Menu Close

How To Build Your Credit Score in 3 Easy Steps

how to build your credit score

Need an Easy Extra $500+ a Month For Free?

Millennials make up a significant portion of Americans that are Credit Invisible or Credit Unscorable – those with no or low credit scores. That’s 80 percent of 18-19-year old’s and 40 percent of 20-24-year old’s that fit into these categories. Those are statistics that can’t be ignored. Those who are among the credit invisible group are vulnerable to predatory lending and face significant challenges in accessing most mainstream credit markets. To avoid being among the credit invisible for long, it’s never too early to start building and improving that credit score now. With 15 percent of your score based on your credit history, it’s important to take action today.

Here are three smart steps to take to build credit—so you can live a life by design, not by chance!

1) Use rental payment history services to improve your credit score.

make 300 quicklyWhether you live in a small apartment in Champaign, Illinois or a condo in New York City, rent payment history is becoming an important part of calculating credit scores. Proactively reporting monthly rent payments to the major credit bureaus enables you to build and boost your credit score. RentReporters is helping renters build and improve their credit scores by reporting their on-time rent payments to TransUnion, one of the three major credit bureaus.

2) Become an authorized user on your parents or spouse’s credit cards

make $300 fast if they have good credit. Being an authorized user and paying those debts on time adds positive credit history to your own credit files, even before you can qualify for your own card. And when you can get your own credit card, use it responsibly. Beware of applying for multiple credit cards especially in a short period of time. Each of the related ‘hard inquiries’ can hurt your credit score and if you could also be seen as a risky borrower.

3) Pay your bills on time

inboxdollars make money Thirty-five percent of your credit score is based on your payment history, and late payments can hurt your score. It’s easy to solve this by setting up auto payments and reminders so that you don’t ever miss a payment. You need to treat your rent just like any other bill – it needs to be paid on time. If you don’t pay your rent or if you’re late with your payments, your landlord can report you to the credit bureaus.

Nathan Silvers

Nathan is a student living in the United States. He is a fan of personal finance, investing, photography, technology, and design. When not writing articles or studying he can be found cycling around Denver.

Ⓘ Related Tools:

Interested in making extra money? Survey Junkie allows you to take surveys and get paid up to $50 per survey which take less than 5 minutes each. Join 8,145,798 members on Survey Junkie now by signing up or simply compare leading ways to make money in the table below.
CompanyWhat You NeedEarning Potential
fundrise trustpilot$500 to Invest in Real Estate8.7 – 12.4% Annual Returns

Learn More

surveyjunkie make money

SmartphoneUp to $50 Per Survey

Learn More


rovermakemoney

Be a Dog-Lover (or cat!)$250 Per Week

Learn More

lyftlyft trustpilotVehicle$60 Per Day

Learn More

airbnbairbnb trustpilotApartment or House$650 Per Week

Learn More

Powered by My Millennial Guide

Related Posts

Need Cash Now?
zippyloan

If you actually need money now, then you can opt for a personal loan. When you need money in a hurry ZippyLoan is where to go.

You apply for a loan through the ZippyLoan site, if approved they send your loan application to one of many loan providers.

You review the loan details and e-sign if you like what you see. No risk in checking what offers you'll get. You can borrow between $100 and $15,000 as soon as tomorrow.

Loans service for up to 60 months.

ZippyLoan connects borrowers to lenders through their network of lenders. They'll find you the lowest interest rate and is one of the best no credit check loan. You can visit ZippyLoan here.

shares