How To Build A Credit History

You can’t get credit unless you have a good credit history, but you can’t get a credit history without getting credit. It just doesn’t seem to make any sense at all. Lenders won’t loan you money if you haven’t had some credit in the past, so how can you build a credit history if you’ve never gotten a loan?

One of the first things anyone seeking to get approved for a loan or credit card should do is open a checking and savings account. While having a bank account won’t get you a loan, lenders consider them as a really good sign of stability.

Another good way to establish credit is to have someone add you to their credit card account as a joint account holder. You can also have someone co-sign for a small unsecured personal loan and make sure that you make all the payments on time.

However, keep in mind there can be a bad side to being added as a joint account holder and having someone co-sign for you. If the person adding you to their account has had problems paying the payments, it will also reflect on your credit. And, if someone co-signs and you don’t make the payments, they’re required by law to pay them for you.