Building Credit From Scratch
Have little to no credit is both a blessing and a curse. At times having no credit seems like the equivalent of having bad credit and understandably so. You can't get a loan, a credit card or a decent interest rate when someone does take a chance on you. The reason is simple...you're risky! Nobody knows how your going to behave and manage debt, they have no way of telling if they'll ever see thier money again once they lend it to you. So how do you show them that you're responsible or deserving?

You get a credit card! But wait, you can't get a credit card without a credit history and you can't build a credit history without a credit card or loan or some other kind of credit. What to do what to do...

If you're in college, you're in luck! College campuses are one of the easiest places to get your hands on a credit card without any credit history. After reading this search "student cards" and "credit cards students" in one of the google search boxes on this page and see what's available to you. Avoid cards with annual fees and secured cards, these are last resort.

If you're not in college, don't lose hope, there are still many options available to you. One option is to have someone who you know and trust and more importantly, who trusts YOU to add you as a secondary card holder on one of thier existing credit cards that are in good standing. Although the primary card holder is responsible for the bill, you will be issued your own card with you name on it and it will apear on your credit report building your history.

A secured credit card is an undesireable option but an option nonetheless and it's guaranteed! Nobody will deny you a secured card!

It's hard to get you foot in the door but once you do a whole new world will open up to you...whatever you do...don't screw it up!!!!!

Keep your eyes on the prize.

The prize being a score of 650 or better, the magic number that will get you approved for most credit and loan terms.

It takes time but your credit score will increase over time as long as you prove yourself responsible and credit worthy, make yourself desireable to creditors.

For tips on managing and maximizing your credit score, read "Raising Your Credit Score" and to understand how your FICO score (credit score/rating) is calculated read "Fico Breakdown"