Building your credit history

You need to have credit to get credit. Here are some easy ways to begin building a solid credit history:

• Open a savings or checking account. This is not actually credit, but it's necessary because it reports that you have money to repay new credit.
• Ask someone with good credit to co-sign a small managable loan that you will then in turn pay back instantly to begin to establish a pattern of credit. When you receive the first bill for the loan, pay the entire loan off immediately. You may find that you need to repeat this until you are able to get a loan without a co-signer.
• Consider obtaining a "secured credit cards." Some financial institutions allow you to deposit an amount of cash and then use a credit card to charge up to a specific percentage of the cash in that account. However, make certain you are aware of all of the fees associated with this type of account.
• Get a revolving credit card. These are often obtained through a local retailer or gas station. They do not carry monthly balances and therefore they are easier to aquire.