Finance: Scoring A First Loan

It's a catch-22: you need a credit history to get a credit score, and you need a credit score to borrow money and build that history. Now Fair Isaac Corporation, the company that invented credit scoring, will give FICO grades to people without a credit history by looking at how responsibly they pay their bills and handle their bank accounts. These new scores will allow lenders to figure out which new borrowers are safe bets for loans.

To start building a credit history, you should get a credit card and pay the bill on time. Also, don't stiff the landlord or overdraw accounts. Just be careful what you wish for; you'll know the joy of debt soon enough.

Finance: Scoring A First Loan | News