Credit or No Credit...is it impossible?

If you have no credit at all, then the best thing to do is to establish an account with a pre-paid credit card company that reports to the credit bureaus. They must report to the bureaus or you will not obtain any credit with other lenders. You will have to call them to make sure of this. Its the same as borrowing from your own money but at least you can establish credit. Most will require that you pay a fee (usually about $29) and deposit a minimum amount (usually about $100-200) into their bank and you can begin to use your card. The key is to make your monthly payments on time, Never be late. After 12 months your payment history will begin to look better to other card companies and you can apply for a better card. Remember not to apply too often or your credit score will become worse because credit inquiries will lower your credit score.