I've tried a few times now to get something on either finance or a phone on a post-paid plan, and have been knocked back because I don't have a credit rating.

I have a prepaid phone in my Dad's name, and have never been game enough to get myself on a plan (phone plan) or a credit card because I don't like being in debt.

Thing is, now that I can afford to get a new phone on a plan I can't because I don't have a credit file.

But I'm confused... how am I meant to get a credit rating if I can't get credit?

I'm thinking of applying for a credit card, but don't -really- want to as I'm careful with my money and save up for everything I need and have never found a need for one. My main everyday bank account is a Debit account so I don't need a credit card for online purchases.

What can I do to get myself a credit rating?
Ellie

You may be able to get a co-signer for a phone plan, or put down a security deposit.

What I did to start building credit was applied for a secured credit card. They have terrible interest rates, usually have anual fees, etc. and you have to put down a security deposit on the maximum credit line of the card (ie: if your limit is $500, you have to put down $500 before you can use it) but they build credit pretty quickly. Use it for small purchases and pay it off regularly. I got mine through Capital One, but other companies have them as well. Once you are able to get a regular credit card, get rid of your secured one.

I have a credit card for the sole reason of building a credit rating.

Like you said, I also have the money in my bank account for anything I buy so I don't use it to buy things that I can't necessarily afford. I pay the whole bill off each month from by debit account so it doesn't cost me any interest.

Having a credit card doesn't mean you have to change your spending habits - you could put just one purchase on it each month and pay it off from your debit account as soon as the bill arrives.

Credit card =/= debt. People keep thinking that because they see irresponsible use of credit cards.

I have two...they're not used often and are paid off as soon as they're used. One's a Mastercard and one's a Visa, so I've got a little variety, heh.

The only debt I have is student loans...the credit cards are fine and I've got a great credit score.

I guess I am headed to the bank this Friday, haha. I have no other options, it seems

I'll do the small purchases etc and put aside the money I used, on the credit card, from my debit account.

I'll leave this thread open in case anyone else has some good ideas on the topic...

The Suze Orman book "Young, Fabulous and Broke" has a whole chapter on how to go about this.

When my kids were teens (like 14-15), I co-signed for them for a MasterCard from my credit union with the very specific goal that they would have a credit rating in their name when they went away to college. I also read the Riot Act to them on how it was to be used e.g. it wasn't a money machine. They were to make small purchases and pay off the balance either from their allowance or the proceeds from their summer jobs. [I wouldn't let them work during the school year.]

When they got to college...a long distance from here they did have a rating and when they graduated from college, both kids had a credit rating so that both could buy a house or condo with two years out of college (three months in the case of my son.)

My wife and I use our two main credit cards a lot. We routinely run $3-4,000 a month through the cards and rarely pay cash for anything. We have not paid a nickel in interest in over 20 years.
To us it is simply a convenience. BTW, we also have cards (AMEX through Costco) which pay us rebates on items. We get 4% for gasoline, 3% for retaurant meals and 5% for travel. The rebate comes in the form of a check redeemable at Costco where we would shop anyways. Once you do have a high credit rating, you can also do some negotiating with the credit card companies. When one of them tried to raise the rate, we just called them up and said if you won't give us the low rate (or waive fees), with out credit rating...well over 800...we can get a card that will. The card companies will match the best rates in those cases. We don't pay interest since we zero out the accounts every month, but we also have not paid an annual fee for a card using that stratagem. Of course, you cannot routinely run that amount of money through a card unless you have the resources to pay it off every month, which fortunately, we do.


Jon

Couple things to do. As was mentioned above, get yourself a co-signer on something, phone, CC anything that results in a debit being incurred and then pay it off as soon as possible.

When you get a card, make lots of small purchases and pay them off in the end of the billing cycle. This is the best way of making a good score and rating.

Whatever you do, don't get over your head with your credit. I was doing fine until I was out of my secondary and now primary employment due to my injuries. I used up my several months of my "rainy day fund" and now it's hard for me to keep my head above water.

I started my credit rating by getting a store debit card. It was just for Myer, and the credit limit was only $500.

My phone plan was originally under dad's name, and as soon as I turned 18, we went and got it changed into my name. We just had to sign some paper work, and that was it. Can you try that?

I now have a credit card which I put my petrol on each week, and as soon as I get home, it gets paid off. I have a MasterCard Debit as well

Thanks for all the replies guys!

I'm going to apply for a Student Credit card (no fees, 55 days interest free, 19.99% pa on purchases and 21.49% on cash advances... I'm sure I could get a better interest rate etc elsewhere but it's through my bank, so I'll give it a shot) this morning as they have special credit criteria for student applications...

I'll let you know how it goes