Tips To Get Your First Credit

In order to start building up credit, you have to spend credit. But how do you get that initial credit to get you started. It can be difficult to secure credit if you do not already have some. Still, there are several options you can look into if you want to start building up your credit without having a previous credit history.

The first thing to look into is your local bank. Open up an account and start using it. Deposit money when you can and start accumulating some savings. Once you have a large enough sum in a savings account, a bank will be more likely to give you credit. This is also a good practice for financial responsibility. It will teach you how to save money and how to start budgeting your expenses.

Once you have earned some trust from a bank, you can apply for a secured credit card. A secured credit card is when you put down a deposit in order to get the card, and you are unable to withdraw the money for a period of time. Typically they do not stay like this though, and you'll be able to change it to an unsecured card in the future, and even withdraw your initial deposit. These cards typically have lower credit limits, but they are a good place to start.

Another type of card you can apply for are store cards. These can be a good way to build up credit, but do not just go for any card. Get store cards from stores you shop at a lot to make sure you are getting the most out of your card.

If you can not seem to get a card anywhere, you can try putting different utility bills under your name. By putting something like the rent or your cellphone bill under your name, you can show that you are responsible when it comes to paying bills on time. This will make it more likely for someone to give you credit if they have proof that you are responsible.

Lastly, if none of these options work or if you are in more of a hurry, you can try getting a cosigner for your loan. This is when someone with good credit signs a loan with you, and is also responsible for the repayments. If you fail to repay the loan, the cosigner will have their credit score hurt. A lender will be more likely to loan to you if there is someone with a more proven track record being held responsible.

Getting your initial credit can be difficult, but not impossible. With a little persistence  and some patience, you should be able to get your hands on some credit eventually. Once you have your first credit, make sure you use it and pay it back on time. This will help you to build up more credit for the future.

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