Some tips for folks who are credit ghosts, those who may have messed up their credit in the past and then went credit-free for years, who now have no credit at all. If you're in that odd boat and have been thinking about getting back into the credit game so that you can do responsible adult things, here are some steps to get going.

You've lived on cash/debit card for quite a while now. You've learned to live within your means, the creditors aren't calling anymore, maybe you get the odd letter now and then but you've checked your credit report and it's blank, no history, nothing good, nothing bad. They say having no credit is worse than having bad credit, but I'm not convinced. You're in a pretty decent position as long as you're not trying to buy a house or a new car.

1. Get a secured credit card. Do your research to see what the best current option is. Capital One offers a secured credit card with a free credit monitoring service that estimates your credit score, and has no yearly fees. There may be better deals out there now but historically they've been a good one. You'll need to deposit cash with them to secure the card, but this will get you moving again. Eventually you can close the account and get your deposit back.

2. Get a secured loan. Yeah, more upfront cost to eat up your savings account, but if you can do this it'll help a lot. A secured loan is essentially giving the bank your money and then they loan it back to you. Haggle them over the start-up fee, if you have a long standing relationship with the bank they may waive it for you because they'll make their money on the interest. For example, you give them $2,000 and they lock it up then give you $2,000 back which you pay pay back with interest over the term of the loan. This will create a diversity of credit and help your score some more. I recommend that you place the loan money into a separate account that auto-pays the loan back. Towards the end you'll need to pitch in more to make up for the interest you've paid. It's not a cheap way to build credit, you're kind of just buying credit, but it's valuable and will speed up the process. At the end when it's paid off you get your initial cash back and all the positives on your credit history. Do your due diligence and don't commit more cash to it than you can afford to.

3. After about a year you'll start receiving credit card and loan offers. It's time to begin a transition toward normal credit. Seek out the best deals and only apply when you're confident that you're in good shape. At this point you should only have 2 inquires in the last 2 years, which is good. Only apply for 1 or maybe 2 new cards. You want to keep the number of inquires down but you also need to increase your limits. If you use Amazon a lot then Chase offers a great Amazon Rewards card that pays pretty decently. 5% on all Amazon purchases, 2% at restaurants and gas stations, 1% everywhere else. Depending on your expenses and spending habits you can easily make $25/month back towards Amazon purchases, which is just a nice little bonus to save up over time.

Bonus Tip! If you're used to just living on cash & debit then you know you're responsible and won't get into a jam. Once you've got a credit card you need to use it. Even if you start with a low credit limit keep on using it and pay it off weekly if you have to. The issuer will see that you've been paying it off and should raise your limit over time, though on the secured card they may be a little more stingy. It's also better for you to spend on credit. If your card is stolen and someone charges it up you can fight that much easier so you won't be on the hook for the fraudulent charges. It's much much easier on you to deal with a stolen credit card vs cash or debit card!