How to Establish First-Time Unsecured Credit

Establishing credit from scratch can prove challenging because creditors prefer a credit history when reviewing your application. But even if you don't have a credit card or other type of credit line, you can establish credit and receive an unsecured account. Secured credit like an auto loan is easier to acquire with no credit history because the car serves as collateral. But if looking to attain an unsecured credit line, consider your options.

Instructions

1

Get a bank account. Credit applications ask and request information pertaining to your personal bank account. Open an account first and then apply for a credit line.

2

Get your finances in order. Secure steady employment prior to requesting an unsecured credit account. Applications also inquire about employment and yearly income. Lack of income can stop your efforts to establish first-time credit.

3

Select a nonbank unsecured credit card. Apply for credit with a department store or gasoline company to begin establishing your credit history. You're issued a credit card if approved for the account. Nonbank credit cards are easier to acquire with no prior credit record.

4

Attach your name to someone's major credit card. Ask your parents or another person with a good credit history to help you establish first-time credit. If agreed, they'll call up their credit card company and add your name and personal information to the account. You become a joint or authorized user on the account. In return, you receive an unsecured credit card in your name.

5

Pay on time and manage your debts well. Stay aware of your payment due dates and never charge more than what you can pay off in a given month. Timely payments and low debts help you build and maintain a good rating.