How do you Get Credit when you have None?

Many people are keen to find out how they will be able to obtain some form of credit when they don’t have any credit history yet. While some may think it isn’t possible to do this, this is not the case. These days, there are a few different ways in which you can start to build a credit history when you have not had any form of credit before.

Obtain a Secured Credit Card

Applying for and obtaining a secured credit card is normally the easiest way to get started with building your credit history. A cash deposit that you will need to make ahead of time backs these cards, and the amount deposited will normally be the same amount as your credit limit.

A secured credit card will be used in the same way as a regular card in that you’ll use it for purchases and make payments on or before the required due date. If you miss a payment for any reason, your cash deposit will be used as collateral.

Get a Co-signer

You may also be able to obtain a regular credit card if you can secure a co-signer. However, it is important for the co-signer to be made aware of the fact that they will be held liable for the full outstanding amount if you happen to skip payments.

Obtain Authority to become an Authorized User on Someone Else’s Credit Card

In some cases, you may be fortunate enough to have a family member or close friend that will be willing to add you on to their credit card as an authorized user. When you become an authorized user, you will need to keep in mind that you will be able to enjoy full access to the other person’s credit card so that you can start building a credit history. Although you will not legally be obligated to repay what you have used, it is the decent thing to do, especially if you want to build a good credit history.

When trying to build a good credit history, it is essential that you make any required payments on or before the due dates stipulated. Failure to do so will negatively affect your credit history.

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