How to repair my credit (or lack thereof)

[Guest eyeWired]

Growing up my dad pretty much taught me that you shouldn't rely on credit and that you should just pay for everything in cash...so I really never had a credit card and I've only been to get by on sheer luck!

At the moment my credit is not stellar, I was just turned down for a car loan so I had to go back to my old standby and pay in cash. I would like to turn this around.

Currently I do have a couple dings on my report...each is paid in full and under about $200 (forgetful and busy is a bad combo).

Furthermore, I don't have ANY real credit. I don't have a credit card and all of my major expenses have been paid in cash.

How can I go about turning my credit around? I really don't want to be denied for a small car loan my next time around...really I just don't even know where to begin and what the best course of action really is.

Thanks

[Amerikaner83]

If you have a decent relationship with your bank or credit union, go in and ask them for a credit card or line of credit. Nothing big, just a grand or so. Once you have that, use the card for stuff like gas and groceries, paying it off every month. You don't want to be carrying a balance.

[Been_Ponzied]

Capitol One gave me a credit card and my score is only 577. However, they are the ONLY one that will. Other than those expensive cards where you start out with a $95 service fee to pay off.