You may already be aware of the difficulties that face a consumer with bad credit when it comes to applying for loans, credit cards and other financial type services from banks and lenders. Unfortunately, it can be almost as hard for an individual with zero or no credit to obtain a loan or credit card. Understandable this normal practice of the lending institutions around the world has many folks angered and in an uproar. From the lenders point of view they are very cautious about opening or offering credit accounts of any type to people that have no established credit because it doesnt provide a way for the financial creditors a way to check your reliability for paying back a loan or any extended credit. However, many people think they deserve the opportunity to establish their credit and the truth is you have to be able to start somewhere.

If you currently have no established credit history and you just read the opening paragraph to this article stating that it's difficult to find a lender who will trust your ability to payback any extended credit that you attempt to obtain from them in good faith then you're probably wondering what to do. Fortunately the key words were "difficult to obtain credit with no prior credit history" and not "impossible to do" so rejoice in the fact that it is possible to find a way to establish your initial credit history. In fact there are a few ways that we will cover in the rest of this short article.

If you try to initially obtain a credit card such as a Visa, MasterCard or American Express from a major lender chances are good you will get denied. However, most department stores are more then willing to grant you a revolving credit account with their store. Make sure when using this card you always pay it back and on time. This will help to quickly build up your credit rating allowing you access to a major credit card at some point in the near future. You can also sometimes be approved for gasoline credit cards, which are also good for building up a consumers credit history.

Many financial savvy consumers have found that by virtue of being a member with a local credit union they were able to apply for and subsequently receive approval for a credit card provided to them by their credit union. The ability and generosity shown by credit unions to their members, especially newer members, explains why they are growing in popularity as a means of providing banking and other financial related services to more and more people everyday.

With some careful searching folks without any credit may be able to obtain a credit card by providing some upfront cash in the form of a bank deposit as a sign of good faith and for collateral. Credit cards obtained through this means are normally referred to as secured credit cards. Of course, this isnt the preferred method of establishing someone's credit but in time as consumers use the secured credit card and demonstrate their safe spending habits and ability to pay back their financial debts the limit on the credit card will increase. Eventually, with enough credit history established the consumer can then start applying for an unsecured card and close this secured account once approval for a regular credit card has been granted.

Keep in mind that before, during and after you have a credit card you are always establishing your credit history when you make the payments on any purchase that you have financed with someone else's money, such as a bank or financial lender of loans.