How to Create a New Credit File Legally
- 1). Get a prepaid card to start creating a new credit file legally. Apply online. It’s fast, easy and there are no credit checks. Acceptance is guaranteed, provided you can prove your identity. Many card issuers offer MasterCard and Visa cards. Joining fees and monthly management fees are charged. They vary so check the best option for your requirements. There is a charge for ATM withdrawals. Importantly, ensure the card you apply for provides credit building. This means that certain transactions made using the card, are reported to the credit building company, PRBC (Pay Rent, Build Credit Inc.).
- 2). Get a secured credit card: it’s a great way to create a new credit file legally. Apply online. All major banks offer these cards. Check websites to see the range of cards. Application is quick and simple. You need to make a deposit to open a secured card account. You will get a credit limit of up to two times your deposit. Interest is payable on any balance outstanding each month. If you pay the total amount due each month there are no interest charges. Payment history is reported to credit reporting bureaus.
- 3). Get a store card. Apply online or in the store. Interest charges on outstanding balances can be high but they are easier to get than a regular credit card. Pay the full balance each month and no interest is charged. Payment history is reported to the credit reporting bureaus and assists in creating a new credit file legally.
- 4). Set automatic monthly payments for your gas, electricity, water and telephone. Utility companies report to credit reference bureaus. Payments are recorded on your credit file.