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How to build credit with no credit history | How to | GBR

hi i'm casey editor of go banking rates

calm here to talk to you about a common

problem that even i've had to deal with

and that is building your credit when

you don't have a sufficient credit

history now whether you're a young adult

who has never had to get a credit card

or a loan or you just haven't used

credit in a while when you finally do

want to get your hands on some credit it

can be a very frustrating process you

need a credit history to get new credit

but you can't build a credit history

unless you already have credit so i'm

not sure who made up these rules but

i'll teach you how to work with them

before i describe to you the best way to

go about building a credit history i'll

give you a couple of don'ts to avoid so

that it doesn't become a harder process

than necessary first of all stop

applying for credit cards even retail

cards if one creditor is decided that

you don't deserve a credit card because

you don't have a history chances are

everyone's going to reject you and every

time you send in a new application your

credit score it goes down a little bit

secondly don't bother getting a loan

with a cosigner just for the sake of

building your credit before the

recession this is a tactic that a lot of

people used and it worked pretty well

but these days creditors are much more

interested in you proving that you are

responsible with your money and not just

your parents or your good friends so

getting a co-signed loan or even just

being added as an authorized user on

someone else's credit card are gonna do

little to nothing to actually build your

credit up

so what's the answer I would say it's a

secured credit card secured cards are

great because they prevent you from

getting into trouble with debt since you

provide the cash for your line of credit

up front and then when you use the card

you're essentially using up money that

you've already deposited ahead of time

plus secured credit card activity is

usually reported to the three credit

bureaus before you run out and get a

secured card be sure to keep the

following tips in mind number one ensure

that the activity on your card is in

fact reported to the credit bureaus most

but not all secured cards report your

transactions secondly make your payments

on time the easiest way to ruin your

credit is to make late payments number

three don't max it out try to keep your

credit utilization at 30 percent for the

best results and keep in mind that your

credit limit will probably be pretty

small number four shop around for a card

with low fees some charge ridiculous

fees that just aren't worth it and

number five remain patient it's going to

take six months to a year for a secured

card to build up a credit history so be

prepared to wait a while before applying

for a real credit card or a loan once

it's your card that does report to the

credit bureaus charges relatively low

fees and consistently gets positive

reviews from actual account holders is

the Orchard Bank secured card

unfortunately it's really easy to

destroy your credit with a handful of

bad decisions but building a positive

credit from scratch takes a long time

that means you're going to have to

remain patient and diligent but if you

stick with it you'll be glad you did

for more tips about building credit

visit go banking rates calm and don't

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