How to Build Credit When I Don't Have Any

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The best way to build credit when you don't have any is to have someone with good credit co-sign on a small loan or credit card, which paves the foundation for good bill-paying habits. Build up good credit from scratch with advice from a registered financial consultant in this free video on money management.

Part of the Video Series: Money Management & Credit
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Video Transcript

This is financial adviser Patrick Munro talking about how to build credit when you don't have any. One of the best ways to build credit is to find a co-signer who does have good credit and get them to sign for you in a small way, some credit that will allow you to demonstrate to a lender that you have the ability to pay. Eventually when you pay off a loan of that nature, with the assistance of a co-signer, you can decouple from the co-signer and be considered as a good credit risk on your own. In fact, that's how I got started. My father co-signed for my first car loan and from that point onwards I was able to be independent after I paid the car off. This strategy still runs true today and you can do that. If you don't have a co-signer it's possible for you to start building credit using a cash based credit card where you place money with a credit card company, spend that down, pay off a successful track history with a credit card and eventually you too will be granted a credit card and off to the races you go so to speak. This is how to build a credit score without having any credit. Financial adviser, Patrick Munro.

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