What Does It Mean When You Have No Credit Score
Before we go any further, we would like to talk to you about the importance of credit and what it can mean for you as a young professional. Without a credit history, it is likely that you will face many obstacles such as getting a job, an apartment or even a credit card.
In this post you will find helpful tips on how to establish your own credit history and overcome some of the most common barriers without building up any red flags!
Hopefully with these few changes in your life, our words of advice will be able to help aid in the process of moving from someone who has "No Credit" into someone who has established their own "Credit History.
In order to get your credit started, you need to find a lender willing to work with you. Here are some tips for finding lenders who have been helpful in establishing new credit in the past.
1. Call your local bank or credit union and see if they offer personal loans or unsecured credit cards. These types of financial products may be easier to obtain because they can be applied for over the phone and approved quickly, in most cases.
2. A retail store such as Target or Walmart may offer a secured credit card that is accepted at their stores only or at other major retailers that have agreements with them like Kohl's, Costco etc.
3. A loyalty program may offer a credit card that is accepted at specific stores. Find out if the store you shop at such as Gap, Old Navy, Banana Republic or Athleta has a loyalty program and inquire about the possibility of signing up for it.
4. Lastly, you can sign up for prepaid credit cards that don't require credit but charge fees for using them like RushCard or Liquid Card
Once you have found a lender willing to work with you, be sure to read over the contract carefully and ask plenty of questions on what does and does not come with signing up for this financial product before moving forward.
Once you have a financial product in your hands, the next step is to use it.
- Spend the amount that you are comfortable with and pay off the full balance before the due date each month.
- If you get a credit card, follow the same steps by only spending what you can afford to pay off in full every month on your credit card statements as well.
- Paying off your financial products each month is important because it will help build your credit history.
- Even though the lender may not approve a new loan in the form of a credit card or loan, there may still be other types of loans that you can get approved for. Your local bank or credit union will likely give you helpful information and show you how you can apply for other types of loans, such as loans to consolidate your high interest debt or student loans.
Any information contained within the contents of this blog are opinions and suggestions of the writers and do not necessarily reflect any policies or positions of the credit union. Any reference made to products or promotions are not guaranteed at any time. This information is not intended to be considered financial advice. It is provided for your education only. Community 1st Credit Union is Federally Insured by the NCUA.