Having a good credit history is essential in the United States. Whether it’s getting a credit card, renting an apartment or financing a car, your credit score influences many financial decisions. If you’re starting from scratch, this guide will help you build a solid credit history step-by-step.
What is credit history and why is it important?
Credit history is a record of how you manage your debts. It includes information about loans, credit cards, on-time payments and credit inquiries.
A good credit history can help you:
- Obtain cards with better benefits.
- Access loans with lower interest rates.
- Rent housing more easily.
- Get jobs in financial sectors.
Steps to build your credit from scratch
Apply for a secured credit card: It is ideal for those who have no credit history. You deposit an amount as a guarantee and use the card like any other.
Become an authorized user: Ask a family member with good credit to add you as an authorized user on their card. You will inherit part of their positive history.
Apply for a credit builder loan: This is offered by many credit unions. You pay monthly and at the end you receive the money while you improve your credit history.
Use your card responsibly: Never use more than 30% of your limit and always pay on time.
Check your credit for free: You can do this on sites like AnnualCreditReport.com to check your progress and avoid mistakes.
Tools to help your credit grow
Experian Boost: Adds utility payments like electricity and phone to your credit history.
Credit Karma and Credit Sesame: To monitor your credit for free.
Banking applications: Some apps such as Chime or Self offer products designed to improve your credit.
Conclusion
Building your credit history from scratch may seem challenging, but with the right steps you will achieve a solid financial profile. Start with affordable products, stay consistent and you will see positive results in a few months.
Your financial future starts today!