How to Build Credit When You’re Just Starting Out

Building good credit when you’re just starting out doesn’t have to be a worry. All you need is a little patience along with some good strategies and before you know it, your credit history will be strong. So far in parts one and two, we covered the advantages of getting a cosigner, becoming an authorized user, diversifying debt and going to your local bank. Now, here are a couple of more strategies that’ll help you build up your credit history for the first time.

#1 – Department Store Card:  Another great option for building credit is getting a store credit card. The interest rates may be much higher, but the approval process isn’t as difficult. Just make sure you pay that debt on time every month. If you fall behind, that will ruin your credit history before it ever starts.

#2 – Ask Other Account Holders to Report You: If you have recurring monthly expenses such as rent and utilities, ask the provider to report your account activity to the credit bureaus.  This strategy is rarely used, but it will work.  Just be sure your accounts are all in good standing before asking them to report you.

Now that you have some solid strategies on how to build your credit history from scratch, don’t let anything stand in your way. If you implement these starting now, you will see positive results on your report in a year or less.