• Credit Score
• Repairing Your Credit Score
• Fix Your Credit Score Today
• Establish your First Credit
• Credit Score Calculated
• Credit Mistakes – Avoid Making them
• What Affects My Credit Score?
• Rights Regarding Credit Repair

Establish your First Credit

If you want to get into the credit world, the first thing you have to do is to establish your credit. This is actually tougher than it seems because when you do not have a credit, you do not have a credit score and not many lenders will give you credit without a credit score. Yet, you can not get a credit score without a credit.

Lenders usually look for your credit report and score rating to determine your interest rate and give you a credit, but in the absence of this credit score there are other factors which help them make their decision to give you credit.

1. Bank Account: In the absence of your credit, your checking account in a local bank provides all the necessary information regarding your financial status. This is because lenders can not give you a credit card or a loan without any knowledge of your financial background. They need to know if you are capable of clearing their debt in due time.
2. History of Employment: If you are applying for credit and do not have a steady income, then you might as well kiss your credit plans good bye. Having a steady job shows that you are financially responsible and will own up to your debt in due time. The likelihood of you getting a credit decreases if you are unemployed for larger periods of time.
3. Residence: If you have a stable job and a stable place to live in, then you will have no problems in getting a loan. Money lenders want security for the loan that they give you and they can only hold you responsible if they know where you will be staying. Renting a place does not foil your plan, but owning your own place will really put you in the driver’s seat for getting a loan.
4. Other Utilities: Having utilities linked to your name can help you get a credit faster. Anything from Telephone bill to electric bill should be sufficient.

If this does not work then the best thing to do is to go in for a secured loan. A secured loan is one where you have to mortgage something as security to get the loan. If you complete the payment of the debt then you will get your security deposit back, otherwise the creditor will keep your house or other mortgaged item in repayment.