How to establish a new credit history from scratch

If you have NO credit history, if you never had credit on your name before, then you are in the same boat as a person with bad credit. In the credit world, NO Credit is BAD Credit...

Credit History

In this page you will learn:

  • How to establish credit
  • How to build credit from no credit
  • Credit cards you can use to establish credit
  • Loans to establish good credit
  • How to establish good credit with or without a secured credit.

Let's get started...

To establish good credit, one of the most important thing you need to have is a stable bank account. Yes... You should have a savings and a checking account.

When you maintain a stable bank account you are demonstrating to your creditors that you have the ability to manage and save your money.

The best way to establish credit : Take out a loan!

The best way to establish credit is to take out a small loan from a local bank or your credit union. You may think you don't need the money, why borrow it? Let me tell you my friend, even if you have no immediate need for that money, try to borrow it anyway.

Another way to establish credit : Apply for a credit card from a local department store

Credit reporting is important... Before you apply for credit with a creditor, you need to make sure that the creditor will report your credit history information to at least one of the credit bureaus.

If your creditor does not report credit history information to the credit bureaus, don't bother applying for a loan or credit card with them because that loan or credit card will not help you re-establish your credit history.

IMPORTANT: Make sure you ask them "Do you report to the credit bureau?"

Another way to establish credit : Have discipline, don't spend the money you borrow

You can use the same money you borrowed to make payments on the loan. Make the loan payments on time and consider the interest expense an investment in establishing a good credit history.

It is it a credit card you applied for, buy something on it or pay a bill, then make your monthly payments on time each and every month.

More Tips on establishing credit on the message board.

Do you have a good tip? Post it below.

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All Comments (4)

Patricia D. says...

Cash Advance Fees, Applying for credit? beware

Find out if there is a fee for cash advances.

Cash Advances can be a killer.

Larry says...

Applying for Credit? Read The Fine Prints!

When you apply for credit, read the agreements carefully, all these little fine prints, then can hunt you in the long run.

Don't just sign the credit appliction without knowing what you're signing.


Make sure you notice the interest rate

Make sure you notice any monthly fees that are being proposed to you.

Jane W. says...

Get credit in your own name Married or Not!

Always get credit in your own name whether you are single, married, separated, or divorced.

It is allways a good idea to get credit in your own name; you are entitled to a credit file in your own name.

Cre says...

Do this when applying for credit

If you are applying for credit, to establish a credit history, if you know you have some items on your credit report that are negative and you have been denied credit because of them, remember to submit a "Statement of Circumstances" along with your application.

This should help you a little.

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