The content is accurate at the time of publication and is subject to change.
Everyone starts from the beginning. However in this world of credit siring up a takeoff flight to the sky of today`s credit-based market economy is not an easy task. It takes a good credit for one to avail a credit card for instance. Of course, credit card issuers and other lenders are taking a lot of care with their businesses thus applicants` records are undergoing scrupulous assessments before their request is granted or denied. Thus for first timers who do not have a credit history yet, establishing credit would not be easy. Why? It is because not many lenders or companies are willing to give any.
It is not that they are being unfair or discriminating. We need to take into consideration that lending is their business and we are talking about money here so credit companies and lenders need to at least have an overview of your credit worthiness to know if you are a risk or not. So if you cannot present them your crediting records from the past and present, since you do not have one, you might want to check on the other factors lenders are going to look for if you do not have a FICO score yet.
Lenders may take a browse on your employment history. Most of the time having a stable job can help you convince lenders to trust you with their money. Records of unemployment however can hurt your chances to be granted with a credit.
Another factor lenders may look at is your type of residency. If you fall under the category of those who have no permanent address, your chances of getting the credit are shaken. Being a renter or a home-owner also matters. What will help you in this area is having at least a stable residence also owning a house can give you better chances.
Having bank accounts can also help first timers. This does not get reported to any of the credit bureaus nonetheless having an account history is most likely to be reviewed by lenders for first timers. Your checking account at your local branch for instance will give lenders an idea of how you handle money thus opening one can be helpful for first timers. This step could actually do you good in one more way, having active bank accounts in good standing of course, chances of getting credit or loan with them is going to be improved if you have established a good relationship with them. Thus doing a good business with a bank must be a great help for first-time-borrowers.
Getting retail cards can also help establish a credit record. It is more likely for retail stores to take chances from first timers that major credit companies. This retail card however must be a jumpstart for starters to create a good credit history. By doing so future plans for applying to any of the major credit companies are given bright chances.
Another thong one can resort to, although this is never an ideal (you may still add this one to your last resort list), is having a secured credit. When we say secured credit thus entails as asset is at stake once the payment was not made. The lender can take the asset like your car or house to pay for the debt you failed to settle.