No credit? Bad credit? Starting from zero? Here's what actually works to build or rebuild your credit score.
Credit scores are based on what's in your credit reports. If you have no credit history, you have no score. Here's what lenders want to see:
The most common path for building credit from scratch. You put down a deposit (usually $200-$500) as collateral, and you get a credit card with a limit equal to your deposit.
Tip: Look for cards that report to all three bureaus and don't have annual fees. Discover It Secured and Capital One Secured are popular choices.
Small loans designed for people with no or bad credit. You make monthly payments, and at the end of the loan term, you get the money back minus interest. The payments are reported to bureaus, building your history.
Where to get them: Local credit unions, Self Financial, Chime Credit Builder
Someone with good credit adds you as an authorized user on their old credit card. The card's history — 10, 15, even 20 years of on-time payments — appears on your report. You don't even need to use the card.
Warning: Make sure the primary cardholder is reliable. If they miss payments, it can hurt YOUR credit too.
Your rent payments can be reported to credit bureaus. Services like RentReporters, LevelCredit, and PRBC let you add your rental history to your credit file. One year of on-time rent payments can add 50-100 points for people with thin files.
If your limit is $500, never charge more than $150. Better yet, stay under 10% ($50). This is one of the fastest ways to boost your score.
Set up autopay for at least the minimum. A single late payment can destroy months of progress.
Closing a card reduces your available credit and can lower your average account age. Keep them open even if you don't use them.
Credit building takes time. You'll see progress in 3-6 months, significant improvement in 12-18 months. Don't apply for multiple cards at once — each application drops your score 2-5 points.