If you have bad credit or no credit, you can establish credit history using secured cards.

If you have been banking at your bank for a long time, you may be able to get a small personal loan. A good way to establish credit is to take the small loan($500-$1,000), and leave it in an account and have the money automatically deducted from that account every month, for a year. By leaving the money in the account and having the automatic withdrawal, you will know that there will not be any late payments on the loan and the money will be there. The reason for doing this for a year, is that it will establish a credit history for you.

Obtain your first credit card either from a dept. store or from a credit card vendor. Your first credit card will probably only have a couple hundred dollar limit but this is perfect and with proper use will establish your credit and increase your scores quickly. Never max. out the credit card, keep your balance at 30-40% of the limit or less, and pay more than the minimum payment. These tips will help you to establish credit in no time at all.

Car loans are another way to establish credit. If you are thinking about getting a new car make sure you are getting something you can afford. Everyone wants a nice new expensive car, but not everyone can afford the monthly payments. Be smart about the car and financing you choose, don't stretch yourself out too much with the monthly payments.

If you decide to get a loan from the bank first ask if they report to the credit agencies every month. Some banks do not report and if your bank does not report your efforts would do nothing to help your credit score. It would however give you a good alternative tradeline.

When trying to establish credit, be aware that some places that offer credit may only report to the credit agencies if they have negative information to report. These include some furniture or appliance rental companies and some of the buy-here-pay-here used car dealerships. This type of credit reporting does not help your credit.