Suffering From A Lack of Credit History?

Don't take it personal! You're standing in a line of thousands of people who have not established good credit yet. However, help is on the way. The first task is to firmly plant in your mind the positive things that credit can do. If you're planning on getting a person loan, buying a car, purchasing a home, working in a bank or other financial institution or perhaps finally getting the furniture you've been thinking about for a long time, establishing a line of credit is the answer. All of the above are the things that we all need from time to time. In truth, these pursuits are what makes the financial world spin on its axis.

The negative things that a lack credit can do are many. You can be denied the same access to credit cards, loans and other credit avenues simply because your credit score is too low from not having enough or any at all.

Where To Start

A good place to start is to apply for a guaranteed approval credit card that reports to the credit bureas. Take your time and always read the fine print. This is the only way you can make sure you are finding the best deal for yourself.

Next, fill out any application for a loan or credit card completely. If something doesn't apply put N/A on that line. Include your checking and savings accounts and any accounts you pay for on a monthly basis. Furniture rentals or other

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monthly payments that don't appear on your credit report may sway a lender in your direction if they are not approving or denying based solely on credit scores.

Another option might be to check if the lending institution of your choice has a secured credit card being offered. The interest may be higher but you may be able to revert to an unsecured card within 12 months if you maintain your payments on time.

Merchandise credit cards and department store credit cards are an excellent source to start to establish a line of credit. Make sure it's a store where you can purchase a lot of your shopping needs. This cuts down on your need to apply for too many cards at once. Applying for multiple cards at once can be seen as a negative on your credit report.

If you are thinking about applying for a car loan, it's good to do research on the dealership or car lot that where you want to make the purchase. All dealers will provide a source of financing. Some even may carry their own loan and payment plans. Be on the lookout though and read the fine print on the contract. You don't want to get stuck with an interest rate that is through the roof. This venture is where a good cosigner may come into play.

Use these tips to help jumpstart your credit history and get approved for the credit that you deserve!

Credit Card Resources

Unsecured Credit Cards for bad credit
Reward Credit Cards (good credit required)
Guaranteed Approval Pre-paid Credit Cards
Payday Loan Companies
Secured Credit Cards

About the Author
Liz Roberts is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Bad Credit? Join our mailing list for tips on building and repairing your credit yourself, without hiring a credit repair service. Click here for a list of bad credit credit cards
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Copyright 2009