Starting with No Credit? Here's How I Got My First Score

Get added to someone else's credit card account to piggyback on their history.

1. 1
   Find a willing person with good credit — Ask a parent, spouse, or close friend who has a long history of on-time payments. They don't need to give you the physical card — just add your name to the account.
2. 2
   Ensure the issuer reports authorized users to credit bureaus — Most major issuers like Chase, Capital One, and Amex do. But not all — check before adding. I was added to my mom's Chase card and it showed up within 2 months.
3. 3
   Keep the account in good standing — You're not responsible for payments, but if the primary holder misses one, it hurts your score too. Make sure they're reliable — or offer to pay the bill yourself.
4. 4
   Check your credit report after 1-2 months — The entire history of that account may appear on your report. I got a 680 score from a 10-year-old card with perfect payment history.

A loan where the bank holds your money in a savings account until you pay off the loan.

1. 1
   Find a credit union or online lender offering credit-builder loans — Self (online) and local credit unions are common options. I used Self with a $500 loan over 12 months. They reported my monthly payments to all three bureaus.
2. 2
   Choose a loan amount and term — Typical amounts are $300 to $1,000, with terms of 6 to 24 months. Pick one you can afford — the monthly payment is deposited into a savings account as collateral.
3. 3
   Make on-time payments every month — Set up autopay from your checking account. Missing a payment will hurt your score. I paid $45/month for 12 months.
4. 4
   Receive the lump sum at the end — After you complete the term, the bank releases the funds to you. You've built credit and saved money at the same time.
5. 5
   Monitor your credit score monthly — Use Credit Karma or a free FICO score from your bank. After 6 months of payments, you'll likely see a score in the 600s.

Use a service to report your rent and utility payments to credit bureaus.

1. 1
   Sign up for a rent reporting service — Services like Experian RentBureau, RentTrack, or PayYourRent allow you to report rent payments. I used RentTrack for $9.95/month.
2. 2
   Connect your bank account or payment method — The service will verify your rent payments by linking to your bank or by you submitting receipts. Make sure your landlord is willing to participate.
3. 3
   Opt for positive payment history only — Some services only report on-time payments, which is ideal. You don't want late payments reported. Confirm this before signing up.
4. 4
   Check your credit report after 3 months — Rent reporting can add 20-50 points to your score. I saw a 30-point bump after 4 months of reported on-time rent payments.

Store cards are often easier to get than general credit cards, but carry higher interest rates.

1. 1
   Choose a store card with lenient approval criteria — Stores like Kohl's, Target, and Amazon have store cards that often approve people with thin files. I got the Target RedCard with no credit history and a $300 limit.
2. 2
   Apply online or in-store — Be prepared for a hard pull on your credit. Only apply if you're confident you'll be approved — too many inquiries hurt your score.
3. 3
   Use the card for one small purchase per month — Buy a $10 item at Target and pay it off immediately. This establishes payment history without carrying a balance.
4. 4
   Pay the balance in full before the due date — Store cards often have high APRs (25%+). Never carry a balance. Set up autopay for the full statement amount.
5. 5
   After 6 months, request a credit limit increase — A higher limit lowers your utilization ratio. I requested an increase from $300 to $800 after 8 months of on-time payments.