Creditors like to know they are taking as little risk as possible by extending credit to you, so when you are establishing your credit, you can do a few things to help you chances. Opening a bank account for checking and savings helps to establish your cash flow situation and allows a lender to determine to a point whether you are a credit risk or not. Here are some other suggestions to get you started establishing your credit:

• Obtaining a secured loan helps to establish your credit and is relatively simple to do. A secured loan is a credit line that is secured by some sort of collateral. When you think of secured loans, you usually think of home mortgages or car loans, but they can also be a credit line secured by cash in an account you are not allowed to access for the length of the loan. If your only purpose is to establish your credit, this can be one of your best options. Just be sure that the bank you get the secured loan from reports to the credit bureaus.
• Unsecured loans are usually easily obtainable without credit, but you have to be careful when borrowing this kind of money. Unsecured loans generally have a very short payback period and high interest rates. If you can't make the payments or the interest is to high for you to pay back on time, it will completely defeat the purpose of getting a loan by getting this type of loan.
• Get a major credit card. Before you sign up, make sure they report all payments to credit bureaus, not just missed ones. Major credit cards are relatively easy to obtain. You have probably been pre-approved for lots of offers already. Be sure to pay your balance in full every month, even when trying to establish credit.
• Open a store credit line. Many stores in the mall (or other places) offer an in-store credit card. These generally have lower rates than an actual credit card and much smaller limits. Before you open a store line of credit, make sure the store reports to the credit bureaus. If they don't, opening a card there is a waste of your time.

Lenders are looking for specific things in your credit history like paying back loans on time and in full, your employment history, the history of paying your bills, etc. If you haven't yet established your credit, you can still bring this kind of information to a creditor when you are being considered for a loan. Here's a break down of what you can bring and why they will want it:

• Bank statements - Opening a checking and savings account does not require credit, however, the history of your bank accounts can give a creditor a good idea of your cash flow and what to expect when and if he loans you money.
• Employment history - You can't pay back a loan if you are unemployed or if you can't hold a steady job. Your employment history is every bit as important as your cash flow in that it tells a lender what kind of risk he is taking by loaning you money.
• Residence history - Just like changing employers, changing where you live often can be detrimental to obtaining credit. If you make regular rent payments or own your home, it shows stability and trustworthiness.
• Utility Bills in Your Name - Having a history of utility bills in your name won't establish a credit line, but having a history of paying your bills on time and in full reflects well on you and your word.