How To Build Credit When You Have No Credit

It’s a catch 22 isn’t it? Creditors want you to have credit before they will give you any. So how are you supposed to get credit in the first place?

Believe it or not there are some really simple ways to get credit when you have no credit. This article will show you a few different ways to make it happen.

By far the easiest way is to get a secured credit card. These cards require you to deposit the same amount you want in credit. That way if you never pay they already have your money.

But before you rush out all nilly willy to get one of these cards it is very important to find a few things out.

Steps To Building Credit When You Have No Credit

First – Do they report to all three credit bureaus? If they don’t report to all three forget it. You need to establish credit and the only way  you can do that is with a creditor that reports your pay history to all three bureaus.

Secondly – What kind of fees do they charge? They may charge set up fees, annual fees, handling fees etc. It is important that you know these things and shop around.

Another way to get credit when have none is to piggy back off someone that does. A close family member would be best. Just have them add you to one of their credit cards as a joint card holder. You will instantly get their entire credit history with that credit card on your credit report.

If you go this route make sure that you have an open and honest conversation with them about the credit history of that card. If they missed payments it will reflect on your report.

Secured personal loans with your bank is another way to go. These loans could be secured with a deposit, vehicle, boat, or anything else of value that they could get should you default.

Finally talk with your bank. Tell them that you have no credit and would like to establish some. See what products or services they have that would work for you.

Remember that you will be a higher risk and therefore will probably end up paying higher interest rates. But it’s the price of building credit when you have none.

Hopefull these tips have answered that nagging question of how to build credit when you have no credit

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