Building Credit from Zero

Step-by-step guide

1. 1

   Get your first credit product

   Options: Student credit card, secured credit card ($300-$500 deposit), or become an authorized user on parent's card. Being added to someone's good credit history helps yours.

2. 2

   Use credit lightly and pay in full

   Charge only small, regular expenses (gas, groceries, subscriptions). Pay the full balance every month by the due date. This builds history without debt or interest charges.

3. 3

   Keep your oldest account open

   Length of credit history matters. Don't close your first credit card unless it has high annual fees. Even if you stop using it, keep it open to maintain history length.

4. 4

   Be patient and consistent

   Good credit takes 6-12 months to establish. After a year of on-time payments, you'll qualify for better cards and loans. Check your score quarterly (Borrowell, Credit Karma are free).