They say Americans are badly under debt, but when you apply for credit or loan, you get rejected. Not because you have a bad credit history, but because you don’t have any credit history at all. The good news is that there are more than fifty million American adults just like you. So, is it good news?

Not quite! At some point in your life, you might actually need credit in order to achieve huge goals such as acquiring college education, buying a home or a car. Creditors won’t lend you money unless they have a record of how responsible you are when it comes to repayment of your debt. The only way to prove your credibility here is through your flawless credit history.

So, now you are in a tricky situation. You can’t get a credit without a credit history, you can’t build a history without any credit. Here’s how to get out of such Catch-22.

Step 1 – Start Safe

Be very considerate and start building your credit history at least a year before you actually need the loan. Secure credit cards are the best way to start. Secure credit cards are easier to obtain but require a security deposit of a few hundred dollars. The credit limit is usually the amount of the deposit. Other than that, it can be used just like an unsecured credit card.

Step 2 – Spend Small

Start using your secure credit card – responsibly. It is impossible to build a credit history just by getting a credit card. Charge small purchases with your card and make sure you are able to pay them in full every month. The best way is to restrict the usage of this card to your gasoline expense or occasional meal at a fast food restaurant.

Step 3 – Pay Full

Don’t procrastinate when it comes to repayment. Maintain a continuous record of timely repayment every month and always repay in full. Installments will only increase the interest and hamper your credit score. Typically, one late payment on your secure credit card is enough for bank and creditors to reject your application.

Step 4 – Patience Pays

Show some patience and avoid building a quick credit score by applying for numerous secure credit cards. This may only result in failure to repay all the credit and consequently you will end up with a bad credit score. Focus on one account, and try to maintain an excellent credit history through that.

Step 5 – Keep Track

Keep a check on your credit report and score. It is very important, not only to keep your ownself on the right track but also to avoid any false or fraudulent credit report in your name. Identity theft cases are quite common especially in case of children and teenagers. If you find yourself a victim of such a crime, consult the credit reporting agencies to clear your name and credit report.

Step 6 – Upgrade to Unsecured

You can finally apply for an unsecured credit card or loan after exhibiting twelve month of responsible usage. It would be enough to ensure credit companies of your credibility and trustworthiness. As compared to secure credit cards, unsecured credit card comes with a higher credit limit and also a higher interest rate.  So, it is best to return to Step 2 from here.

In six easy steps and a little patience, you will be able to build a credit score you can be proud of. The real test begins when it comes to maintaining it. Secure credit cards or unsecured, always use them responsibly so that your creditors are still there for you when you need them the most.

NBC and Get Credit Healthy on credit repair and new credit card

Secured Credit Cards 2011

Secured Credit Cards can be a great solution to someone who needs to build credit.  On a personal note, I used a secured credit card to build my own credit.  I was taught from a child that I should by things only if I have the money right then so even as an adult had no credit.  I used a Bank of America secured credit card to build my credit and it took a little over 6 months.  Remember, it is important to pay your payments on time and what worked for me was keeping a small balance, about 30 percent of the available balance.  After a few months I asked the bank to raise my credit limit.  They raised it three times over a one year period and I had great credit as a result.  **

»By clicking on the cards below you will be forwarded to the issuers Secure application form

Platinum Zero® Secured Visa® Credit Card from Applied Bank®

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• Credit Bureau Reporting
• Zero Application Fees
• Personal ID Theft Protection
•  Set Your Own Credit Limit with $500 – $5,000 Dollar Deposit
• Zero% APR on Purchases

Credit Needed: bad credit*

Applied Bank® Secured Visa® Gold Credit Card

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• Choose Your Credit Limit – From $200 to $5,000.
• $50 annual fee
• Guaranteed Approval Regardless of Your Past Credit History
• 9.99% Low Fixed APR – Your Rate Won’t Change Even if You Are Late.
• Highest Ratings for Financial Strength and Security in the Country

Credit Needed: bad credit*

Platinum Zero® Secured Visa® Credit Card from Applied Bank®

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• Credit Bureau Reporting
• Zero Application Fees
• Personal ID Theft Protection
•  Set Your Own Credit Limit with $500 – $5,000 Dollar Deposit
• Zero% APR on Purchases

Credit Needed: bad credit*

Orchard Bank® Classic MasterCard®

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• Variable Purchase APR: 14.99% or 19.99%, or 7.99% for secured cards
• Annual Fee: $39 or $59 the first year, or $29 or $49 Introductory the first year then $59 per year thereafter
• Variable Balance Transfer APR: 14.99% or 19.99%, or 7.99% for secured cards, Variable Penalty APR: 29.99%
• An excellent credit card for help rebuilding credit scores; reports to 3 major credit bureaus monthly
• Acceptance at millions of locations worldwide, including website purchases and reservations
• Your account information is updated and at your fingertips 24/7 so you can manage it your way
• Email and text messages are available to remind you of your upcoming payment due date
• Knowledgeable customer service representatives to assist you with questions or concerns

First Progress Secured Platinum MasterCard® Credit Card

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The First Progress Secured Credit Card credit card is a full-feature Platinum MasterCard® with a credit line based on a security deposit rather than on a credit score. The card is designed to advance the accumulation of new information in a credit file by reporting account activity to all three of the major national credit bureaus every month. And because it’s a full-feature Platinum MasterCard®, the card provides the convenience and prestige of the worldwide MasterCard® system.

Horizon Gold Credit Card

About Horizon Gold Credit Card

• $500 Merchandise Limit (see site for details)
• Guaranteed Approval
• No Credit Check
• Fast Online Approval
• No Employment Check
• Reports to Major Bureau
• Always % 0.0 APR

• Not only do our members get to use their $500 unsecured line of credit in the Horizon Outlet – They get an unmatched benefits package that includes unlimited access to credit score, pharmacy discounts, legal assistance and a roadside assistance program.

• Arguably one of the best benefits of the Horizon Gold Card is the opportunity for members’ to boost their credit score on a monthly basis. As long as Horizon Gold members make monthly on-time payments for their Horizon Outlet products and services, payment actions are reported to a major credit bureau which can improve credit scores!

• Members are guaranteed to receive our Horizon Gold Card with an initial $500 credit limit provided they are 18 years of age or older, a legal U.S. resident and have furnished accurate identity and application information.

**Note: This is not professional credit or legall advice.  This is for informational purposes only and not to be confused with professional credit services.  This did work for me but it may not work for you.

*The information presented on this site is made without warranty or guarantee of approval.  Although reasonable efforts have been made to maintain the accuracy of information given, you should review the terms and conditions presented on the issuer’s website.  You can view the details of each program and terms and conditions, by clicking any credit card image on this site and navigating to terms and conditions.