I’m 23, not currently a student (so I can’t apply for student credit), I co-own a business, I don’t own a home or a car, my credit score is 704 (on Transunion), I have one store credit account with Macy’s (limit 0) and one credit card which I opened with Best Buy (limit 0). Both of them are currently paid off.
I opened the Macy’s account in June of ‘06 and the Best Buy in August of ‘07. Both accounts have good history, the Best Buy one has a perfect record of payment while the Macy’s has one 30-day-late payment back in November of ‘07 (which I think probably hurts my chances more these days than it would have a few years ago).
I’m looking to open another account with a better limit, but it seems to be difficult. I don’t have an extensive credit history, but just how am I supposed to make one if I keep getting turned down? I tried to increase my limit with Best Buy, but it was denied (with the reason being that limit increases weren’t available.. but if that’s the case, why did they even let me go through the process of applying for one?). I also tried to apply for an American Express business card (the Plum Card), but since my business is new they had to look at my credit, and it was also denied.
I don’t want to make too many inquiries on my credit, but I want to try at least once more. With what credit company do I have the best chance of getting approved for an account, under my circumstances? I will also consider a loan, but I’m pretty sure that’s actually more difficult than a credit card.
I need to get a laptop that I can use for my business, but my business is too new and on top of that the other co-owner has bad credit, so I need to open something with my personal credit. I don’t need a very large limit, just 1-2 thousand would be *extremely* good for me.
Any suggestions or advice would be greatly appreciated. Thanks!
Forgot to mention, American Express said they’d send me a letter with the reason I was denied, but I never got anything.
You should join a credit union. you could eligible for membership through family, community or association. They are non profit owned by their members. They offer low interest rate loans. At my credit union they even make small business loans.
It is a catch 22 with credit. They want you to have a positive history with multiple accounts, but if you can’t get anyone to approve you then how are you suppose to obtain what they want? I got most of my cards when I was a student and just went from there. I have no real advice to give. Except maybe you can try for a secured credit card, but with that you have to have the money to back up your credit limit. Which basically defeats the purpose of the card. Have you tried going through Dell to get credit? That’s how I got my computer.
First, become an authorized user. Find a family member with great credit and ask them to add you as an authorized user. You’ll get the benefit of their history without being liable for the charges. It only works if you’re related or share an address.
Here’s a real shortcut:
http://uneedtosee.com/this/creditcard
You can purchase a $5K or $10K line for instant credit history. They have a 100% approval rate and report to all 3 credit bureaus. This would normally take you years to do.
The other lenders will view you as more credit worthy when you have $5K, $10K, or $15K available and a 704 score.