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Summary: 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.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"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."
eHow Article: How to Build Credit When I Don't Have Any
Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.