Image Courtesy: The Consumerist
Do you ever think back to how and when you started using credit? The days where if someone pulled your credit file, instead of pages and pages of accounts and inquiries, you'd only see a blank sheet of paper.
I'll never forget how my credit history started. The year was 1995 and I was 18 years old. I'd applied for one or two regular credit cards but I was declined due to lack of a credit history. I didn't let that stop me though; I was bound and determined to get a credit card. After all, an 18 year old with a credit card would make people think I had money, right?
I don't remember if I saw the advertisement for a secured credit card on a TV commercial or in a magazine. All I had to do was send them $300 and they would send me a credit card with a $300 credit limit. The $300 I mailed them would stay in an savings account and earn interest but I could not withdraw the money.
I mailed them the money and received my credit card. In fact, I still have an account with the bank. Only now, my initial $300 credit line secured card is now an unsecured card with a $35,000 limit and I am not required to maintain a savings account to serve as collateral. I don't really use the card that much since I have another credit card that offers a better cash back program. This is my oldest credit card though and I try to make sure I use the card every now and then just to keep the account open and active.
Now it's your turn, how did your credit file start?