment plan got out of hand. It truly bites. >_< I have no advice as to how to obtain credit responsibly, but I can say that $1000 is outrageous for a phone plan!! I have never heard of anything like that...can you go in on anyone's family or group plan? I understand wanting to have your own account, but there's no way I could ever bring myself to pay that much for a phone plan. :[

 

[ciara683]

Dunno where you are but places here just give you credit cards for free :/

Im 19 and on my 19th birthday I had like 6 different places send me credit cards

 

[Aubrey Hepburn]

^^They do that, but that doesn't mean that once you apply, they accept you.

 

[binary]

If you've had a full time job with the same employer for at least six months, have lived at the same address for at least six months, and have had a bank account (to which your pay is automatically deposited) with the same bank for at least six months, you should be able to get a credit card from that bank. Initially the limit will be quite low (maybe $500) but it's enough to get you started.