A good way for you to build your credit history if you are new to credit is to apply for a secured credit card. A secured credit card works just like a regular credit card with one major difference: a secured card requires a security deposit and your credit limit matches the amount of the deposit you put down. Since your credit line is tied to your deposit amount, a secured credit card will help you build credit history with low risk to both you and your lender – and your approval is guaranteed.
If you’re new to credit, it’s going to be difficult for you to get a regular credit card because you have no history to indicate to lenders that you are a trustworthy candidate for credit. You can prove it to them by getting a secured credit card in which your deposit acts as collateral against your credit limit. Once you have shown you can manage a secured credit card responsibly for about a year, it is likely that your credit card company will offer you a chance to apply for a regular credit card. People who are likely to have no or limited credit history include college students, recent divorcés or widows (whose credit history was in their spouse’s name), or people who have recently immigrated to this country.