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No Credit? Get At Least Three Accounts/Tradelines

We often see young borrowers or new immigrants with no established credit. Our advice always is to establish at least three or four accounts as soon as possible.

Here are several ways:
1. Secured Cards. Credit card providers like Capital One and Wells Fargo will offer “secured cards.” These are credit cards with credit limits that are matched by cash deposits from the card holder. They often start with as little as $200 credit limits.
2. Buy a car. The terms will not be good, but auto financiers are very flexible for buyers with proof of employment.
3. Department Store Credit Cards. These issuers too tend to be more flexible.

We recommend pursuing all avenues and establishing as much credit as possible, and then managing it perfectly (paying off balances every month).

This advice also applies to people exiting a bankruptcy and trying to re-build.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646