Building (or rebuilding) credit is both frustrating and time-consuming. Using any of the "sub-prime" credit card offers can cost you in higher interest rates and fees. With the higher score requirements of banks now, it is harder than ever to get approved for prime credit rates. Aged primary credit tradelines are older, well-seasoned accounts that someone carefully maintained to build great credit. Acquiring those aged credit tradelines before applying for new credit can increase your scores so you get better approvals and lower interest rates.
Go to annualcreditreport.com to access your credit reports. You can do this once per year at no cost. You can also request credit scores, but there is a small cost for these. When you receive your reports, check them for duplicated accounts, outdated entries and errors. You should dispute these by calling the customer service number listed on the first page of each report, and be sure to follow up in writing. Doing so will help increase your scores. This process will take up to 30 days. Ask for corrected reports with the updates to be sent to you.
Talk with your parents, spouse or other relative about adding you as an "authorized user" on one of their old, well-established credit card accounts. Doing this will add that card account's entire history to your credit report, which will help increase your credit scores. You would not need to actually use the card to have this benefit. This process is commonly referred to as "piggybacking" credit card accounts. There are companies that "rent" this service of adding you to an account for high fees. You are taking a risk in using companies such as this since you know nothing about the owner of the card. It is much safer to work with someone you are close to, since you know that person's financial habits.
Stay in touch with the card owner to find out when she actually called her credit card bank so you will know when to expect the credit card history to hit your credit report. This usually takes 30 to 45 days, depending on the reporting cycle of the bank. Wait the allotted time, and re-pull your credit reports to see if the account is there. If it isn't, wait another 30 days, and request your reports and scores again.
Consider going to your credit union or bank and applying for a small credit card account to help you build your credit. Now that your scores have increased, you might get a fast approval.
