It won’t happen overnight, but establishing good credit can be done with a little bit of time and consistent effort. Here are the best, proven ways to build and maintain strong credit:
1. Apply for a Credit Card
If you have no credit history, you’ll need an account that reports to the credit bureaus (Experian, Equifax, and TransUnion):
- Get a secured credit card. You put down a deposit (e.g., $200–$500) as collateral. Use it for small purchases and pay in full monthly.
- Become an authorized user. Ask a trusted family member or friend with good credit to add you to their credit card. Their positive history can help yours. As long as they pay on-time with that card and keep any balance low, that will help you.
- Take out a small loan to build credit. Small loans can help build credit. Payments are reported monthly.
2. Use Credit Responsibly
- Keep balances low. Ideally you should keep your balance under 30% of your credit limit, and under 10% for the best scores.
- Pay on time, every time. Payment history makes up 35% of your FICO score. Even one missed payment can hurt your score.
- Pay in full if possible to avoid interest charges.
3. Build a Long History
- Keep older accounts open. The length of your credit history helps your score.
- Avoid frequently opening and closing accounts unless necessary.
4. Consider Non-Traditional Credit
- If you pay rent or utilities, consider using services like Experian Boost to get those payments added to your credit file.
Plus, you can always talk to one of the Certified Credit Counselors at non-profit CCOA. Just call (479) 521-8877 or fill out our online appointment request form to get started on establishing good credit.
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