Establish Your Credit The Smart Way

Online, February 21, 2011 (Newswire.com) - For young men and women just getting their start out there in the big, wide world, getting credit can be tough. Most creditors want to see a solid credit history before they give you a loan. But how do you develop a credit history when must first have one in order to get credit?

It's a frustrating process. But don't jump on the first wagon that passes you by. Make sure you make the right moves - remember: your credit history, and everything it contains, will follow you throughout your life.

The easiest way to get started with credit is to get a parent, grandparent or guardian to co-sign the personal loans with you. Another option is a co-signed credit card. Either way, be sure you pay your bills on time, or not only will you be in a bad situation, you'll put someone else in a bad spot, too.

You can also get a secured credit card. The cards work like this: you make a deposit to the issuing bank, which then gives you a credit card with a limit in the same amount. That protects them, and will give you a credit history. A word of warning: be sure to check the bank out first. Some of those institutions issuing secured credit cards have bad records with the Better Business Bureau, so do your homework.

You can also get a small, secured loan. You deposit money with the bank as collateral, and they loan you that same amount. It seems pointless, but it will help you establish credit.

Once you get your credit history established, keep in mind that you may be able to get a fuel or department store card before you can get a credit card. This will also help develop your credit history.
However you go about it, just remember that your credit history can be your best friend or your worst nightmare - the choice is up to you. Make wise choices.