How to Start Building Credit

Good credit is crucial to unlocking many financial opportunities in life. When you have a great credit score, you can get lower interest rates on car loans, credit cards, and mortgages.

How to Start Building Credit

Understand the Basics of Credit

The information contained in your credit report determines your credit score. Higher credit scores are more attractive to lenders and creditors.

No. 1

Monitor Your Credit Report and Credit Score

Monitoring your credit is one of the best ways to learn what will positively or negatively impact your scores.

No. 2

Become an Authorized User

If you have a friend or family member willing to add you as an authorized user on their credit card, you can piggyback off their credit card activity to help establish your credit.

No. 3

When you’re starting to figure out how to build your credit, do it slowly, carefully, and with a constant eye on your statements and credit reports.

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