So, you’re not quite ready to barter
with brokerage services or open an IRA. If you’re just starting out in the
financial game, that’s okay. After all, everyone has to start somewhere. Just
be aware that not having a lot of credit can sometimes be a challenge. However,
it’s certainly one that can be overcome.
If you find that your lack of credit is getting your
applications for credit cards or loans turned down, you do have options. One of
those options is to enlist a trustworthy, financially smart family member to
act as a “co-signor” on your loan. A co-signor is essentially someone who
agrees to be responsible for your debt should you fail to pay it.
The best co-signors are close family members with stellar
credit. A friend or someone you haven’t known for long usually doesn’t make a
good co-signor; many creditors and lenders will deny co-signors who aren’t
related to or otherwise closely and demonstrably tied to you. Also remember
that a co-signor is not an excuse to not pay your debts. If you’re smart and
honest, your co-signor will simply act as a stepping stone to establishing and
building (or rebuilding!) your own credit history.
