How to get credit when you need credit to get credit?

Carving out your credit niche isn’t as easy as it used to be. You can thank greedy Wall Street bankers and mortgage brokers that triggered a financial crisis and real estate meltdown for that. These days individuals just starting out in the world of finance face a tougher credit environment than people in their shoes just a couple of years ago. But it's tough to get ahead without the responsible use of credit with your financial arsenal. The hardest thing could be that you’ve no credit. When you have this problem, you are just an unknown risk to everyone. That means your credit is going to be hard to get or expensive.

Resource for this article: How do you set up credit whenever you need credit to get credit by Personal Money Store

With personal responsibility, establishing credit

Credit is a “what came first” question. Was it really the chicken or the egg? How do you get credit without credit? According to Helium.com, young individuals new to credit generally need a co-signer to get either a credit card or a bank loan. You can quickly show responsible credit handling this way. You'll want credit inside your own right sooner or later. Payments have to be made on time always. Late or missed payments will hurt the credit score of the co-signer. This is very important if you got your credit card with help from your co-signer. Always clear the balance in full each month and never pay interest. Simply put: if you can't afford to buy something, don't use your credit card.

Credit cards that are secure

If you need to establish credit and a co-signer is not accessible, rent an apartment and pay all your bills on time. A difference can be made by just paying all your bills on time. Then try getting a secured credit card. A secured credit card might be the only way to get credit. A secured card needs a cash collateral deposit that becomes the credit line for that account. For example, if you put $ 500 within the account; you can charge up to $ 500. You might be able to add to the deposit if you need to get more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.

Don’t get burned — shop around

A secured credit card is like prepaid debit cards with one big difference: secured credit cards can help you build your credit. It was reported by Wallet Pop that while these cards come with annual fees, some are available for only $ 25 or $ 30 per year. There isn't a reason to pay this so shop around. Also, be sure to read the fine print about other fees to make sure you’re not getting suckered into a “fee harvesting” card designed to nickel and dime you to death instead of help build your credit.

Discover more data:

helium.com

helium.com/items/1878270-best-ways-to-establish-credit

bankrate.com

bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

wallet pop

walletpop.com/blog/2010/06/29/choosing-the-best-credit-card-for-your-age/