Скачать или смотреть How to Build Credit from Scratch

Here's a concise overview on how to build credit, especially for beginners or those rebuilding credit:

Build Credit: Overview

1. Understand What Credit Is

Credit refers to your ability to borrow money and repay it later.

Your credit score (typically from 300–850) is a reflection of your trustworthiness as a borrower.

2. Key Factors That Affect Your Credit Score

Payment History (35%) – Always pay bills on time.

Credit Utilization (30%) – Keep credit card balances low (under 30% of limit).

Length of Credit History (15%) – The older your accounts, the better.

Credit Mix (10%) – A mix of credit types (credit cards, loans) helps.

New Credit (10%) – Too many recent credit applications can hurt your score.

3. How to Start Building Credit

Apply for a Secured Credit Card – Requires a deposit, ideal for beginners.

Become an Authorized User – Get added to someone else’s credit card account.

Use a Credit-Builder Loan – Offered by credit unions or fintech companies.

Report Rent & Utility Payments – Some services allow these payments to count toward your credit.

Open a student or Starter Credit Card – If you're a student, this is a good entry point.

4. Best Practices to Build and Maintain Credit

Pay All Bills on Time – Even one late payment can hurt your score.

Keep Credit Usage Low – Try to use less than 30% of your available credit.

Check Credit Reports Regularly – Look for errors (AnnualCreditReport.com offers free reports).

Avoid Unnecessary Credit Applications – Too many hard inquiries reduce your score.

Maintain Older Accounts – Don’t close your oldest accounts unless necessary.

5. Monitor Your Progress

Use free tools like Credit Karma, Credit Sesame, or your bank’s credit monitoring service to track your score monthly.