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Establishing Credit

Good credit comes with many benefits. Not only do lenders look at your credit and credit history when deciding whether to loan you money, but employers, insurance companies and landlords consider your credit history as well. Because your credit history can help others make decisions about you, it’s important to learn the basics of establishing good credit early on.

Establishing Credit When You’re Young

Establishing credit and learning how to use it wisely can make your transition to adulthood so much easier. Start by having your parents include you as an authorized user or joint account holder on one of their credit cards. You can help them review the monthly statements and even help make payments.

Positive credit history, though, is about more than just being able to use a credit card to make purchases. Future employers might consider your credit history when you’re looking for your first job. It might even play a role when you’re getting your first apartment application approved, and it will be crucial when buying a car.

How Can I Add My Good Payment History to My Credit Report?

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Dear Experian, I have for a number of years attempted to correct my credit report to show my current mortgage, which is in good standing. No matter what I...

What Is a Credit Builder Loan?

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Dear Experian, My credit score is very low. I have no credit history other than recent hospital bills on my credit report. I get denied for everything: bank loans,...

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Dear Experian, I’m trying to establish a positive credit history. I’ve been paying my power bill and my telecommunications, internet and cable bills on time every month for over...

Does Leasing a Car Build Credit?

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Dear Readers, We are sometimes asked whether leasing a car can help you build credit and the answer is, yes it can. In terms of credit reports and credit...

Should I pay off my car loan early?

November 22, 2016

Dear Experian, I took out a car loan to help build my credit. I was thinking about paying if off in February. I would have had the loan for...

Should I get a secured loan to build my credit?

October 25, 2016

Dear Readers, A secured loan is any loan that is backed or guaranteed by collateral. This means that if you default on the loan payments, the lender can take...

How to Start Building Credit

September 6, 2016

Dear Experian, I’m currently a college student. How do I start building credit? Is having a credit card enough to establish credit while being a college student? –          KMA...

How Long Does It Take To Build Credit

August 9, 2016

Dear Experian, How long does it take to build credit? – ALM Dear  ALM, Building a positive credit history takes time. There is no quick fix and no way...

Using Credit Cards to Establish Your Credit History

April 11, 2015

Dear Experian, I have been approved for two credit cards with two different limits and interest rates. One offers cash back rewards. I am trying to build my credit....

Establishing Credit Before College

October 9, 2013

Dear Experian, I am a 19 year old college student trying to establish credit early, and it would be helpful throughout college to have a low limit credit card just...

Using Secured Credit Cards to Improve Credit History

September 10, 2013

Dear Experian, What is your opinion about using secured credit cards to improve credit history, especially if there is no current history (last entries were in 2004)? - PAS

Importance of Establishing Credit When Young

August 16, 2013

Dear Experian, Why is it important to establish credit while you're young? If I don’t establish any credit will it affect my future and why? - OZY

Qualifying for New Credit with No Credit History

August 1, 2012

Dear Experian, I have no credit score and am unable to get credit for a car loan. How do I get a credit score? I have my own apartment and...

Use Credit Cards and Pay Balances to Build Credit

September 14, 2011

Dear Experian, I am trying to rebuild my credit. Is it better to keep a zero balance on the credit cards that I have recently paid off or keep a...

Reestablishing Credit After Moving from Canada

July 20, 2011

Dear Experian, I recently moved here from British Columbia, Canada, and when I apply for a credit card here you deny it because you say my credit information is not...