As of January, I have been self employed. It has been amazing and is exactly what I want to do!
I am getting married in about a year and a half, and we want to be able to buy a starter home. I tried applying for care credit for a lasik procedure I am having done, but didn't get approved (even with a cosigner of great credit). I tried a capital one card, the same one my fiancee got approved for the prior week. We make pretty much the same, I am just self employed… I talked to my credit union and they said I can build credit by opening an easy line of credit, and just take out $500 and basically pay it back right away but keep the account open. So I would technically be making consistent payments because of the fee to keep the account open, hence looking good to the credit bureaus. However I just went in, and they need 2 years of self employment tax returns, which obviously I don't have since it's only been 6 months.
I have heard if I keep applying for credit cards, my score drops. So I feel like I'm screwing myself over by trying to do that way. Thank God she is at least able to start building credit.
I make monthly payments to my gym, as well as paying for my own health insurance each month, does this build credit? I have come to terms that we may not be able to get a mortgage loan right away, but does anyone have advice for ways I can at least start to build credit? I still live at home btw.
Added (1). Not sure if it helps, but I also do contract work for a company about 30-40 hrs a month. I'm not employed by them and it's not taxed, but it's consistent pay and I get receipts on the checks they give me, so I wonder if they would kind of help since that is consistent income? It's related to what I do.
Read more: Newly self employed and seems impossible to build credit?
