Don’t Have Credit? Don’t Sweat It
If you have not built a credit history, you will find that it will be difficult to get a loan, a credit card, and possibly even a job or an apartment. Establishing a credit history can be tricky, but it is possible. Here are some steps you can take to build your credit history.
Apply for a secured credit card.
If you have no credit history, a secured credit card is a likely starting point. You are given a credit card backed by a cash deposit that you make up front. The amount of the deposit is your credit limit. Use the card to make purchases and then make timely payments when the bills are due. Your cash deposit is collateral should you fail to make a payment. While a secured credit card is not meant for extended use, it can help you establish a solid credit history.
Get a co-signer for a loan or credit card.
You may be able to have a parent or family member co-sign for a loan or a credit card. The co-signer must understand that they would be responsible for any payments that you fail to make. Of course, you should make all payments on time because it will help you to establish sound credit.
Be added as an authorized user on someone else’s credit card.
Another easy way to build credit is to become an authorized user on a parent’s or family member’s credit card. You will enjoy the benefits of building credit while not being legally obligated to pay for your charges. If you do make any purchases using the card, you should make your payments on time.
Get credit for rent payments.
If you are making rent payments, use a rent-reporting service to add them to your credit report. Not all credit scores take rent payments into account, but some do. Paying your rent on time can help to build a positive credit history.
Take out and repay a car title loan.
If you own a vehicle, you may be eligible for an auto title loan. If you have considerable equity in the car, or you own it outright, you can use it as collateral for a loan. Car title loans are easy to obtain and offer quick access to cash. Embassy Loans has helped tens of thousands of customers receive money, often within an hour of making their application. Once you repay the loan, it can help you build your credit history and credit score.
