How to Obtain a Credit History

Applying for financing and being denied due to no credit history is frustrating. You need credit to build a good credit history. However, some creditors won't issue credit to people with little or no credit. The key is knowing what types of loans to get with no credit. Several options are available to help you get credit and obtain a good history. And once you acquire credit, regularly checking your credit history by ordering your credit report is essential to ensuring accuracy and protecting your identity.

Instructions

Building a Credit History

1

Apply for a loan in your name. Talk with a local bank and ask about a small bank loan (no more than $500). Put down collateral to help you qualify such as car title or jewelry. Pay back the loan balance within a few months to add positive credit to your report.

2

Piggyback. Share a credit card with someone who has an established credit history such as a parent of sibling. Request that they add your name to their account.

3

Acquire a federal student loan. Federal student loans are available to people with no credit history. If considering higher education, take out a student loan to begin developing a good credit history.

4

Obtain a credit card. Secured credit cards have helped numerous people establish and re-establish credit. Put down a deposit ($300 to $500) and request a card from your bank or credit union.

5

Use credit cards responsibly. You have to use credit to build a credit history. Keep one credit card in your wallet or purse and use it for inexpensive items.

6

Pay off cards. Don't carry a balance. Pay off your balances every month.

7

Avoid high revolving debts. Set a personal limit on your credit card and stick with this limit to avoid high balances. For example, if you have a $1,000 limit, aim to keep your balance under $200.

Obtaining a Credit History Report

8

Use the Internet. According to the FTC, Annual Credit Report provides consumers with one free credit report a year from each of the bureaus. This is a central website setup by the three major credit bureaus. Visit the site to order and view your complete credit history online.

9

Call the toll-free number. If you don't have access to the Internet, order your free report via telephone. Call 877-322-8228.

10

Request reports by mail. Download a credit report request form from the FTC's website and mail the form to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.