How to establish credit from no credit history

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » How to establish credit from no credit history

How to establish credit from no credit history

Add to Favorites:

Having no credit history could be tough and trying while applying for credit cards/loans. You need to have a good credit history to persuade the lender into agreeing to part with his money. How could you establish credit when nobody is inclined to lend you? Lenders can be very thorough and might wish to look into your past credit record to support your claim for a first time loan. So it becomes significantly necessary to establish a good credit record.

How to establish good credit? You must understand what your lenders are looking for. Taking certain measures could help achieve your goal of establishing credit.

You can start off by opening a bank account. To open a bank account you do not require a past credit record. You just need to furnish proof of identity, residence and an account holder who can vouch for you. Though your bank account is not recorded with any credit bureaus, it may play a very important role when a lender deliberates to sanction a loan.

Operating a bank account to your credit shows that you can handle your money well and will also make a great impression on your lender. Though bank accounts do not establish your credit record, lenders will always use this information to decide whether you could be trusted.

Maintain a good business relationship with the bank will perk up the possibilities of you getting a loan/credit card through them. Your bank is the place where the lender will verify your credentials first. So the good relations you have developed with your bank will stand in good stead while applying for a loan.

Your employment history is an aspect your lender could look into. They would check the frequencies of your job changes, or number of times you have remained unemployed, etc. A stable job can increase your chances of getting your loan/credit card, etc., approved.

Lenders will also verify how frequently you change your residence, whether you own a house or rent. It will be immensely helpful to own a home singularly or jointly. Owning a home goes a long way in helping you to get credit.

Your credibility can be strengthened by having many utilities in your name. You do not need a credit history to get cable, telephone, gas or electric service. Having these services in your name can be of great help when applying for credit without a credit history.

Like bad credit history, no credit history can also be great a deterrent in all your business transactions. So it becomes immensely important to establish good credit history.

Creating a good credit history may take a lot of time. It is not possible to achieve a high credit score in a short period. Factors like your money transactions, length of the credit period, etc., contribute to make up your score. So it is not only essential to establish credit initially, but also it is important that you improve it by doing the proper things to sustain a good credit.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading