Real Answers for Life’s Money Challenges
I spent the last 30 years in prison.
After I got out, I tried to get credit and nobody could even find me.
I finally got Transunion to give me a score in writing of zero.
I was unable to even get a $200 secured credit card.
What can I do to improve my credit and do it as fast as possible?
I would like to buy a fairly new car.
I have enough cash to put down at least half and finance the rest if I could get credit.
Can you give me some tips, just?
Or they already have credit and got a major limit increase.
Butbuilding credit from scratchtakes time, often about a year.
Your criminal history doesnt show up on a credit check.
If you dont have a steady income or employment history, getting credit can be even harder.
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Try applying for a secured credit card that specifically advertises that it doesnt require a credit check.
Youll still need to provide proof of income and your Social Security number to get approved.
But with no credit check, at least your lack of history wont be held against you.
These cards typically come with high fees and interest rates.
Doing so keeps yourcredit utilizationlow, which is good for your score.
Then, be sure to pay off the balance in full each month.
You could also apply for whats known as a credit builder loan.
Essentially, its like a loan that works backward.
Suppose you got approved for a $1,200 one-year installment loan.
These arent an option at most major banks, so check with online banks and local credit unions.
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Theyll let you report your rental payments to the bureaus, though you may need your landlords verification.
Over time, that can help you establish credit.
Your phone payments probably arent being reported to the bureaus that is, unless you become delinquent.
Since you have savings, it may be more realistic to pay cash for an older car.
you’ve got the option to upgrade once youve had time to establish credit.
A final option for you may be to talk directly with a used car dealership aboutfinancing the car.
Some lenders specialize in borrowers with bad credit or no credit.
Documenting your income will be especially important if you go this route.
Most lenders also have a minimum financing amount of about $5,000.
Or they have legitimate delinquencies and liens because they werent able to make payments while serving their sentences.
Be wary of anyone who offers a quick fix.
The only way to establish credit is to establish a history of on-time payments.
You may have to apply for multiple credit cards and loans before you get approved.
Start small and be patient.
Youve managed to build up your savings, which is no small feat after incarceration.
In time, youll be able to build your credit as well.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
