Don't get in debt, its as simple as that, once you've got into debt your not looking like a good reliable person to lend money too.

To build a credit rating, you actually have to go into debt. One way to start building a credit rating is to first open a checking and savings account. Next, apply for charge cards at department stores, keeping a small balance on them. You're going to have to pay interest on the balance, but it's the price you pay for wanting to build credit. Keep the balance low enough so that you can pay it off at anytime should you want or need to.

Free Credit Reports

Thanks to an amendment to the Fair Credit Reporting Act, everyone can obtain one free credit report a year from each of the three major credit-reporting agencies (Equifax, Experian, and TransUnion). It's a service not to be missed. The reports may contain errors that could hurt your credit rating - or show that someone else has opened accounts in your name. Free credit reports can be obtained through the individual agencies, but the easiest way to get them is through www.annualcreditreport.com, the authorized central source.

To get a report on the spot, request it online by visiting www.annualcreditreport.com and selecting your state. Make sure you go to the right website. There have been problems with websites that have similar URL's. These websites may give you your free credit reports, but they are not authorized by the government, may not be secure, and may not give you your "free" credit report unless you purchase something else.

If you don't need a report right away, you can request one by calling toll-free 1-877-322-8228, or by printing the request form off the website and mailing it to the address indicated. Phone and mail requests are processed within 15 days.

If you are working to improve your credit rating, you may want to stagger your requests throughout the year - that is, use www.annualcreditreport.com to order a report from a different agency every four months, so that any problems become apparent early on.

It works a little different here as far as i know, here your credit rating is good if you have not got into debt, get into debt and you have poor credit rating.

Be persistent in applying for those department store credit cards. You may be turned down for a few of them before you are finally approved for some. Make your payments on time. Once you've done this for a while, it's time to think about applying for a major credit card such as MasterCard, Visa, American Express, or Discover.

Why do you want to have a good credit rating rather than a poor credit rating or no credit rating? Someday you're going to want or need to make purchases that exceed your ability to pay for in a single payment. That can include things like a vehicle, house, or small business needs.

I've tried applying for the department store cards, but I can't get anything because I owe major hospital bills and student loans. :(