how to build credit for the first time?

Building credit for the first time?

The process can be pretty straightforward, and the good habits you build will work for the rest of your life.  Above all, always pay your bills on time and try not to have too much debt at one time.

There are a lot of ways to start building credit for the first time.

• Secured Credit Cards:

1. 1. 1. These work like a regular credit card, only you must first deposit money into an account. The card lender will then give you a line of credit equal to the amount you’ve deposited. Otherwise, this functions exactly like a regular credit card. If you always pay on time, many banks will allow you to “upgrade” to a traditional credit card.

• Credit Builder Loans

1. 1. 1. These are loans specifically designed for you to build credit. You deposit a small amount of money at the bank, and then “pay back” the amount you deposited over 6 – 24 months. Afterwards, you get your full deposit back. This builds credit by showing your ability to pay things back on time.

• Retail Store Credit Cards

1. 1. 1. These are the Credit Cards offered at department and retail stores, or gas stations. These are typically easier to open than a traditional credit card, and let you start buying things on credit. As always, pay your bills on time!

• Other Methods

1. 1. 1. Rent reporting: Rent reporting services can help you build credit by showing that you consistently pay rent on time. You can also do this through Kikoff!

• Cell Phone and Utility Payments:

1. 1. 1. Certain services, like Experian Boost, allow you to report your cell phone, water, electrical, and other utility payments to credit bureaus. This can help boost your score by showing even more on-time payments.

A Kikoff Credit Account can also help you build credit, whether you’re just starting or have established credit. You can sign up in minutes, and starting at $5 a month, you can build a credit history by using a $⁨750⁩ line of credit to use for Kikoff purchases. This doesn’t expire, so you can build credit on your schedule.