Building New Credit 

Building New Credit is easy and with a little help you can quickly build a good Credit Score.  I have laid out steps for people in different situations below.

Life is way easier with good credit.  It will be difficult to get approved for loans, credit cards, car loans, home loans, rental apartments, utilities with no credit history.  

The three major credit bureaus that keep track of your credit history are Equifax, Experian, andTransUnion.

These credit reporting agencies gather information about your credit accounts, payment history, and other financial activities to create credit reports, which are then used by lenders, landlords, and other organizations to determine your creditworthiness.  They are the keepers of your credit history.

Building New Credit for my 18 Year Old Nephew

Building New Credit for my 50 year old Friend

Rebuilding New Credit for a 45 Year Old Divorcee

Some of My Credit Mistakes

Steps to Building New Credit:

1.  Become an Expert on Credit.  The ins and outs of credit will make a long term difference in how you handle your credit.   With just a little time you can learn all you need to know. Don't make any of the expensive mistakes I made.  

2. Apply for a secured credit card: A secured credit card requires a cash deposit that serves as collateral. This allows you to use the card and start building your credit history.  Check out the Best Secured Credit Cards.

3. Become an authorized user: Ask a family member or friend who has good credit if you can become an authorized user on one of their credit cards. This will allow you to start building your credit history while being backed by someone with established credit.

4. Pay bills on time: Even if you don't have a credit card or loan, paying bills such as rent, utilities, and phone bills on time can help establish a positive payment history that can be reported to credit bureaus.

5. Consider a Credit Builder loan for Building New Credit: Some banks and credit unions offer credit builder loans, which work by depositing a small loan into a savings account. You then make monthly payments on the loan, which are reported to the credit bureaus as on-time payments.

6. Keep Credit Utilization low: If you do get approved for a credit card, it's important to keep your credit utilization low by not maxing out your credit limit. Aim to keep your utilization below 30% of your credit limit.

7. Monitor your Credit Report: Regularly checking your credit report can help you identify any errors or discrepancies that may be negatively impacting your credit score.

8. The Credit Trap: Millions of Americans are caught in the Credit Trap.  Spending money on your credit cards that you do not or will not have the money to pay when the bill comes due can devastate you financially.

9. Take advantage of Float and the Grace Period on a Credit card.  If you pay your credit cards off in full every month you will get both float and the grace period for your payments.

10. Ouch I Missed a Payment:  The knee jerk reaction is to pay off the credit card and delete the credit source.  This is a better solution to building your credit.

It's important to remember that building credit takes time and patience.  With what you have learned now is the time to start establishing a great credit history and building your credit score.