There are times when we needed cash urgently or wanted to purchase a new car but no cash available at hand. When we don't have the money, there are financing institutions that we can always run to. Yes, we can always borrow money from them to support our needs and caprices but without a credit history, it could be next to impossible.
But what really is a credit history? Why is it so important? Credit history is a record from the major credit bureaus like Experian, TransUnion and Equifax. It is a report of all the transactions that you have made over the years which involve money such as loans and credit card. Entries such as unpaid dues and declaration of bankruptcies are also reflected in a credit history report.
When lenders check on your credit score or history and got the figures they wanted to see that you can already say hello to the car or mortgage you're eyeing for.
Now without a credit history, how can you get started? How will you even establish yours if there is no one who wanted to give you a credit? There is no reason to despair for you will get it in time. It just takes patience and you'll get what you needed. It may take some time for you to be able to finally establish your credit history and score but you'll surely have it so long as you do it the right way.
One of the several ways on establishing a credit history is applying for an unsecured credit cards and bad credit secured credit cards. Some companies require their consumer a one-time application fee so there would be no need to make the yearly fee payment. Before applying for one of these cards, make sure that you know how they work and all the details regarding them.
Once you have your card and starts using it, spend only on things you needed and make on-time payments so you can continuously establish your credit history. You may not have the urge or the need for any loans or feel that you would never ever need and want a credit card but as they say an ounce of prevention is worth more than a pound of cure so as early as now, you may need it or not at present, it would still be better if you start working on your no credit history now. Emergencies of course are unexpected and it would make you feel more at ease knowing that when the urgent need of money arises, you have places that you can turn to; your credit card companies and financing institutions.
It has never been easy starting from scratch but it is a very achieving feeling that you were able to do it out of nothing, like building a credit history from zero. Once you`ve gotten an established credit history, make it a point to maintain its good standing, this way you are confident that you can get approved anytime with no hassles.