Same boat as OP, I had no credit as well, my father offered to co-sign and he has good credit. Save up, get a credit card and use it instead of a debit card (or cash) and try again in a couple months, check your own credit and make sure there aren't any errors.
I first realized I was boned when ATT wanted a $500 deposit per line for a cell phone plan. It sucks because I know I'm just sending money off to the 'rich get richer' plan but I should be able to own a house and whatnot if I play the game.
Edit: There should be no penalties for paying off early, that way you won't be paying the whole $10k extra, interest isn't applied instantly, it builds up over time.