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Basics Beginner: Establishing Credit for the First Time

Introduction to Establishing Credit for the First Time What Do You Need to Establish Credit for the First Time? Your First Credit Card Secured Credit Cards Getting a Personal Loan if You Have No Credit History Keeping Your First Credit in Good Standing Summary of Establishing Credit for the First Time
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Getting a Personal Loan if You Have No Credit History

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Getting a Personal Loan if You Have No Credit History

A personal loan is a loan that is granted by a lender to you for your personal use. Unlike a credit card, which you borrow from over and over as long as you don’t exceed the limit on it, a personal loan has a set limit and is loaned to you in a lump sum. You agree to pay it back on a schedule; a portion of your payment goes toward the principal of the loan, and a part goes toward interest.

Things To Know

  • Your bank or credit union might offer you a personal loan.

Personal loans establish credit. They are usually unsecured and based on your integrity and your ability to pay. If you do not have a credit history, but you already have accounts at a bank or credit union, those are an ideal place to apply for a personal loan. Talk to a loan officer; you may get at least a small loan. Alternatively, you may get a loan that is secured by one of your accounts.