How do I establish a credit history?

Many people just starting out have no credit history and may find it tough to get a loan or credit card, but establishing a credit history is not as difficult as it seems.  Usually local stores are more willing to extend credit to someone with no credit history - so apply for a credit card issued by a local store.  Another alternative is to apply for a secured credit card.  This requires you to open and maintain a bank account or other asset account at a financial institution security for your line of credit.  In other words, you put up the money first and then the credit company allows you to borrow 50 to 100 percent of your account balance.   Also, you might ask other people who have an established credit history to co-sign on an account.  By co-signing, the person is agreeing to pay back the loan if you don’t.  However, only as a last resort would I recommend you ask someone to co-sign a debt for you.

You will also want to repay any debt promptly.  A positive credit history is an asset, not only when you apply for a credit card, but also when you apply for a job or insurance, or when you want to finance a car or a home.