Establishing a Credit History when You Can't Get Credit

Sometimes, establishing a good credit history can seem like a catch-22.

If you have no credit history, and have never had your own credit card, getting that first credit card can be tough. Credit card companies sometimes don’t want to take a risk on you unless you have a good credit history, and have shown that you can and do pay your bills on time. But how can you establish a good credit history if no one will give you credit?

Those with a bad credit history also have a tough time. In order to turn their credit history around, they have to show credit card companies, finance companies, and others that they have gotten back on their feet and are now able to pay their bills consistently and promptly. But that’s hard to do if no one will take a chance on them by giving them bills to pay.

See? A catch-22.

Those with a good credit history have a much easier time getting loans, financing a home or car, renting an apartment, or even getting a job. (Someone with a good credit history will seem much more responsible and reliable to a perspective employer than someone with a bad credit history.)

Fortunately, there are ways to establish a good credit history, even if you’re having a hard time getting an unsecured credit card.


Apply for a department store credit card.

Even if you can’t get an unsecured credit card, you might be able to get a department store credit card. Just make sure they report to a credit bureau before you apply. Once you get the card, charge something on it. But don’t go overboard. The last thing you want to do is create a bill you won’t be able to pay, which will hurt your credit history. Make the first purchase something you can pay off in two or three months/installments. Once the first purchase is paid for, charge something else, and repeat the cycle, always paying the credit card bill promptly. By doing this, you’ll show that you can pay a bill regularly and on time, which will look very good on your credit history.

If you're not interested in getting a department store credit card,  a gas station credit card is another option.


Get a consigner for an unsecured credit card.