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No Credit?
Some times not having a credit history seems worse than having bad credit. If you have been charged a large downpayment to get a cell phone or have been turned down from a credit card it may be because you lack a credit history. It is hard to have good credit if you have never opened a credit account. If this has happened to you, it would be wise for you to open some credit accounts to begin to establish a credit history. The best time to build positive credit is at the beginning. Try this offer to begin building your credit: Vision Premier¿ Prepaid Visa® Card (Free with Direct Deposit) |
Credit can most simply be defined as: Your financial worthiness
Having good credit means it will be easier for you to get a loan or a credit card with a low interest rate. The lower your interest rate is the less you must pay each month. Good credit really is a big deal. If you have been turned down for a lack or credit you may ask. What can I do to build credit?
When you are just starting out it can be hard to come by a loan or even get your first credit card. Sometimes having no credit seems worse than having bad credit. The reason having no credit is so problematic is that lenders don’t have anything to base your credit worthiness on. Lenders don’t know if you are a good risk because they don’t know if you will make payments on time and repay the loan. Nevertheless don’t fear, establishing a good credit history is not as difficult as it seems.
One of the easiest ways to begin building your credit when you have no credit history is to acquire a secured credit card. With a secured credit card you are borrowing against your own money. You basically deposit money into the card. When you spend the money it comes out of the secured credit card and you pay it back just like an unsecured credit card. This allows you to build your credit even though it is your own money. Click on the link below to try a prepaid credit card.
There are other ways to build your credit. You can apply for credit through a local store. Local stores are more likely to extend credit to people who don’t have an established credit history. If you know someone with good credit who will co-sign on a loan for you ask them to co-sign on a car loan or a credit card. By co-signing they are agreeing to pay back the loan if you don’t. So be sure to be extra responsible since their credit will be affected if you don't pay. Also ask your parents who have good credit to add you as an authorized user on their credit cards. When you are an authorized user on a credit card you receive their long history of credit. So if they have had a great payment history for ten years on that card so do you.
Whatever method you choose to begin establishing your credit make sure you pay your payments on time. The best time to build a positive credit history is right from the beginning. Some of the things that the credit reporting agencies look for are:
Keep these things in mind as you are trying to maintain a positive credit history. If you remember that the credit reporting agencies (the ones who decide what your credit score is) look at all of the things above when you first start establishing your credit and you constantly take positive action in all these areas your credit will stay very strong. |
