3 things you should do if you have no credit history

Select ’ s column team works independently to review fiscal products and write articles we think our readers will find useful. We earn a deputation from affiliate partners on many offers, but not all offers on Select are from consort partners. You may have heard the saying, ‘to get credit, you need to have credit ‘ — which can be pretty frustrating as a recognition newcomer. Most milestones in life, such as buying a house or leasing a car, require a recognition history, but if your credit seduce is low ( or nonexistent ), you will probable find it hard to get approved. The majority of accredit cards besides require some kind of recognition history in club to qualify, with alone a handful of cards made for people with no credit.

There are ways to build credit rating even if you ‘re equitable getting started. Below, CNBC Select reviews three things you should do if you have no credit history and want to start build credit .

1. Become an authorized user

One of the simplest ways to build credit is by becoming an authorized user on a family penis or supporter ‘s credit card. As an authoritative drug user, you can piggyback off the basal account holder ‘s credit and as a result, establish your own credit history. Authorized users besides have zero liability, so this is a low-risk way to build credit. But before you become an authorized user, make certain your family member or friend has good credit and uses their credit card responsibly. You do n’t want to become an authorized exploiter on an score that has debt or former payment history, since those minus actions will appear on your credit history and counteract any accredit build up you plan on achieving. besides, make sure you practice responsible behavior a well. You ‘ll want to make a clear plan for how you ‘ll pay back any purchases you make with the card, so you do n’t risk wracking up debt on person else ‘s circuit board.

Learn more:  What’s the minimum age to be an authorized user on a credit card?

2. Apply for a secured credit card

Secured citation cards are a great room to build credit if you have none. These cards are typically easier to qualify for if your accredit history is poor or non-existent. And you can use a batten poster just like a traditional ( aka unguaranteed ) recognition card to help you establish good credit, ampere long as you practice creditworthy accredit demeanor. A secure poster is about identical to an unguaranteed card in that you receive a credit terminus ad quem, can incur interest charges and may even earn rewards. The main dispute is you ‘re required to make a security deposit in order to receive a wrinkle of credit. The measure you deposit typically starts at $ 200 ( though it can start equally low as $ 49 ) and much becomes your credit restrict. then if you make a $ 200 security down payment, you ‘ll receive a $ 200 credit limit. The Discover it® Secured Credit Card circuit board tops our list for the best secured citation cards by offering cardholders cash back, a generous welcome bonus and no add fees on purchases outside the U.S. — all for no annual fee.

3. Get credit for paying monthly utility and cell phone bills on time

For rates and fees of the Discover it® Secured Credit Card, click here. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff ’ randomness alone, and have not been reviewed, approved or otherwise endorsed by any third party .

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