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Everyone knows how difficult it can be to establish credit. It`s the old "chicken and egg" situation ? you need credit in order to get credit. The fact that you have nothing in your history to suggest that you will not repay a loan will not help you get one. You need to have something in your credit history that suggests that you will repay the loan. And how do you do that if you have no credit?

One solution that`s often suggested is a secured credit card. A secured card requires you to put up a cash deposit that acts as collateral against your credit limit. Your issuing bank knows you will pay your bills because they have your cash. If you don`t pay, they will just take it out of your deposit.

A secured credit card is a good way to start building a credit history if you have none, but is there anything else you can do? How about joining a health club?

That may seem like a strange notion, but it may not be that far fetched. Most health clubs, especially the national chains, will have you sign a contract to join. That contract will require you to make monthly payments for a minimum amount of time, say two or three years. Most of them will also report your business to the credit bureaus. If you pay on time, you will get some positive additions to your credit report. Be sure to ask before signing up if they report your payments to the credit bureaus. If not, keep looking until you find a gym that does.

It`s pretty well known that the big health clubs make most of their money selling memberships, rather than selling health. If all you want to do is pay them the money, that`s fine. That`s what most people do. They attend for a while and then fall out of the habit after a while.

On the other hand, an added bonus of using a gym to establish credit is that you will have an opportunity to stay healthy by engaging in regular exercise and few methods of establishing credit will do that.

�Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation, establishing credit and credit counseling.

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