This is a tough one. Along with no credit, I find some people have a combination of the two: a little bad credit and then no credit at all. If you’re one of those, refer to the post before this about bad credit and this one.

The best thing you can do about bad credit is to pay off what’s outstanding. The best thing you can do about no credit is to go out and get some!

Most banks will give you a credit card if you can back it up with some cash. For example, deposit $1000 and they will give you a card for $1000 associated with your social security number. Use the card to build your credit. Once you have established basic credit that way, stores will give you credit cards and gas stations will as well.

Just make sure you pay your bills on time every month because interest rates on these cards can be very high and especially at this time when you’re building credit you don’t want to add to the negative side of your profile.

While it’s hard to say how long it will take to establish credit this way, it is a foolproof method to ensure that you build a strong history that gets better the longer it stays in your name and paid on time. Just be sure to then monitor your credit to ensure no one steals your identity!

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