How to Build Your Credit Score If You Have No History

Having a good credit score is essential to be able to borrow money for large purchases, such as college, a car and a home. Building your credit score when you have no credit history can be difficult, however, because getting loans often depends on having some record of responsible spending. If you're unable to get a credit card or loan right away, there are some things you can do to help you establish a pattern of good spending habits that will build a good credit history.

Instructions

1

Get a preloaded credit card. These credit cards are essentially debit cards that are treated like credit cards by the credit bureaus. You load a certain amount of money on them and use them like a debit card. These cards can help to build your credit without you owing anything to anyone.

2

Utilize first-time buyer programs. As long as you have no outstanding debt, you may be eligible for first-time buyer programs through lenders. You can be approved for a large purchase, such as a car, usually at the price of a higher rate of interest. As long as you can afford the payments, these loan programs will help you build credit quickly.

3

Get a cosigner. If you need to make a large purchase, ask someone who has good credit -- a trusted family member, for example -- to cosign the loan application. This cosigner will be responsible for any mistakes that you make, so ensure that you keep up the payments.

4

Ask a family member to add you as an authorized user on his credit card account. Your credit purchases will help you establish a history, and making payments on time will reflect well on your credit score. Be careful to choose someone who has a good history, because his mistakes could reflect poorly on you and your score.

5

Apply for gas cards or department store cards. These cards are usually fairly easy to get and will help you establish credit history. Try to get one from a store or business you patronize frequently, and make sure you always pay your bills when due.

6

Expand into different areas of credit as you gain credit experience. Once you have a small amount of good credit established, you could get a contract cell phone or buy a cheap vehicle. So long as you keep up your payments, your credit score will continue to rise as you make different purchases and commitments.