How do you set up credit whenever you need credit to get credit?

Getting credit is apparently really hard. You can thank greedy Wall Street bankers and mortgage brokers that triggered a financial crisis and real estate meltdown for that. These days individuals just beginning out in the world of finance face a tougher credit environment than people in their shoes just a couple of years ago. It is hard to get ahead when you are behind. The hardest thing may be that you’ve no credit. You are an unknown risk when you don't have any credit. Getting credit is going to cost you some money and will be hard.

Article source: How do you set up credit when you need credit to get credit by Personal Money Store

Finding a way to get credit with personal responsibility

"What came first" is the credit question. Was it first the chicken or the egg? How do you get credit without credit? As outlined by Helium.com, young people new to credit generally need a co-signer to get either a credit card or a bank loan. This works out so you quickly show responsible credit handling. Because faster rather than later you are going to want to have credit in your own right. This means always making payments on time. Late or missed payments will hurt the credit score of the person who was willing to step in as your co-signer. If you got your credit card with help from your co-signer, it is important. Never pay interest by paying each month. Don't use your credit card if you can't afford something.

Getting secured credit cards

If you need to set up credit (which you do) and a co-signer is not accessible, rent an apartment and pay all your bills on time. A difference can be made by just paying all your bills on time. Then try getting a secured credit card. Bankrate.com reports that a secured credit card might be the only way to establish credit. A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $ 500 in the account; you are able to charge up to $ 500. You might be able to add to the deposit if you need to get more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.

Shop around to avoid getting burned

A secured credit card is comparable to prepaid debit cards with one big difference: secured credit cards can help you build your credit. Wallet Pop reports that when these cards come with annual fees, some are available for only $ 25 or $ 30 per year. Shop around because there isn't a reason to pay this. Also, make sure to read the fine print about other fees to make sure you’re not getting suckered into a “fee harvesting” card designed to nickel and dime you to death instead of help build your credit.

Discover more about this topic here:

helium.com

helium.com/items/1878270-best-ways-to-establish-credit

bankrate.com

bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

wallet pop

walletpop.com/blog/2010/06/29/choosing-the-best-credit-card-for-your-age/