How to Start with No Credit History and Build One

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 Start with No Credit History and Build One

How to Start with No Credit History and Build One

The content is accurate at the time of publication and is subject to change.
If you do not have a credit history, it is virtually impossible for you to get a loan, job, credit card or any other benefit which checks for a person's creditworthiness. It is very possible to have no credit history or a bad credit history. But with some planning, resolve and clever moves, you can improve your credit history. It might be strange to hear but some people take loans only to improve their credit history. Once they get a loan based on a salary slip or any other criteria, they can improve their credit history very fast by paying monthly interest payments diligently and ensuring that they are consistent in their payments. It is hard to get credit card if you have no credit history. But you can request for an american express card where there is not revolving credit or a secured credit card in which you are taking the card by securing another asset. Although this is risky, if you pay your monthly payments on time, you can improve the credit history very quickly. You can open a checking account or a savings account and maintain some minimum balance. Most lenders will look at your account report to see how much money there is and how you manage the money. Similarly an account with a long history helps improving your credit score and hence one shouldn't close down old accounts unless it is really justified. There are other smart ways of building upon on your credit score. One of them is to ensure that your telephone bills, electric bills etc. are all in your name and that you don't default on payments of any of these. You should always do them on time to ensure that there are no bad remarks on your credit history. Late fee and missing on monthly payments often brings down your credit score. Applying for gas station cards, store cards etc. in cases where the stores report to the credit bureau can be a smart way of building your credit history. By making transactions on those cards, which are easier to obtain than the normal credit cards, and then paying off the balance before time, you can ensure that your credit score improves fast. You can also ask your parents or guardian who has a good credit score to add your name to their cards so that the history reflects on you as well. Taking up a cosigner who has a great credit history can be a great advantage to improve your credit history. Many credit card companies go to college campuses and then advertise their cards. Since you are a student you can get a credit card with very low credit limit. However, if you take your card and keep making monthly payments on time by using the card, you build a decent credit history on which you can build on later by taking another card with higher limit and continuing to be consistent in paying off the balances.

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

Related Research:

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!