How To Build Credit In 10 Easy Steps

Updated: May 13, 2018

Good credit can help you finance your education, buy a home and more financial goals. This is why it's so important to build a good credit score.

Having good credit means you have showcased that you can handle credit in a responsible way and pay your creditors on time.

Beginning with your first credit card, you are able to showcase that you can use credit responsibly and your actions become part of your credit history.

The first way you actually build credit, is to actually get credit. It can be difficult, but getting a secured card, which requires you to make a security deposit against the credit limit before you can be approved, making you less of a credit risk, can be a good fist step. You can also try to get a retail card, which are often an easier approval option. Retail credit cards typically have low credit limits, high-interest rates and can only be used in a specific retail store.

How To Build Credit In 10 Easy Steps

1. Start Building Credit By Getting Credit: Secured Card, Retail Cards

2. Ask Someone to Make You an Authorized User

3. Get a Cosigner for a Credit Card or Loan

4. Make Your Payments on Time

5. Start With One Credit Card

6. Watch How Much You Borrow

7. Pay More Than the Minimum on Credit Cards

8. Keep Your Accounts Open

9. Can You Do It Without a Credit Card?

10. Check Your Score Regularly

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