How Can I Build Credit If No One Wants to Give Me Credit?

If you have no credit, it can be difficult for you to obtain credit. The reason is that lenders would have no way to determine how well you pay your debts. If there is no history of accounts that you have paid, the lender will be wary about taking a risk on you.

The good news is that it is possible to build your credit. It is important to establish credit so that when you do need to borrow money, you will be able to.

Instructions

1

Apply for credit with a co-signer. Usually, a co-signer is a parent or guardian; however, it can be anyone who is willing to co-sign with you and whom the bank accepts. Whether you can obtain credit will be dependent on your co-signer's credit.

If you are granted credit, it is important that you pay your debts on time. If not, you are building bad credit. You also want to keep the balance at 30 percent or less of the account's credit limit.

2

Apply for a retail loan. If you need to purchase furniture or appliances, you might be able to get a retail loan for it, because qualifications tend to be less restrictive for these loans than for other loans. You will need to visit the retailer you want to purchase from and complete an application.

3

Apply for a secured credit card. A secured card is linked to a deposit you make on the account. Your credit limit will be equal to the amount of the deposit.

You should seek a secured credit card that has no application fee and a low annual fee, converts to an unsecured card after a year of consecutive on-time payments, and reports to all credit bureaus. If the secured credit card you obtain does not report to the credit bureaus, it will not help you build credit.