What To Do if You Don't Have a Credit History

If you prefer to pay for things in cash, you may not have a credit score or a credit history.  If you've never borrowed money or used credit cards, you have not established a record that shows that you can manage credit responsibly. This can make it difficult to obtain a loan when you need it.

If you do not have a credit history, there are several things you can do to demonstrate your ability to manage credit and successfully build your credit history:

• Apply for a secured loan or secured credit card. Apply for loans or credit cards that are guaranteed by your money. When you get the loan or credit card, always make the payments in full and on time. Ask your local bank or credit union if they have a secured credit card product. ACCION USA provides small installment loans to help individuals without a credit history begin to build their credit. Click here to learn more about our loans.
• Get a co-signer. Ask a friend or relative who has good credit to co-sign a loan, which means that he or she shares responsibility for the loan with you.
• Apply for an ACCION USA loan. ACCION USA provides small loans to help individuals without a credit history begin to build their credit. Click here to learn more about our loans.

Patience is important in this process.  It takes time to establish credit and build a record of timely repayments.  It is much better to go slowly and develop a strong credit record than to apply for too many credit cards or a loan that is larger than you can handle.

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