Building a strong credit history in the United States is essential for almost everything: renting an apartment, financing a car, getting approved for credit cards with rewards, and even applying for some jobs. But what if you’re starting from scratch? Whether you’re a young adult, a recent immigrant, or someone who has never used credit before, you’re not alone.
The good news is, it’s entirely possible to build credit from zero in the U.S., even if you don’t have any prior history. With the right tools, discipline, and strategy, you can start building a solid credit profile that opens doors to better financial opportunities.
In this guide, we’ll walk you through exactly how to build credit step-by-step, which tools are available to help, and what to avoid on your journey to a great credit score.
Why Building Credit in the U.S. Is So Important
In the U.S., your credit score is a key indicator of your financial trustworthiness. The higher your score, the easier it is to:
Get low-interest loans and credit cards
Qualify for apartment leases without a co-signer
Finance a car or home with favorable terms
Save on insurance premiums and utility deposits
Even pass background checks for certain jobs
If you don’t have a credit history, it’s crucial to start building it now to avoid future limitations.
1. Apply for a Secured Credit Card
One of the easiest ways to start building credit from zero is by opening a secured credit card.
How it works:
You make a refundable deposit (typically $200–$500)
Your deposit becomes your credit limit
You use the card responsibly and pay it off on time
After 6–12 months of on-time payments, many issuers will upgrade you to an unsecured card and return your deposit.
Tip: Choose a card that reports to all three major credit bureaus: Experian, TransUnion, and Equifax.
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2. Report Rent, Utilities, and Subscriptions to Credit Bureaus
If you’re paying rent, utilities, or subscriptions, don’t let those on-time payments go unnoticed. You can use apps and services to report these payments to the credit bureaus and strengthen your profile.
Tools to consider:
Experian Boost – adds utility and streaming payments to your FICO score
LevelCredit or Rental Kharma – report on-time rent payments
Grow Credit – uses subscription payments like Netflix or Spotify to help build credit
This is a great option for those who don’t qualify for credit cards yet.
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3. Become an Authorized User on Someone Else’s Credit Card
If you have a trusted family member or friend with good credit, ask to become an authorized user on one of their cards.
Benefits:
You inherit part of their positive credit history
You’re not legally responsible for the balance
Helps improve your average credit age and utilization rate
Just make sure they pay their bills on time and keep balances low, since their behavior affects your credit.
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4. Use a Credit Builder Loan
Credit builder loans are designed specifically to help people with no credit history start building one.
How they work:
You make monthly payments to a locked savings account
Once the loan is paid off, the money is released to you
Your payments are reported to the credit bureaus
These loans are often available from credit unions or fintech platforms like:
Self
SeedFi
Kikoff
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5. Keep Your Credit Usage Low and Pay On Time
Once you start using credit, managing it properly is key. Two of the biggest factors affecting your credit score are:
Payment history (35%)
Credit utilization (30%)
Best practices:
Keep balances below 30% of your credit limit (ideal: under 10%)
Always pay your bill on time, even if it’s the minimum
Avoid applying for multiple credit accounts at once
Use free apps like Credit Karma or Experian to monitor your score
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6. Monitor Your Credit Reports and Score Regularly
You’re entitled to one free credit report per year.
Monitoring your reports helps you:
Catch errors or fraud
Track your credit-building progress
Understand how actions affect your score
Also, apps like Credit Sesame, CreditWise, and Chime Credit Builder offer score tracking and helpful insights.
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Bonus: Don’t Fall for Quick Fixes or Bad Advice
When starting from zero, it’s tempting to take shortcuts—but some can actually hurt your credit.
Avoid:
Applying for too many credit cards at once
Paying someone to “erase” your bad or nonexistent history
Taking out payday loans or other high-risk, high-interest debt
Always stick to safe, verified methods from trusted institutions and apps.
Conclusion: Start Small, Think Long-Term
Starting from scratch may feel overwhelming, but building credit in the U.S. is totally achievable. With the right steps and consistent habits, you can go from zero to excellent credit within a year or two.
Let’s recap the steps:
Get a secured credit card;
Use tools to report rent and bills;
Become an authorized user on a trusted account;
Try a credit builder loan;
Keep utilization low and pay on time;
Monitor your credit report regularly.