What if I have no credit?

July 29, 2010
By: Mike Killian

Question: What if I have no credit?

Answer: I assume your question concerns getting a credit card. My best answer for you is to establish a secured credit card through a local major bank. Major banks usually have such a program and what you do is open a savings account with them with the understanding that you want a credit card established and secured by your savings account. The amount required will vary with each bank, but usually it will be at least $300.

Once established, you use the card just like any other credit card, but never above your limit which is set at the amount of your savings account. Repayment is reported to the credit bureaus, and this reporting builds your credit in the fastest method possible. In fact, payment history makes up 33 percent of your score, so a report of on time payments will build a good credit history.

There is one caution, however. Never be late with a payment. A late payment can take your credit score down faster than anything else.

Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.