 TITLE: How to Establish Credit If You’re Unscoreable CONTENT: Three Ways to Become Scoreable\n------------------------------\nTaking out a loan or opening a credit card can be difficult if you don't have a credit score. Here are three methods you can use to get around the Catch-22 and become scoreable:\n#### 1\\. Open a secured credit card.\nSecured cards help people with little or no credit history begin building credit. A secured credit card works like a regular credit card, except that you must pay a refundable security deposit to open your account. That deposit typically becomes your credit limit. You still have to pay your monthly bill, and it's important to pay all your bills on time to show a positive payment history on your credit report. The credit card issuer typically reports your account and payments to at least one of the three main credit bureaus.\nA good way to build credit with your secured card without paying interest is to use it for one small purchase each month and then pay off the bill in full before the due date.\nBanks, credit unions and credit card issuers offer secured credit cards. Be sure to compare your options, as some cards charge an annual fee or have high interest rates, while others offer rewards without any annual fees.\n#### 2\\. Take out a credit-builder loan.\nA credit-builder loan is a secured loan that you can use to establish credit. Similar to a secured credit card, you'll need to give the lender a security deposit when you take out the loan.\nWith a credit-builder loan, you'll receive the loan amount after you've made fixed payments on the account until the end of the loan term. The lender will report your loan payments to the credit bureaus, which can help you build credit history. Once you pay off the loan, the lender will return your security deposit.\nYou can usually get credit-builder loans through a credit union, community bank or online lender (and typically not through a large financial institution). Generally, you'll have to pay interest on the loan you receive. But some lenders will place your security deposit in an interest-accruing account and return the full security deposit plus interest, which can help offset the interest you pay on the loan.\nAnother option may be a lending circle loan arranged by the nonprofit Mission Asset Fund. The peer loans are interest-free, and Mission Asset Fund reports your monthly payments to the credit bureaus, which can help build your credit.\n#### 3\\. Become an authorized user on someone else's credit card.\nYou could also ask a family member to add you as an authorized user on one of their credit cards. Depending on the issuer, the card's entire credit history might be reported to the credit bureaus under your name—which can jump-start your credit and make you immediately scoreable—or the issuer might start reporting the account's activity starting from when you became an authorized user.\nWhen you become an authorized user, the card issuer may send you a credit card that's attached to the primary cardholder's account. However, the primary cardholder is legally is responsible for all the charges connected to the account. While you might have an arrangement to pay your portion of the bill, if the primary cardholder misses a payment, the late payment could be added to your credit reports as well.\nGenerally, it's best to only ask a relative who you know is responsible with money to add you as an authorized user. You also want to feel comfortable discussing finances and credit with the person. END