How to obtain a credit card without a financial history

With lending standards tightening among many financial institutions, it can be particularly difficult for individuals with bad credit to borrow money. But it also can be hard for those who don't have any credit at all, as lenders can't judge how capable individuals are about repaying their debts.

In light of this, Forbes magazine recently detailed some of the ways consumers who lack credit can obtain a credit card.

The financial news magazine says one of the best ways is to apply for a prepaid card, which can be used just like a credit card, but has an allotted amount of funds that can't be overdrawn. Many providers have built-in plans that allow users of these cards to accrue credit and establish a financial history.

Another option Forbes recommends is applying for a credit card with a co-signer, such as a parent. Creditors will often approve these applications because by signing, he or she agrees to pay for the applicant's debts if they can't come up with the money.

Once consumers establish a credit rating, they should be sure to keep track of their credit history. Inaccurate notations can lower a person's score, erasing what may have taken several years to achieve.