If you don’t have a credit history because you have never taken any kind of bank loans, you can access credit card offers that are specifically designed for those with no credit history. These credit cards are purposed to help you to start building up your credit history.

Why establishing credit history is important?

Many of the most important loans in your lifetime require you to establish credit history and build credit score that reflects your credibility in the eyes of lenders. From car loans to mortgages, from credit card applications to job applications, almost all loan applications and many credit-history-checking applications are requiring you to have a certain credit score.

In term or credit cards, having no credit history will get your credit card applications rejected by many, if not most, credit card issuers. Therefore you need a certain type of credit cards that can help you establish a credit history, so you can benefit from many credit-related applications.

How to establish a credit history for the first time

Here are some tips to help you start establishing your credit history:

1. Check your credit score, even if you think you don’t have any. Believe it or not, you could have a credit score even if you don’t have any credit history. This is an error, and before you open a new account, you need to make sure you are clean. You can get a free credit score annually from each of the three major credit bureaus – Equifax, Experian orTransUnion.

2. Set up and build savings and checking accounts. This is basic but often overlooked step to establish a clean credit history early on. Your lenders want to see stability and activity in your accounts.

3. Understand how credit scoring works. You need to know the credit score basics, otherwise you won’t be able to address things to do and to avoid in building your credit score.

4. “Attach” yourself to someone with good credit. Get yourself added into a credit card as a joint account holder or having someone with good credit to co-sign a loan for you can boost your credit score.

5. Apply for a credit card. Your credit card can be a great way to establish your credit score. Apply for a secured credit card that allows someone with no credit score to benefit from owning a credit card.

6. Mix different credit types. For the best impact on your credit score, mix your credit types, such as getting installment accounts (e.g. car loans and mortgages) and revolving accounts (e.g. credit cards and line of credit.) Obviously, don’t you ever forget to pay the loans on time!

Reference: MSN Money Central.

Credit card offers for no credit

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