How to avoid getting penalized for not having a credit history?
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » How to avoid getting penalized for not having a credit history?

How to avoid getting penalized for not having a credit history?

Add to Favorites:
If you intend to get help with any purchase or need a loan of any kind, it is important that you have a decent credit history. While credit history is not particularly a complicated task for citizens to build, it can be quite a challenge for those that are new to the place and want to essentially prove their creditworthiness. A good way for making this happen would probably be to implement some good credit building strategies. Eventually, the problem of no credit history will be a thing of the past and you won't have much to be worried about. Signing up for credit cards Many of the banks that have eligibility for allowing foreigners to open bank accounts also allow people to apply for credit cards with the bank accounts. In this way, it becomes possible to build credit history and ensure that the problem of no credit history is not reflected in your account. You should sign up with these cards as quickly as possible to ensure that you are able to easily build your credit score and don't have to be worried about not having any kind of credit history attached to your name. Applying for small loans and making payments Another great way to quickly build your credit records would be to probably apply for some small bank loans and then make payments for these so that you are able to easily establish your credit record. This is quite important and something that you would probably want to consider. Loans can be for any acquisition, which includes cars or even property that might be in your name. It is important to have access to these loans so that you are able to easily pay the money back in installments and get rid of the no credit history problem. Get a co-guarantor Another great option that you could make use of would be to get someone else with a better credit history to sign loans on your behalf. This too, is a useful feature to have, since co-guarantors can ensure that you get spectacular rates on your interest and essentially anything that you might want credit for. These include credit cards and many other similar things. In many cases, it has become necessary to have such a person work with you, as you can easily build your credit history and not work as hard in building up a significantly high score. Thus, there are a number of remedies for the problem of no credit history. At the end of the day, it is up to you to decide on the solution that you would want to go ahead with. Once you are able to decide on the right solution, you shouldn't be as worried about being able to fix the problem. With a decent credit record, you can get access to a number of things. Hence, it is strongly recommended that you do work towards maintain a good credit score. After all, you might never know where this can come in handy.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading