Why you don’t have a credit score yet
Three credit bureaus, Equifax, Experian and TransUnion, keep a credit report on anyone who borrows: your cards and loans, and whether you’ve paid on time. A credit score turns that report into a number, but only once there’s enough to go on.
To get a FICO score, the one most lenders use, your report needs:
- at least one account that has been open for six months or more, and
- at least one account reported to the credit bureau in the last six months.
A debit card or paying bills in cash doesn’t count: nothing is borrowed, so nothing is reported. To build credit, you need an account that reports your payments.
Step 1: Check your credit reports
You can get your reports from all three bureaus free every week at AnnualCreditReport.com. If you’ve never borrowed, you may have no report at all, which is normal. If there’s one you don’t recognize, check it for mistakes or signs of identity theft before you go further.
Step 2: Pick your first account
| Option | How it works | Good to know |
|---|---|---|
| Secured credit card | You put down a cash deposit, for example $500, and that’s your credit limit. You use it like any card and pay the bill each month. | Compare fees before you apply, and check the issuer reports to all three bureaus. |
| Credit-builder loan | A bank or credit union holds the loan in a savings account. You repay it in installments, usually over 6 to 24 months, then get the money. | You build credit and savings at the same time. Ask your bank or a local credit union. |
| Authorized user | A family member adds you to their credit card. You get a card, but they’re the one responsible for the bill. | It only helps if they always pay on time, and if the issuer reports authorized users. Ask first. |
| Store card | A card for one store, usually with a low credit limit. | The low limit keeps spending in check. Pay in full each month to avoid interest. |
| Rent reporting | Your landlord reports your rent payments, sometimes through a rent payment app. | Ask your landlord if they take part in a rental reporting program, and check for fees. |
One account is enough to start. Opening several at once doesn’t build credit faster, and each application can count against you.
Step 3: Use it lightly and pay in full
- Set up autopay for at least the minimum, so you never miss a payment. Paying on time is the biggest part of a FICO score.
- Use a small part of your limit. Some experts advise using no more than 30% of your total credit limit, and others say less than 10%.
- Pay the full balance every month. You build the same history without paying any interest.
Try it: how much of your limit you’re using, and what lenders make of it.
30%
Good
Under about a third is fine for most scores.
A rule of thumb: scoring models differ, and paying on time matters most.
How long it takes
- Month 0: open your first account and set up autopay. Use it for one small regular bill, such as a phone plan or streaming service.
- Month 6: once the account is six months old and has been reported, you can have a FICO score.
- Month 12 and on: keep paying on time. If you have a secured card, ask the issuer whether you can move to a regular card and get your deposit back.
- After that: apply for new credit only when you need it. Your score grows with every month of on-time payments, and older accounts help, so keep your first card open.
Mistakes to avoid
- Missing a payment. A late payment can stay on your credit report for up to seven years. Bankruptcies can stay for up to ten.
- Applying for lots of credit at once. Each application can add a hard inquiry: it stays on your report for two years, and FICO scores count it for the first 12 months.
- Closing your first card. It’s your oldest account, and closing it lowers your total credit limit, which raises the share you’re using.
- Paying someone to build your credit fast. Everything in this guide is free to do yourself.
- Worrying about checking your own credit. Checking your own report or score never lowers it.
Under 21?
Card companies generally can’t give a credit card to anyone under 21 unless they can show their own ability to make the payments, such as income from a job, or someone 21 or older co-signs and agrees to pay if they don’t. A credit-builder loan or being an authorized user on a parent’s card are other ways to start.
Learn more
See credit scores explained for what makes up your score and how to raise it. Once you have a card, how to make a budget helps you pay it in full each month, and the credit card payoff calculator shows what carrying a balance costs.