For some, establishing credit for the first time can be an irritating experience.
It's a paradox: you need credit to get credit. So, how do you start to form a credit history, when companies rely on a credit history to determine your credit score?
"It might be hard not having any credit history," says Rachel Wheat, the Marketing Director of Texoma Community Credit Union in Wichita Falls. "My advice would be to start out small, and see what types of credit you can get. Looking at your financial institution would be a good starting point to see if you can get a line of credit."
Wheat advises starting with your local bank when attempting to obtain your first credit card. But another viable option, for those trying to build or rebuild credit, is a secured credit card.
"That would be where you'd put money up against a credit card, and then borrow against it using your credit card, and make monthly payments on it," explains Suzanne Ellis, a Loan Officer at Texoma Community Credit Union. "This usually takes a couple of years, so you might want to renew the loan a couple of times."
Even for students in high school, its not too early to start thinking about credit. For teenagers, some options to get a running start in the credit world are to take a loan out against money in your savings account, or opening a joint credit card with your parents and paying it off each month.
Perhaps even more vital than establishing credit, though, is establishing good spending and credit habits early on.