Here's some common ways to get started:

1. One easy way to show a potential lender that you're a good credit risk is by opening individual checking or savings accounts in your name. While a bank account will not affect your credit file, the account activity will demonstrate your ability to handle money responsibly. Be aware that writing bad checks and overdrawing your bank account are negative indicators to lenders and do damage to your credibility as a good credit risk.

2. Apply for a credit card and use it to establish credit. Pay it off every month to show that you can responsibly handle money. If you must carry a balance, it's imperative that you pay your credit card bills on time. Department store and gasoline credit cards are generally easier to obtain than major credit cards such as a CitiCard® or Discover®.

3. Another good way to establish a credit history is to apply for a small loan or line of credit from your local bank. Repay the loan promptly and on time to build a positive credit history and earn a good credit rating. To get a loan without a co-signer, you must be at least 18 years old and have a steady source of income. Increase your chances of getting the loan you're applying for by coming up with a large down payment.

4. If you don't qualify for credit on the basis of your own credit file, consider asking someone with an established credit history (like a parent) to co-sign your application. If you fail to repay, the co-signer promises to do so on your behalf. If you're looking for a credit card to start building credit, consider a secured credit card. These credit cards require you to maintain a funded account / security deposit to get approved. Or, apply for an unsecured card and avoid the security deposit altogether (if possible).

Qualify for a New Credit Card If you are at least 18 years old and have a regular source of income or savings, you're on your way to qualifying for a credit card. But you'll still have to demonstrate that you are a good customer. The proof is in your credit history, which lists the amount of credit you have received and

how faithfully you've paid it back. If you've financed a car loan or other purchase, you probably have a record at a credit reporting bureau. This credit history shows how responsible you've been in paying your bills and helps the credit card issuer decide how much credit to extend. If you're a full-time student, make sure to include that information on your credit application. Creditors often assign full-time students lower initial credit lines to start their credit files. If you have an excellent credit history, you may qualify for cards with rates as low as 0% introductory APR and a variety of reward cards. /P>Before you submit a credit application, get a copy of your credit history to make sure it's correct.

Contact a credit bureau listed in the Yellow Pages under "credit rating and reporting."

To order a copy of your credit report, contact Equifax, TransUnion, or Experian.

Choosing the Right Credit Card Credit should be your servant and not your master! Smart consumers comparison shop for credit cards, especially with today's wide array of choices. Before you accept the 'pre-approved', 'limited time' offers you receive in the mail, consider all of your options and how you plan to use your new credit card. If you plan to pay the balance off each month, a grace period is vital to avoid paying interest on your purchases. If you plan to pay off the balance over time, look for low APR credit card offers with no annual fee. How high of a credit limit do you need? Will your new credit card be accepted in all the places you plan to use it? Equally important is to understand what method the issuer uses to calculate your balance and compute your finance charges. This will determine how much interest you'll pay each month!