Having no credit history is just as bad if not worse than having a bad credit history. However, you are given the advantage to establishing good credit and money-managing skills from the start. You can easily build up your credit history by following these suggestions:
Open a Bank Account. A simple way to start building your credit history is by opening an account at your local bank. Opening a checking or savings account will help you to keep track of your expenses while you earn interest and improve your credit. Only responsible use of your bank account along with paying your expenses on time will ensure a good credit history.
Get a Loan. You can also get a small personal loan through your bank or any other financial institution. Choosing a low-interest, small loan will also allow you to gain a good credit history. Whether you are paying your loan payment or your utility bill, making your payments on time and in full is important when building good credit.
Apply for a Credit Card. Having a credit card is another way to establish your credit history. If your lack of credit has prevented you from obtaining a credit card in the past, then apply for a secured credit card. A secured credit card will give you the same benefits as any credit card, including store and gas credit cards.
Start building your credit history by establishing good financial habits from the beginning. By choosing one of the following suggestions, you can improve your credit status while instilling good habits for the future.