Having No Credit - How to Build It By Tom Tessin At Isnare.com Ezine Articles

A common question that is asked among many young adults is “How do I get a credit card when I have no credit?” Well, establishing your credit does take time but you need to start sooner or later. Even if you’re 40 years old and have no credit, it’s never too late. The same can go with retiring. Why keep thinking about it when you can do something about it? I’m going to give you some tips and pointers that you can use in order to start building your credit.

Look at student credit cards – If you’re a student, you’ll want to look at student credit cards. These types of cards are created for young adults that are attending college. Since 99% of the time you don’t need credit to apply for one of these cards, these are a great way to build credit. Sure, you’re going to get a low credit limit at first but over time, if you use your card right, you can build your credit score up over no time. Just remember to use it properly.

Try a secured credit card – If you’re not a student or you don’t like the idea of the student card, you can always resort to a secured card. These cards are meant for those with bad credit but those that don’t have any credit at all can apply for one as well. These cards work like any other credit card but you’re going to have to put a deposit on your account.
Why do you need to do this? You will need to do this because you’ll be considered high risk. If you don’t pay your bill off in time, the credit companies can dip into your deposit account and take the money they need. As long as you pay your bill off in full and on time, you can count on a great credit score.

Look into department based cards – You probably have a department store around your house like a Sears or JC Penny. These are great places to start if you’re looking to build credit for the first time. Since these companies are fairly lenient for your credit score, you can have a great chance of being approved. The only downfall to these cards is that you’re only able to use them at the store only but if you use them every once in awhile and your account is in good standing, you can count on having a higher credit score in the future.

These are just a few of the ways you can start to build your credit. When you do find the card you need, you have to keep in mind that you can’t spend over your head. You have to treat these cards as if it were cash in your hands. If you don’t have the money to buy that $100 item, don’t buy it. Many people find themselves buying things they don’t need and then find out that they can’t pay their bills. This just leads you down the road of debt. Be responsible and a great credit score shall come.

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