Money Talks News - If you need to borrow money, you need to have credit. But what happens when you don't have any?
In the game of life, it's easy to feel like you're spinning your wheels. Example: To borrow, you need credit. But who's going to give you credit when you don't have any?
"The catch-22 is, it's very difficult to get credit without being able to show that you have some kind of credit history," Credit.com founder Adam Levin said.
So whether you're starting out in the credit game, or starting over, here's how to deal:
"Step number one is, have a friend or relative name you as an additional cardholder on a credit card," Levin suggested. "That will mean that their credit history builds yours."
Step two: Have someone co-sign a loan for you. Just make sure you can pay the bill.
"The third thing is a secured credit card," Levin explained. "That's where you deposit a certain sum of money and they will grant you credit based on the size of your deposit."
You can find them at any number of websites. Just make sure the card you pick reports to the credit bureaus because some don't.
And once you get that card, you're going to use it. But don't overuse it.
Don't use more than 20 percent of your available credit. And make sure you pay the bill every month.
Step four: Add another type of loan, like a car loan. Using different types of credit will enhance your credit score.
"You can open a CD at a bank and borrow against it, pay it off a few times and just make sure that the bank will actually report that transaction," Levin said.
And a final bit of advice? Be patient and be responsible.
"You can never surrender," Levin explained. "We live in a society where credit plays such an important tole in everything we do."
No doubt, credit is part of the game of life. And games are a lot easier played when you understand the rules.
Now what you need is more tips on building credit and they're waiting for you at the Money Talks News website. Just do a search for "building credit."