Establishing credit may seem like a catch-22 — you cannot get credit because you have no credit history. Many lenders in fact will consider a nontraditional credit history if you have limited or no credit. Having open and well managed Checking and Savings accounts help. Paid receipts and canceled checks for utilities (especially telephone), rent, and car insurance payments, under your name, made consistently, establishes a pattern of payment. In addition, there are other things you can do to start establishing credit:

Check your credit file
Before you submit a credit application, or, if you have already applied and were declined, obtain a copy of your credit history to make sure it is correct because too many credit card applications or rejections within a short period lowers your credit rating. Contact any of the 3 major reporting agencies to order a copy of your credit report for free or a small fee: Equifax, Experian, or TransUnion. Note: Too many credit inquiries also have a negative impact on your rating so it is recommended you check your report online using Experian's Credit Manager because it will not lower your rating.

Obtain a secured loan
If you have a passbook savings account or can open one, ask the bank to give you a loan against that money. They keep your passbook until the loan is paid in full. Make sure the bank reports on the loan to the credit bureau.

Qualifying for specific card offers
Use our Customized Card Finder to list all credit cards you are most likey to qualify for.

Student credit cards
If you are a full-time college student, apply for a Student Visa or MasterCard. Many card issuers are more likely to approve education minded individuals because on average they tend to be more responsible.

Get a secured credit card
Banks, in exchange for a sum of money deposited with them, give you a credit card. Use it and make your payments on time to improve your credit rating quickly. Here is a list of current top secured credit card issuers.

Become an authorized card user
If you do not qualify for credit on your own, ask someone with a well established credit history (like a parent) to apply and list you as an authorized user. Tell them to keep and use the card in place of their normal one for the next 3 to 6 months. Afterwards they may remove you as an authorized user once you are able to qualify for your own card. One big advantage is they may qualify for cards with better rates, rewards, benefits, services and fees.

Use your credit wisely
To start building your credit history, use your card to make purchases, but do not go over your credit limit, and pay your bills on time. Pay more than the minimum payment due each month, or all if you can.