So what should the people with no Credit history do? They don’t get credit card because they don’t have a credit history. The banks reject them because of the same reason. No one gives them a loan. So what do you do? Unless you get a credit card, you can’t build a credit history. And the irony is that you need a credit history to have a credit card. So, how do you break this vicious circle? There are a few creditors who offer credit cards or loans to people with no credit history or bad credit but they ask for a high annual fees and outrageous interest rates.

In my opinion, a good way to start your credit history is by getting a Secured Credit Card. In a secured credit card, the amount you deposit in the bank as a security sets your credit line. For example, if you deposit $300 in the bank, you get a secured credit card with a credit limit of $300. As you use the card and make payments, you establish a credit history. Although these cards have high interest rates and some annual fees, they would be helpful to those who pay their entire credit card bills on time. Once you get a secured credit card, you can increase its credit limit later. Make sure the credit card company reports to a credit bureau before applying for a secured card. Once you have a secured credit card, you need to make sure that you pay all your bills in time. After a few months you should be able to obtain a regular credit card.

In order to rent a home, you might have your credit history checked. The best way here would be to co-sign with a friend or relative who has a good credit history.

Don't worry, within a year you would build your own credit history !!!