Are you aware that no credit can be just as bad as bad credit?
It seems totally unfair but this is the reality. It's just the
way things work in the world of consumer credit. Lenders are
very leery about lending money to anyone without a history of
being able to repay the debt. They have no way of knowing if
you are a good risk or a bad risk.
So what's someone in this situation to do? You can't get a
rental car, stay in a hotel or shop online without a credit
card. So let's look at a few of the options that can help you
establish credit.
Some of the credit options
Think small. While most of the major credit card companies will
not give you credit without a prior credit history, some smaller
ones such as department stores may give you credit. Another
place to try is the gas station credit cards. Apply for several
gas and department store credit cards. If you are lucky enough
to get one, make sure you use it, but more importantly, make
sure you make your payments timely. Your goal is to establish a
credit history, not run up a huge credit card bill.
Also try and find a credit card company that will look at your
overall financial picture and not focus solely on your credit
history or lack of it. Some may also consider your employment
situation, how often you have moved. If you score well in these
areas they may approve your credit application.
Secured Credit Cards
Secured credit cards are offered by lenders who will give you a
line of credit that either matches, or is slightly higher than,
a cash deposit that you give them to hold. As your experience
with the card grows, these lenders will often raise your limit
without requiring you to increase your deposit. Eventually, you
can use your experience with this lender to apply for cards that
are not secured.
Student Credit Cards
If you are a student, then you'll be best off with a student
credit card. Student credit cards can be a great way of
building the credit history that you will need to depend upon
after graduation. The important thing here is to remember to
use that opportunity wisely. Many banks will issue college
students a credit card, especially banks that are located in
college or university cities and towns.
When the time comes that you finally get your first credit
card, use it, but use it carefully, and most of all, make
certain you pay your bill on time.
About The Author: This article courtesy of http://ptgnet.com
