You may have just been told you have no credit as you completed the online credit card application process. Trying to get credit for the first time can be frustrating. Many times you will find that you will not be able to get credit if you do not have excellent credit or a good credit score, but it takes getting credit in order to establish credit history. It's a classic catch 22. There are things, though, that you can do to establish a good credit history. These steps should help the best credit card offers land on your doorstep.

Your first steps down the credit road should be resolute to give a good start for your life-long credit history. You need to show potential lenders that you have stability and are able to be trusted with the money they will lend you. It is a good starting point to have a job with the same employer for a few years.

If you don't have a savings or checking account, you should look into opening them at a financial institution. By doing this it shows you have that account in order to pay your bills with. It also shows that you are serious about saving money for the future. Moreover, you may be eligible for a bank credit card sooner than a regular credit card, which can further establish a bit of credit history.

It is also an important step to create a solid bill paying track record. This can be accomplished by creating accounts in your name for utilities such as gas, water, electric etc. You must know, though, that utility companies require a credit check, and you may be required to pay a deposit that generally is over $100. But the utility account is a good step in establishing a good credit history.

You also need to get a copy of your credit report from all three of the major credit agencies of TransUnion, Experian, and Equifax. You may request a copy from them to find out if these reporting agencies have a credit file on you. If they have a credit file established for you look over the file and see if all the information in the file is correct. There are inaccuracies in credit reports and it is up to you to check up on your credit report.

Now that you have taken the primary steps in establishing a good credit history you can be more proactive in building your credit by taking various measures. Some of the things you can do to accomplish this are applying for such things as:

• an unsecured credit card
• a secured or pre-paid credit card
• a credit card with help from a co-signer or other assistance
• a retail or gasoline credit card which is generally easier to qualify for

Whatever you choose to do it will ensure that a credit file is created in your name, which will go a long way in establishing credit history. Once the file has been created you must take the steps to follow some basic guidelines.

• Pay your bills in time- This will show the lenders that you are trustworthy and meet your payment obligations.
• Limit the number of credit cards you have - Just carrying one credit card may not be of much help, but hitting the "apply for credit card online" button every time you see it isn't a good idea either. Having too many cards may make lenders wary as too many cards can sometimes lead to credit being overused. Generally 2-4 credit cards are enough to establish your credit history.
• Limit your credit requests - Only take out credit when you have an actual need for it. You can bring down your credit score eventually and show new and existing creditors that you may have reckless attitude which they do not like.

• Do not max out the credit limit you have - Generally as a rule of thumb you should keep your credit balance 30% below the credit line you have.
• Do not make only minimum payments - Credit card companies may use this action as an excuse to increase your rate since you may be a higher credit risk. This is a valid thing for credit card companies to pay more than the minimum every month.

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Comments

Nancy, 01:43 AM, August 24, 2007
It's good that there are special rules for those who don't know anything about credit cards.Nobody wants to make mistakes at the very beginning.

Louise Allen, 05:12 AM, August 26, 2008
I always imagine that I go upstairs when I improve my credit history.

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