Building Credit From Scratch

Starting with no credit history can feel like a catch‑22, but three well‑timed moves can get most people into the high‑600s within a year.

1. Open a Starter Tradeline

• Secured credit card: Your deposit becomes the limit; make small monthly purchases and pay in full.
  
  

• Credit‑builder loan: A bank or credit union locks the loan amount in a savings account; you “repay” yourself, creating an installment history.
  
  

2. Leverage Positive Piggy‑Backing

Ask a trusted relative with impeccable habits to add you as an authorized user on an old, low‑balance card. Their payment history and limit can show up on your file within one reporting cycle. 

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3. Add Alternative Data

Services like Experian Boost® now let you report on‑time payments for utilities, phone bills, and even rent—often worth a quick 10‑ to 30‑point bump on thin files. 

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4. Graduate and Diversify

After 6‑12 months of perfect payments:

• Ask the secured‑card issuer to unsecure and raise your limit.
  
  

• Consider a low‑fee rewards card to expand available credit.
  
  

• Keep your oldest account open forever; its age becomes the backbone of your file.
  
  

Key Takeaways

• One secured card + one authorized‑user line + Boosted utility data is a proven formula for hitting 680‑700 in under a year—if every payment is on time.
  
  

• Space any new credit applications at least six months apart to minimize hard‑inquiry drag.
  
  

• Never close your first account; its age becomes invaluable later.

Disclaimer: These articles are for educational purposes only and do not constitute legal or financial advice. Consult a qualified professional for guidance tailored to your specific situation.