In years past if you had no credit history of very limited credit history getting a larger loan for a home or even a car was difficult without a co-signer to help carry the loan. One way back then to alleviate this and begin building credit was to become an authorized user on someone else’s credit card account. In no time at all of being a authorized user enough credit would be built up to begin carrying a credit card of your own based on the score racked up on the authorized account.
Times have changed and being an authorized user on someone else’s account no longer helps you begin acquiring a credit score of your own. There are other ways in which someone with limited or no credit can get loans to begin building the trust needed with financial institutions to have borrowing power. Many credit card companies now take this into consideration and are more willing to give minimal accounts to those with no credit history. These no credit loans are a good first step for someone to begin showing responsibility with their credit.
