No credit? No problem! Here's how to get good credit if you don't have any.

These days, having good credit is far more important than simply having the ability to borrow money. Credit comes into play when you apply for a job or try to rent an apartment. Even auto insurance can be determined by your credit rating.

So, what should you do if you're trying to establish or rebuild your credit?

Well, before you dial that 1-800 credit repair number you saw on late-night TV, beware. "People should definitely avoid agencies that say they will rebuild your credit," warns Jerrold Mundis, author of How to Get Out of Debt, Stay Out of Debt, and Live Prosperously (Bantam; $10.95). "Ninety-five percent of these agencies are scares--they can't or won't do it." The good and bad news is that rebuilding your credit is largely up to you.

A secured credit card may be the way to go. Getting a secured credit card is as simple as making a cash deposit that becomes your credit line. Some banks allow you to add to the deposit while others will reward you for making timely payments by adding to your credit line. Remember, you are trying to rebuild new credit, not take on more debt--so beware of temptation. "Only use the card for purchases you can afford to pay in full," says financial adviser Pierre Dunagan of the Dunagan Group in Chicago. "This will help you establish credit without incurring debt."

Don't miss a single payment. "These days, credit records are so sensitive that a single late payment could cause you to be denied future credit or charged a 5% fee," warns Mundis. After a year of on-time payments, ask your secured credit card issuer to convert your card into a nonsecured card and ask for your deposit back.

Before you check out our handy sidebar to see which secured card meets your needs, here are a few things to be aware of when applying for a card:

* Watch out for the annual fees. They carry higher interest rates and there isn't a grace period on advances, which means interest on your purchases accrues immediately.

* Look for a card that doesn't charge an application fee or any other processing fees to open your account because they may be applied against your line of credit.

* Don't apply for a card that doesn't report your timely payments to the three major credit card bureaus. Remember, you're trying to build a credit trail.

TOP 10 SECURED CREDIT CARDS
LOWEST FEES AND MINIMAL BALANCES

                        Phone        Card     Purchase   Annual
Institution                          Class       APR       Fee

Amalgamated Bank     800-723-0303   Gold        9.25%     $50
of Chicago

Amalgamated Bank     800-723-0303   Standard   12.75%     $50
of Chicago

Merrick Bank         801-545-6600   Classic    14.70%     $36

U.S. Bank/ Korean    866-759-7277   Classic    14.74%     $50
Air SKYPASS

U.S. Bank            800-285-8585   Classic    15.24%     $35

Evans NationalBank   716-549-1000   Classic    15.60%     $20

Washington Mutual    800-382-3334   Classic    16.05%     $35
Bank

American Pacific     800-610-1201   Classic    17.40%     $35
Bank

Wells Fargo Bank     800-642-4720   Classic    17.99%     $18

Union Plus/          800-651-5108   Classic    18.00%     $20
Household Bank

Institution          Fees & Conditions

Amalgamated Bank     No application fee. $5,000-$15,000
of Chicago           deposit; line of credit same as deposit.

Amalgamated Bank     No application fee. $500-$4,5OO
of Chicago           deposit; line of credit same as deposit.

Merrick Bank         No application fee. $300-$3,000 deposit;
                     line of credit same as deposit.

U.S. Bank/ Korean    $300-$3,000 deposit; line of credit
Air SKYPASS          same as deposit.

U.S. Bank            $300-$5,000 deposit; line of credit same
                     as deposit. Only available in certain states.

Evans NationalBank   Available in western N.Y.

Washington Mutual    No application fee. $300-$5,000
Bank                 deposit; line of credit same as deposit.

American Pacific     $300-$15,000 deposit; line of credit
Bank                 same as deposit. Not offered in WI.

Wells Fargo Bank     No application fee. $300-$5,000 deposit

Union Plus/          $250-$5,000 deposit line of credit
Household Bank       same as deposit. Must be a union member.

SOURCE: BANKRATE.COM