Built Credit From No Credit

Check your credit. If you haven't established credit, this advice may sound pointless. Request your credit report at AnnualCreditReport.com to make sure you don't already have a credit history.


Get your first credit reference. Your first credit reference will establish your credit history but it can "take credit to get credit." Other ways to build credit include getting a car loan, retail credit card or student loan.

If your only credit reference is a credit card, for example, you may want to get a personal loan or auto loan.

Monitor your credit and scores. So get your free credit reports each year at AnnualCreditReport.com, and check your credit scores monthly through Credit.com's free Credit Report Card. Look for unusual activity or changes that can indicate a problem.

If you’ve never had a credit card or a loan, your credit history is a blank slate. Your credit history, as documented on your credit report, is a record of how responsibly you’ve repaid money you’ve borrowed.

Get a secured credit card.

First, banks do not report debit card usage to the credit bureaus, as a debit card is not an extension of credit. Creditors, on the other hand, do typically report secured credit card activity to the credit bureaus, as a secured credit card is an extension of credit. As a result, how responsibly you use a secured credit card will affect your credit score – both positively and negatively.

If you don’t use your credit card, you’re not demonstrating anything. Each time you apply for a credit card or loan, your credit score takes a small hit.

Check your progress by checking your credit report and score.

After six months of timely credit card payments, check your status by viewing your credit report and score.

After a year, apply for an unsecured credit card.