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The world of consumer credit is a complicated one. For example, when applying for a credit card or loan, strangely, having no
credit at all works against you just as bad credit will. Although unfair, someone with no credit has no record of reliably
paying, so lenders tend to disregard people with no credit.
Without credit, it's nearly impossible to do any long distance business.
Available Credit Options
Some smaller credit card companies, like department stores, will give you a card without a credit history. The same with gas
station cards.
So, apply for one of these easier targets.
Another approach is to find a credit card company that will also take into account your overall financial situation:
employment history, housing situation, and how often you have moved. Sometimes that information can tip the balance.
Credit Unions
Credit unions often have more relaxed conditions, so you can look into joining. You don't have to work for a specific company
for eligibility.
Secured Credit Cards
Starting out with a secured credit card may be a good way to establish credit. A secured credit card is simply one with a line
of credit that matches a cash deposit that you give them to hold. These lenders often raise your limit as your credit
record grows, without requiring an increase in your deposit.
Student Credit Cards
If you are a student, a great way of building that crucial credit history is with a student credit card. Many banks will
issue local college students a credit card. However, it's important that the student uses this opportunity wisely.
The Goal
When you do manage to get a credit card, show that you are a good financial risk by ALWAYS paying the bill on time.
Your goal is to build a great credit history, not just get one piddling credit card.
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