Are you aware that no credit can be just as bad as bad credit? It seems totally unfair but this is the reality. It's just the way things work in the world of consumer credit. Lenders are very leery about lending money to anyone without a history of being able to repay the debt. They have no way of knowing if you are a good risk or a bad risk.

So what's someone in this situation to do? You can't get a rental car, stay in a hotel or shop online without a credit card. So let's look at a few of the options that can help you establish credit.

Some of the credit options

Think small. While most of the major credit card companies will not give you credit without a prior credit history, some smaller ones such as department stores may give you credit. Another place to try is the gas station credit cards. Apply for several gas and department store credit cards. If you are lucky enough to get one, make sure you use it, but more importantly, make sure you make your payments timely. Your goal is to establish a credit history, not run up a huge credit card bill.

Also try and find a credit card company that will look at your overall financial picture and not focus solely on your credit history or lack of it. Some may also consider your employment situation, how often you have moved. If you score well in these areas they may approve your credit application.

Secured Credit Cards

Secured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured.

Student Credit Cards

If you are a student, then you'll be best off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here is to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns.

When the time comes that you finally get your first credit card, use it, but use it carefully, and most of all, make certain you pay your bill on time.

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This article courtesy of http://ptgnet.com

Copyright John Sanderson - http://ptgnet.com