Building credit for people with no credit history

This is something that many Americans are aware of, but sometimes life happens. Sometimes, the money just isn’t where it needs to be. You may have a medical emergency, or some other unforeseen circumstances show up, and you may not be able to pay all of your bills on time.

If this sounds like something you’re going through, you’re not alone. People all over the country deal with credit issues, because sometimes, there’s just nothing you can do about it. When you get things back in order, however, you may have to start working on building your credit score back up so that you can enjoy all the benefits that a solid score offers.

Maybe you don’t have a low score, but instead don’t have a credit history at all. 

If the latter is true for you, then you will be pleased to know that building your credit can do some great things for you, and leave you with a lot more options than if you have no credit at all. 

There are so many great reasons for you to strive to have the best possible credit score you can. Sure, you can make it through life with a low credit score (or even no credit) if you absolutely need to, but you won’t get to enjoy some of the many benefits that comes with having a squeaky clean score. 

Here are just a few of the things you will be able to enjoy, and take advantage of, when you have a great credit score. 

Interest rates are what you have to pay in return for borrowing money or establishing a line of credit. People with higher credit scores will find themselves qualified for the lowest possible interest rates, which means that you’ll spend less time paying a higher interest rate and have more money to pay off your credit card balances. 

If you have a lower credit score and a poor payment history, you probably won’t be able to get approved for the best credit cards out there. A higher credit score greatly increases your odds of approval when applying for loans or credit cards. 

When applying to rent a home or an apartment, your credit score will be a factor that is taken into consideration. If you have a higher credit score, it is going to be a huge factor in helping you get your foot in the door for a house or apartment. 

If you’re a US citizen who has never had a credit card before and have no credit history, or maybe someone who just moved to the US and is getting ready to start building your score, then you’re going to have to start somewhere. 

Many reputable sources such as Nova Credit have identified some of the best options for people with no credit, whether you’re a US national looking to build your score from nothing, or an immigrant looking to get established with a good credit score. 

Luckily, there are some great options for folks who don’t currently have a credit history, and one of the best options to get started is a secured credit card. A secured credit card (one of the best being the OpenSky Secured Visa card) is a credit card that you put a small deposit on, usually anywhere from $300-$500, use it in stores and online, and pay it off as you would a normal credit card. 

Secured credit cards get reported to all of the major financial bureau's, so you can rest assured that all of your payments are going to be reflected on your credit score, building it up so you can begin taking advantage of all the great things that having a high score brings with it.