Build Your Credit
From Car Loan Wiki
If you need credit, but have no credit history it's hard to get approved. Lending institutions look at the risk involved in lending to someone to determine if they approve them or not. Without a credit history, the lender has nothing to base their assessment on besides your income. It's important for lenders to see how you are with credit, and see anything that could be a risk for them to lend to you. There are several ways to build credit, and get a good credit history started. Let's take a look at some of the ways.
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Ways to Build Credit
Secured Credit Card
A secured credit card works like a debit card. It's linked to a bank account and you can only spend as much as you have put in the account. The main difference of a debit card and a secured credit card is that with a secured credit card your use of it is recorded on your credit report, helping you build your credit.
Get Added as an Authorized User
Get someone you know, like a parent, that has good credit to get a credit. Have them get a credit card and add you as an authorized user. This means that any use of that credit card, by you or the original card holder, will be recorded on your credit report. Use the card rarely for small purchases and pay the balance in full and on time. Or simply cut the card up and don't use it at all, either way this can help you build credit.
Open a Checking Account
Perhaps one of the simplest ways to help establish credit. It may not make a very big impact, but a long lasting checking account can represent stability, which is a big plus with creditors.
