Starting to build your credit history can be hard if you don’t have the right tools to make the best decisions. You should also know that building credit takes some time, so implementing some of these practices are good ways to start building it.
5 ways to start building your credit history
- Rental payments. If you are paying rent, you can ask your landlord or even go to a third party to report your payments to the credit bureaus.
- Authorized user. If your parents or a relative you trust has a credit card account, you can sign up to be an authorized user. The payment history, the account’s information and everything about the account will appear on your credit report.
- Secured credit card. Applying for this type of credit card might be slightly easier because you give an initial deposit in case you don’t pay your debt. This is a good way of starting to build your credit history.
- Experian Boost. Usually your phone bills, monthly services and bills are not included in your credit report. By signing up on Experian Boost you will get some of those things reported, which will help your credit history grow.
- Store cards. Unless you are paying the whole balance every month, this is a risky option, since stores usually charge higher interest rates. If you often go to a certain store and have no access to any of the other credit card options we gave you in this article, you can easily access this type of credit card, but be careful with the payments.