How to Build Credit When You Have None

building creditIf you have absolutely no credit or no credit history, you could find it pretty difficult to apply and be approved to receive a credit card. The most likely reason reason you don’t have credit is because you’ve just turn 18. At the age of 18 you are legally allowed to be a new owner of that shiny credit card you’ve always dreamed of.

Wielding a credit card at such a young age can be dangerous. Young people are usually unaware of the dangers of credit card debt, and the ease of being able to purchase nearly anything you want, instantly, without cash makes that danger much more clear. However, establishing credit at a young age is easier than doing it later in your life. On top of this, credit will help you further down the road by allowing you to take out loans, create better opportunities for you in the job market, let you purchase/lease a car, as well as eventually allowing you to purchase your very own house. Ah, the power of the credit card is a wonderful thing.

How to Get Your First Credit Card

If you just aren’t able to get a credit card, whether you haven’t reached the age of 18 yet or the credit providers don’t trust the fact that you have absolutely no credit history, there are several steps you can take in order to make yourself seem more dependable when it comes time to getting your first credit card.

First, you will want to create a savings and checking account at any bank. While having either of these accounts won’t be helping you build your credit, they do make you look more liable for yourself in the eye of creditors. Having a savings and checking account are also beneficial, as you can build interest on top of the cash you deposit in your savings account and instantly purchase items with money in your checking account without the need for cash in your pocket.

Credit Cards with a Co-Signer

An option that will allow you to build instant credit is to get someone, most likely a parent, with excellent credit to co-sign on a minute personal loan with you. As soon as you start making payments back on the loan, and making payments on time, you will be redeemed with credit from your co-signer.

This is one of the quickest ways to build credit as it’s like a very credit-worthy person is vouching for you. If you are able to apply for a small personal loan, yourself, and can pay installments back monthly, you’ll also find yourself on track to building good credit.

Applying for a Store Credit Card

Another route you can take is to apply for a store card. These cards are like credit cards, but they can only be used at that specific store. Some cards can actually be used anywhere, but you would have to read the conditions before you apply to make sure. While it isn’t the fastest way to build credit, it does give you some, and if you have just turned 18 you probably don’t have any. Prepaid credit cards are a similar choice, building small amounts of credit on pre-charged cards.

Student Credit Cards

One of the easiest credit cards to get at young ages, even with no credit history at all, are student credit cards. These types of cards are found all over big college campuses, usually set up at booths where students can sign a form and be “instantly approved.” While it is a good choice for those with no credit, these types of credit cards are dangerous.

Student credit cards have low credit limits that are easy to break with extremely high interest rates and penalties for those that don’t make payments. Student credit cards rely on the fact that mom and dad will take care of any of their children’s credit problems. Don’t put your parents in a difficult situation if they do not have established credit or are in bad financial shape.

Start Building Credit!

Once you’ve got enough credit built up that enables you to get a proper credit card, start using it! Stay away from the credit limit and pay off all the money charged to it before the payment deadline is due each month in order to keep building your credit and avoid credit debt.


  1. Trackback by Blogsvine — June 8, 2008 @ 1:56 am

    How to Build Credit When You Have None…

    Good advice for those who just turned 18 looking to build their credit…

  2. Trackback by — June 8, 2008 @ 1:59 am

    How to Build Credit When You Have None…

    Want to build credit when you just turned 18? Here’s how. It’s not as hard as it seems… just keep everything paid off !…

  3. Comment by Dffd — June 8, 2008 @ 2:42 am

    also with a building credit you dont need to have large bills. just buying one or two things a month and paying the bill on time is all it takes. If you think that you wont be able not to buy in a store dont take the card with you.

  4. Pingback by The Difference Between Personal and Business Credit Cards | The Build Credit Blog — June 28, 2008 @ 8:15 pm

    [...] and other goods needed to live your life comfortably with personal credit cards in order to build up personal credit. A good personal credit score on your annual credit report can help you get better credit account [...]

  5. Comment by Louis Kely — September 25, 2008 @ 4:17 am

    Bad credit cannot create a good impression on lenders. At the same time lenders hesitate to provide funds and disqualify their loan applications. But bad creditors with the help of No credit check loans can easily access loan amount. This scheme is meant to support the people when they confront financial disruption and rescue them from such disputes. All sorts of people like salaried persons, self-employed, venture owners, housewife, cultivators, professionals etc. can approach and approve the loan. They can access the amount that suits their income and repaying ability.

  6. Comment by Establish Credit — November 24, 2008 @ 7:34 pm

    Establishing new credit can be done with the help of your personal banker or credit union representative. To put yourself in the best position for approval, maintain depository accounts (checking, savings or both) in good standing. This can help you establish the “internal credit” necessary to encourage the bank or credit union to give you limited credit.

    You should also look to that same institution when you are preparing to buy a car. They just might give you the best rate.

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