Tips: Before you apply for any credit card, whether it's from a credit union, department store or bank, ask someone in the customer service or credit department if your payments will be reported every month to the credit bureaus. When you're trying to establish credit, you don't want to waste your time with cards that won't show up on your credit report.

To build a good credit history, you need to have at least three credit accounts. You have to make your credit payment on time and keep the balance at mimimum (pay off the balance if possible) to build a good credit hisotry. Here are a few tips to help you establish credit.

#1. Secured Credit Card.

Consider a secured credit card. One easy and fast way to establish credit is through secured credit cards. A major credit card, paid on time over time is the strongest credit reference you'll ever have! For building good credit, it's even better than a mortgage or car loan. A secured card can be one of the most important tools you can use to establish your credit. Secured credit cards are ideal for people with bad credit or no credit history.

#2. Prepaid Credit Card

If you need the same service as the regular Visa and MasterCard, prepaid credit cards are for you. They bear Visa or MasterCard logo and are accepted everywhere Visa or MasterCard is accepted. Many lenders now offer prepaid MasterCards and/or prepaid Visa cards.

The concept of prepaid credit cards is really very simple. You open an account and "pre-load" the card with cash up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or Visa anywhere these cards are accepted

Prepaid cards offer the convenience of a credit card without the debt. While most report to major credit bureaus, allowing you to work on rebuilding your credit, they are not credit cards.

#3. Retail or Gas Card

For people trying to get their first card, retail or gas cards are usually easier to qualify for than major credit cards, as long as you have a steady job and income that can be verified. If you use it to make small purchases and pay it off, you'll build a good credit history.

Since you have to buy gas many times a month, getting a gas card could eventually help you establish good credit. Don't pay cash.

#4. Unsecured Credit Card

Once you have built a solid credit history by paying your bills on time over 6 months or more, you can apply for an unsecured card. Or, you can talk to the card issuer about converting from your present card to a regular card.

In general, an unsecured credit card lets you make purchases for which you are billed later. Most credit card accounts allow you to carry a balance from one billing cycle to the next; however, you have to pay interest on that balance. Usually, you have to pay at least a certain amount of your balance each time you receive a bill.

#5. Non-traditional credit

The followings credit references may be helpful when looking for a loan:
-A satisfactory 12 month rental payment history
-Utility payment history, including electricity, gas, water, telephone, cable TV
-Insurance payment history, including medical, auto, life, renter's insurance
-Retail stores payment history, including department, furniture, appliance, or specialty stores
-School tuition payments
-Medical bill payments
-Rental payments related to durable goods: furniture or appliances