Your reliability as a potential consumer is checked by looking at your credit history. If there is no history then the credit company has no information on your spending habits and will therefore not take a chance on giving you a loan account. On the other hand a bad credit history will be just as detrimental to you. Its a vicious cycle - if you dont have a credit history they wont give you a credit card and if you dont have a card you cannot build up a history. So, one wonders what can I do? There are some options open to you. One option worth a thought is a secured credit card where the lender gives you a credit line against a cash deposit and once you are an established customer, the lender would consider the possibility of increasing your limit against your original deposit. If big lenders won't issue you a line of credit, then opt for smaller ones like a department store or a gas station. Now you can build up a credit history by making payments on time and not carrying forward the debt. The trick is to make sure you get some type of credit card, so use whatever means you have at your disposal. Convince them with your employment details, your housing or whatever other assets you might have. Some card companies also peek into your existing monetary situation and will consider your job status and housing situation and if all is above board then they may consider giving you a card. Credit unions usually don't have very strict rules in order to become a member and once you are a member it would make things easier to obtain a line of credit. Yet another option is a student card where the college issues a credit card and this is where you can really build up your credit history. Use the card wisely, make your payments on time and control spending to suit your budget. These precautions will ensure that you have a good history and the bigger companies will then see you as a potential consumer and not a potential risk. The main goal should be to break out of this vicious cycle and get yourself a credit card, never mind how insignificant. Once you have done that, you must follow a disciplined course to make sure all your payments are made on time. As your credit-worthiness goes up, your credit history slowly starts looking good and soon you're on your way to becoming a sought-after customer and no-one will say 'No' to you no matter how many credit cards you apply for. |
