How to build up your credit from scratch

How to build up your credit from scratch

Q: I’ve never had a credit card and my credit history is non-existent. I’m ready to build up my credit from scratch. Where do I start?

A: Building a credit history from the bottom up can be tricky. It may take a while until you see results. With time, effort, and responsible financial choices, you can build an excellent credit history.

Here are a few steps you can take to get the ball rolling on your credit file.

Visit TruMark Financial 

Stop by TruMark Financial to speak to a member service representative about opening your first credit card right here. If you are between the ages of 18 and 26, TruMark Financial offers a Smart Start Rewards Visa credit card which is designed to help young adults build good credit while learning to use it responsibly.

Use your cards responsibly

It’s not enough to have credit cards open in your name; you need to use them. You must be careful to spend just a bit each month and keep your credit utilization at less than 30%. Also be vigilant about paying your bill in full and on time each month. You could also set up an automatic payment so you never miss a payment.

Become an authorized user

If you have a family member or partner who has an excellent credit score and a credit card that they’ve had for a while, ask them about making you an authorized user on their card. This will add the card’s payment history to your growing credit file and can significantly increase your score. Keep in mind, any time you use the card, the primary account holder will be responsible for paying the bill. Also, find out whether the card issuer reports authorized user activity to the credit bureaus so this step isn’t wasted.

Smart financial decisions start with knowing exactly what you’re getting. TruMark Financial is here to help. Call 1-877-TRUMARK, click here, or visit a branch to learn more.