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


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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?

Updated: November 14, 2018

The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
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