How To Get a Great Credit Card, Even With No Credit History

By Erin Hurd If you don’t have much of a credit history, or you don’t

By Erin Hurd

If you don’t have much of a credit history, or you don’t have any credit at all, there’s no “easy” button to push to qualify for the best credit cards. But it also doesn’t have to be as hard as you may think.

Around 1 in 8 Americans (13%) say they don’t have any credit history, according to a NerdWallet survey. Many of them have tried to build a history but aren’t making progress or aren’t sure where to start.

Here are three steps to get on track to good credit and great credit cards. These steps won’t necessarily work for everyone, especially those with damaged credit. But it’s a path worth taking for those with little to no credit history.

1. Get a Credit-Builder Loan

Though they’re not widely advertised, credit-builder loans are a simple tool to demonstrate good credit habits and start beefing up your credit profile.

With a traditional loan, the lender gives you money upfront, and you pay it back in installments. A credit-builder loan works in reverse: You pay the lender monthly installments, then you get the money back at the end. You’re essentially lending yourself money, and because the payments are reported to the credit bureaus, it builds your credit.

>> Plus, from Robert Powell’s Retirement Daily on TheStreet: Where Will You Live and Work in the Future?

Even if you’ve been turned down for a personal loan in the past, you have a good shot at a credit-builder loan. The lender isn’t putting its own money at risk, and it holds your money in a savings account until the loan is fully paid. When the lender is protected like that, it can make these loans available to people with thin credit or no credit.

Source Article