Whether you are just starting out or simply trying to repair your record, you might be wondering how to get credit. Here are a few simple ways to get credit for the first time or during the rebuilding stage.
Get a Co-signer with Good Credit: There's an old saying about the lottery: you can't win if you don't play. This is quite - true in terms of credit, as well. You cannot get loan if you never apply for a credit card or loan. If you currently have zero credit or it is bad, you may need a co-signer with a good record to apply with you. This co-signer adds their name to your card or loan, meaning if you fail to pay your bills they are as responsible as you are.
Apply for a Secured Credit Card: If a co-signer is not available to help you get a loan, you may be required to put down a security deposit before you are given a card. Usually, this amount matches the same amount of credit you are requesting. If you fail to make your payments, the credit card company will take what is owed out of your deposit and report it negatively to the reporting agencies.
Start good Financial Habits: The better financial habits you keep now, the more likely you are to be offered and approved to get a loan later. This means paying all your bills on time, paying off as much of your debts each month as possible, and not reaching your maximums by routinely utilizing less than 30% of your limit.
Now that you are empowered with additional information, go out there and take action to start building your financial life.