By Steve Rhode
Gannett News Service

Question: I am retired, own my own home free and clear, and always paid cash for our cars. Now I want to get a major credit card for traveling but I keep getting turned down for "no credit history." How can that be?

Answer: You're caught in the credit Catch-22 - it takes credit to get credit and no credit is worse than bad credit. Most issuers want to see that you have already paid a major credit card on time before they will give you one.

So how do you get that first card? One option is to make an appointment with the loan officer at the bank or credit union where you have your bank accounts and request a card with a small credit limit to start. Another option is a secured major card, which requires that you put a deposit in the bank in exchange for a credit line approximately equal to your deposit.

A list of secured cards is available at www.Bankrate.com. Once you get that first card, use it a few times a month, pay the bills on time, and soon you'll have more offers than you'll know what to do with.

Question: About a year and a half ago, a former co-worker asked me to cosign on a credit card. Not thinking he was a bad guy, I did. Well, now he has charged over $3,400 on the card, left the state, and has not made one payment. Is there any way I can get my name off the card?

Answer: When you cosign a loan or credit card you assume full legal responsibility for that debt if the primary borrower fails to pay.

Unfortunately, none of your options are perfect. You can make payments on the debt and save your credit rating, then go after your co-worker for the amount of the debt. This will be difficult since the person is now living in another state. If you don't pay, your credit rating will be ruined and you may be faced with collections activity or a lawsuit.

Contact the card company immediately and close the account so your former co-worker cannot continue to charge on it. You won't be able to take your name off the account until there is no balance left. Consult an attorney for help.

Tip: If you do not receive your credit card bill one month, contact your card issuer immediately. To protect your rights under federal law, write to your card company (at the address listed on your previous statement) and explain the problem. That way, you can't be penalized or reported as late to the credit bureaus if your payment doesn't arrive by the usual due date.

Simply calling the issuer does not protect your rights.

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Send questions or comments to questions@SteveRhode.com. Steve Rhode is a money coach, president of Steve Rhode Inc. and co-founder of the nonprofit consumer education group www.Myvesta.org.