BUILDING CREDIT

Building Credit: A Plan and Patience

Credit scores can seem mysterious, but ultimately building good credit is just about showing you’re reliable with money. And with everyone from lenders to employers looking at your credit, it’s worth protecting. To get started, you just need a plan and a little patience.

Tips to Build Your Credit:

Always Pay On Time: Your payment history is by far the biggest factor in your credit score. Even one late payment can hurt, so set reminders or automate your payments if you can.

Get a Free Copy of Your Credit Report: The major credit bureaus are required to regularly provide a copy of your credit report for free. The official site to get it is annualcreditreport.com—no credit card required.

Even if you think you have no credit history, it’s important to see what’s out there in your name. Whether a fraudster might have opened something with your info, or a simple error is showing up on your report, the sooner you spot it, the sooner you can get it corrected.

Apply for Low-Risk Accounts: Whether you’re building or re-building credit, consider starting with a secured credit card. This is a low-risk option where you set aside savings as collateral, which helps avoid getting in over your head.

When you’re ready, an affordable used auto loan is another great choice to help build your credit. Having a regular loan payment in addition to a credit card can also help boost your score.

Use Your Credit Card—But Just a Little: Spending a small amount and paying it off in full each month is the sweet spot. Try to keep your balance below 30% of your limit (under 10% is even better).

Tip: pick one or two regular bills (like your cellphone or a streaming service) that you know you’ll be able pay off every month, and set them up to autopay with your card. 

Be Patient and Consistent: Credit scores take time to grow. Don’t worry if things move slowly at first—just keep making smart moves, and your score will reflect it over time. And be sure to check back in with annualcreditreport.com every few months. Catching errors early helps protect your progress.

Credit Building Tips 

• Start Now: Get a Free Copy of Your Credit Report
• Apply for Low-Risk Accounts
• Use Your Credit Card—But Just a Little
• Always Pay On Time
• Be Patient and Consistent
• Ask for help when you need it - that's what we're here for!