How do I begin to build credit, even if I have no credit card or income?
It is very difficult to be approved for a credit card, let alone one with favorable rates and benefits, without any previous use of credit. There are solutions, though, for students and others who have this issue. A secured credit card can be an easy and familiar way to build credit. A secured credit card gives you a line of credit equal to an initial deposit with the bank who issues your card. This works similar to a debit card and can be a good way to stay on top of your credit without offering the bank any risk. Another way to build credit is to apply for a credit builder loan. This puts the money you borrow into a savings account you can only claim after making 12 monthly payments. This is a good way to get into the habit of making monthly payments and will build your credit at the same time. If you are a student and have some documentable income (part-time or full-time), then you can qualify for a student credit card. A student credit card is a full service credit card designed to help students build credit in college and after graduation before they want to apply for loans and more competitive credit cards. These cards usually have low limits and benefits designed to help students. They can be a good way to start building credit that can help you apply for better cards and loans down the road.