Let's assume you have never had any type of credit and you would like to establish credit. The best way to do this is by applying for credit with a gas card company first; you may also attempt to apply for credit with some of the department stores. There is a chance you may be rejected and you just may receive the credit card.

If you receive the card it is a good idea to make sure you pay your card on time because the card company that extended the credit will more likely increase your credit limit later on.

After you have had credit with one company for an entire year and you paid on time other companies will be more willing to extend you credit. As you accumulate more and more credit eventually it will not be a problem for you to receive credit.

Soon you will be able to get a car financed and a house and other credit cards. Once you have build your credit you want to make sure you keep it in great shape by not charging up to the credit limit and by all means pay your creditors on time.

Late payments will get you reported to the credit bureau as late charging up to your credit limit will serve to lower your credit score.

Learn more about this author, Melvin Richardson.
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