Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams.

Last week I told you that to celebrate Financial Literacy Month, I'm devoting each

post in April to an urgent or embarrassing question from a blog reader or podcast listener.

Maria wants to know, what's the best way for a young person to establish credit?

I'm almost 21 and am embarrassed to say, I don't know anything about what it takes to be a

financially responsible adult. Maria there's no shame in being a beginner when it comes

to personal finances. We all have to start somewhere. In past articles, I've talked about the importance of your credit score

and ways you can increase it.

But increasing your credit score is even more of a challenge

when you're also building it for the first time.

You've heard of a catch-22?

It's like this.

You can't build a credit history without a credit card or loan,

but you can't get a credit card or loan without a good credit history. Financial institutions have credit

standards that are stricter than ever these days. And if you're a young adult, it's even harder. Financial

institutions generally aren't sympathetic to the fact that as a young person

you simply haven't had much time to establish credit. The credit card, accountability,

and disclosure or card act of 2009 just made it even tougher on young people.

Card companies used to set up booths on college campuses and offer promotional goodies to entice students to sign up for a credit card.

Not anymore. Those types of marketing efforts are now prohibited.

The regulations that kicked in earlier this year put a real damper on the credit party. They put a new spin on the term

...