How to Build Up Credit for People with No Credit

I am fed up being rejected by credit companies every time I apply for a credit card. I applied for Wal-Mart, JC Penney, Visa, Mastercard, Discovery and a lot more type of credit cards, but they always send me a letter saying that I lack of credit report. I am almost frustrated not to be able to build a credit and don't know how I can get one because they always reject my application.

In May 2006, I established a gift shop business. I buy handicrafts and jewelry from other country and sell them here. Recently, I want to expand my business by buying more items and rent more space, but I'm not in a good financial situation. Furthermore, it's hard to apply for a business loan because I don't have credit score.

I couldn't get a loan anywhere, from the bank or from loan companies. I was inquiring here and there until my eyes spotted to the website of Prosper Marketplace, Inc. based in San Francisco, California. I looked into the website and found out some interesting information that is very useful for my situation.

After reading and understanding how it goes, I decided to join a group. This is the basic requirement when you want to either borrow or lend money. The leader of the group will decide whether to accept or reject your membership after checking your identity and also your credit score.

I felt discouraged at first because I was thinking this would create the same story as before. Being rejected! Fortunately, I was accepted and I started to put my loan listing there. This website is very interesting. If most of you have used eBay and learnt how it works, this website does almost the same thing. The difference is instead of listing and bidding on items, people list and bid on loans. The parties are borrower, lender and Prosper Marketplace. If you want to borrow, you should create a listing based on your need. You can borrow up to $25,000. I started with a loan of $1,000. The system will guide you to the acceptable interest rate you can offer based on your credit grade. They pull out your credit report from the credit report company and you will fall under one of these 8 credit grades: (start from highest to lowest): AA, A, B, C, D, E, HR, NC.