New to Credit? Here’s How to Build and Improve Your Score from Scratch

We get it building credit from scratch can feel like trying to get your first job without any experience. You need credit to get credit. So… where do you even start?If you’re new to credit, the good news is that everyone starts somewhere and you don’t need a long history to begin building a solid score. Whether you’re 18 and just getting started, or new to the U.S. credit system, this guide will walk you through how to build and improve your credit score from scratch.

7 Credit Score Mistakes That Are Secretly Hurting You (And How to Fix Them)

Why a Good Credit Score Matters (Even if you’re starting from scratch)

Before we dive into the how, let’s quickly talk about the why having a good credit score helps you:

• Qualify for credit cards and loans
• Get lower interest rates
• Rent an apartment
• Set up utilities without big deposits
• Even land certain jobs (yes, some employers check!)

Steps to Improve your credit score from scratch

Step 1: Start With a Secured Credit Card

What is it? A secured credit card is designed for beginners. You put down a deposit (usually $200–$500), and that amount becomes your credit limit. Why it works?

• Super low barrier to entry
• Reports to all three major credit bureaus (Experian, Equifax, TransUnion)

You can usse it for small purchases (like gas or streaming services) and pay it off in full every month. This builds a strong payment history, which makes up 35% of your score.

Step 2: Become an Authorized User on Someone Else’s Card

Ask a trusted friend or family member with good credit if they’ll add you as an authorized user on their card. Why it works?

• Their positive payment history can help build your score instantly
• You don’t even have to use the card yourself

Just make sure they use the card responsibly, or their bad habits could hurt your score too.

Step 3: Try a Credit-Builder Loan

A credit-builder loan is kind of like saving in reverse. You make small payments toward a loan, and once it’s paid off, you get the money. Why it works?

• Builds a positive payment record
• Often available through credit unions and apps like Self
• Bonus: You don’t need existing credit to get one.

Step 4: Use Experian Boost to Add Utility and Streaming Bills

Don’t have credit accounts yet? You can still get credit for bills you’re already paying. How to do it ?

• Sign up for Experian Boost
• Link your bank account to add payments for utilities, phone bills, or Netflix
• It gives you credit for on-time payments that don’t normally get reported.

Step 5: Keep Credit Utilization Low

Once you have a credit card, you’ll want to keep your balance low. Here’s a rule of thumb you must always remember

• Keep your usage under 30% of your limit
• Under 10% is even better for your score
• Example: If your card has a $500 limit, try not to carry more than $50 at a time.

Step 6: Always Pay On Time (No Exceptions)

This is the most important rule in credit and here’s why it matters:

• Payment history makes up the biggest part of your score
• Just one late payment can seriously ding your score
• Set up autopay or calendar reminders to never miss a due date.

Step 7: Check Your Credit Report Regularly

Even if you’re just getting started, it’s smart to keep an eye on your credit report. Where to check?

• AnnualCreditReport.com – Free reports from all 3 bureaus
• Apps like Credit Karma or NerdWallet for regular monitoring
• Always look for Errors or accounts that aren’t yours
• Missed payments you didn’t make
• Outdated information

Bonus Tips: What Not to Do When Building Credit

• Don’t apply for too many cards at once
• Don’t co-sign loans unless you truly understand the risk
• Don’t max out your card—even if you pay it off later

Conclusion Start Small, Grow Big

Building credit from scratch isn’t as intimidating as it seems. With the right tools and a little consistency, you can go from zero to a strong score in just a few months.

Quick Recap:

• Start with a secured card
• Become an authorized user
• Try a credit-builder loan
• Use Experian Boost
• Keep your utilization low
• Always pay on time
• Monitor your credit like a pro