How to Establish Credit If You Have No Credit History

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By MSmith
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Establish Credit If You Have No Credit History

We all understand the disadvantages of having bad credit vs. great credit score and history. The truth is having no credit history can hurt you as much if not worse. Start establishing your credit score as soon as you can.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

Read this article
Have a plan
Self discipline
Read my other article abou how to build up your credit scores

Step 1

If you are a college student, take advantage of the offers sent to you. Start with a low limit and request increased amount after you have had a good standing with the creditors. Keep in mind you are trying to build your credit history. So please use it wisely and pay it off on time.
Step 2

Open a savings account with your local bank and apply for a secured credit card. Start with $200 - $500. You are basically borrowing money from yourself every time you use your credit card and bank charges you interest if not paid by the time your grace period is over. Use the card for your daily purchases and write a check or transfer money from your checking account to pay it off right away to avoid paying interest.
Step 3

Once you have Step two established for a few months, apply for a gas card. They are easier to get.
Step 4

Go shop at your favorite department stores with all that birthday or Christmas money and open a credit line instantly there and save additional 15% on your first purchases on the cards. Write a check or transfer money from your checking account to pay it off right away to avoid paying interest.
Step 5

Another easy way to get credit is through online electronic or computer stores like Best buy, Circuit City, Dell or HP. When you are ready to buy that laptop or computer, you can be sure to get the credit you need provided you have done the previous steps. Again, pay it off right away.
Step 6

You should eventually have at least 4 - 5 credit lines active and on good standing.In a year or two, you should be able to get any car loans, mortgage loans with decent rates provided your income allows it.
Read my article "How to Raise Your Credit Scores" to find out how you can maitain your number high.