No credit? Here is how to build it from scratch Millennials
Out of high school? Maybe starting college? Wait you are a fresh college grad looking to build credit? I think you are at the right place.

Everybody starts life without credit. I want to help you through how to good build good credit, fast. Starting from scratch.
And no I wont make you read 6 other articles, I’ll tell you in one article.
Lets start with, “Why?”
you should be asking yourself this with anything you do financially.
Why do I need to build credit?
- If you ever hope to get a home loan you’ll need good credit.
- Calculating car insurance premiums
- If you want to rent a place you may need good credit to rent an apartment.
- Employment screening.
- If you want to get a car without a co signer, you’ll need good credit.
Overall, good credit will get you lower interest rates!
Who is keeping track?
There are three credit bureaus — Equifax, Experian, and TransUnion.
The bureaus maintain databases of everybody’s credit history and package this information as reports and scores to sell to banks, landlords, employers, etc.
Examples of accounts that do report to credit bureaus include:
-Major credit cards (Amex, Discover, Mastercard, Visa)
-Store credit cards (Target, GAP, Kohl’s, etc.)
-Installment loan accounts (mortgage, auto or student)
Examples of accounts that do not report to credit bureaus include:
-Debit cards (regular checking and prepaid)
-Utility and phone bills (electric, water, cable, cell phones)
-Rent payments
To have a FICO score, you need at least one account that’s been open six months or longer, and you need at least one creditor reporting your activity to the credit bureaus in the last six months.
How long does it take to build good credit?
You can build an average or good credit score in just a year or two.
I’ve learned that 720 is the number to be above, 850 is usually the highest anyone can get.
It’s possible to build good credit in just a few years, but it requires opening at least a few accounts of each type (loans and credit cards) and being on top of your payments.
That’s because the average age of your credit accounts is one scoring factor.
The longer your accounts have been open and in good standing, the more creditworthy you appear to be.
What happens when you miss payments?
Unfortunately, it can be much easier to destroy your credit than to fix it, so try to form good habits and start your credit history off early and right. The time and effort you put into building this solid foundation might eventually get you the best loans and rates and may even end up saving you money.
Keep your credit utilization low — utilization is your balance when compared to your limit. We recommend paying in full each month, but if do you carry a balance don’t let it exceed 30% of your credit limit.
Avoid opening too many new accounts at once; new accounts lower your average account age, which makes up part of your credit score.
Keep accounts open for as long as possible. Unless one of your unused cards has an annual fee, you should keep them all open and active for the sake of your length of payment history and credit utilization.
Only use a small percentage of your credit line.
No! And if you can help it, don’t go into debt just to build credit.
It’s a common myth that in order to build credit you need to carry a balance on a credit card. That’s not true.
The credit bureaus reward you for using a credit card and paying it off — whether you pay it in full each month or not.
And borrowing too much — especially in the beginning — will likely hurt your credit score, not help it.
Unfortunately, there is some truth to the fact that credit bureaus reward consumers who have both credit card (revolving) accounts and loans with fixed monthly payments. But if you don’t need a loan, you don’t have to take one out and pay interest just to build credit.
Now,
onward to options in building credit!
Options in building credit!
1. ROSCA Finance
Look for a site like Rosca Finance that offers a free FICO report, as well as helping build credit! If you play your cards right you can actually earn money by helping the community!
Check Rosca Finance by clicking here! Use my invite code to get something in return if you sign up: vincet1
2. STUDENT CREDIT CARD
These cards are designed to approve students and you can upgrade them when you graduate. Many don’t have the lowest APRs or best rewards out there, but you’ll have a good shot of getting approved and can start building better credit.
3. GET A CO-SIGNER
A co-signer is simply someone who agrees to be responsible for the loan if you stop paying your bills for any reason.
A willing parent or significant other who uses credit responsibly can help your credit score by co-signing on a loan. It’s also possible to get an unsecured credit card using a co-signer. Be sure that you and the co-signer understand that the co-signer is also liable to pay the debt if you default or miss payments.
4. APPLY FOR A SECURED CREDIT CARD
A secured credit card is designed for people new to credit. Secured credit cards often have:
- Lower credit limits ($300-$500)
- An annual fee
- Higher interest rates
- Limited or no rewards
Some starter credit cards are also secured credit cards. What this means is that you need to have money in a bank account equivalent to your credit line. Banks may hold the equivalent of the credit limit for a year, so if you default they use the secured amount to pay off your debts.
it’s not a debit card, where every purchase you make is deducted from your balance.
You’ll use the card like any other credit card: Buy things, make a payment on or before the due date, incur interest if you don’t pay your balance in full. You’ll receive your deposit back when you close the account or at a predetermined time such as a year.
Choose a secured card with a low annual fee and ask the bank or institution if it reports to all three credit bureaus, Equifax, Experian and TransUnion.
5. RETAIL CARD/STORE CARD
Many people’s first credit card is a retail or store credit card. You know, the ones every sales clerk at the mall asks you to apply for when you check out. You’ll get 25 percent off your flight!
Store credit cards have high interest rates, but store credit cards typically have lower credit limits than major credit cards. That means stores are willing to approve applicants with less credit history.
6. Self Lender
Self Lender is an innovative new company, is a good option. Self Lender lets you build credit by lending money to yourself.
Self Lender deposits $1,100 in a CD on your behalf, and you pay them back in monthly installments of $97. You’ll pay a low interest rate (lower than most credit cards), and just $12 in administrative fees. And, at the end of a year, you’ll have the beginnings of a healthy emergency fund.
7. BECOME AN AUTHORIZED USER ON SOMEONE ELSE’S CREDIT CARD
A family member or significant other may be willing to add you as an authorized user on his or her card. As an authorized user, you’ll enjoy access to a credit card and you’ll build credit history, but you aren’t legally obligated to pay for your charges.
Ask the primary cardholder to find out whether the card issuer reports authorized user activity to the credit bureaus. That activity generally is reported, but you’ll want to make sure — otherwise your credit-building efforts may be wasted.
8. STUDENT LOANS
While federal student loans are available to anyone, regardless of credit score, they still help you build credit as you pay them off.
9. GET CREDIT FOR THE RENT YOU PAY
Rent-reporting services such as Rental Kharma and RentTrack take a bill you are already paying and put it on your credit report, helping to build a positive history of on-time payments. Not every credit score takes these payments into account, but some do, and that may be enough to get a loan or credit card that firmly establishes your credit history for all lenders.
Build your score with good habits
Building a good credit score takes time, probably at least six months of on-time payments.
10. APPLY FOR A CREDIT-BUILDER LOAN
The money you borrow is held by the lender in an account and not released to you until the loan is repaid. It’s a forced savings program , your payments are reported to credit bureaus. These loans are most often offered by credit unions or community banks. They have their fees and cost associated with them.
If you take out a small personal loan and repay it on a timely fashion, this will build your credit. Use it to buy something like an appliance or coach.
Rules you should follow
- Do not buy more than you can afford
- Pay your card off in full
- Try not to pay interest
- Pay your bills on time
- Do not max out any of your cards
Now go get that score up!
About Vince Tran,

Vince Tran is a millennial with a passion for water. He currently is working at Barclays and deals with credit cards and small loans. Overall, he would like to connect please follow and send a direct message to him, he will answer.
LinkedIn: Vince Tran
Instagram: vince_v.e.t
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