Quick answer
To build credit, open an account that reports to the credit bureaus, such as a secured card or credit builder loan, and pay it on time every month. Keep card balances low relative to limits, avoid opening many accounts at once, and check your credit reports for errors. Positive history adds up over months.
Credit is built the same way whether you are starting fresh or starting over: get an account that reports, use it lightly, and pay it on time for months in a row.
Step 1: Check where you stand
Get your free reports at AnnualCreditReport.com. If you have no file, nothing will show. If you have old problems, note them and dispute anything inaccurate.
Step 2: Open an account that reports
The CFPB lists these as ways to start or rebuild credit. Ask your bank or credit union which ones they offer:
| Tool | How it works | Tips |
|---|---|---|
| Secured credit card | Your deposit sets the limit | Use a little, pay in full |
| Credit builder loan | Payments go into savings, released at the end | Usually 6 to 24 months |
| Store or retail card | Low limit card | Avoid carrying a balance |
Ask whether the account reports to all three nationwide credit reporting companies.
Step 3: Pay on time, every time
According to myFICO, payment history is the largest part of a FICO score, about 35%. Set up autopay for at least the minimum.
Step 4: Keep balances low
Amounts owed, including how much of your available credit you are using, make up about 30% of a FICO score. The CFPB notes that experts advise keeping use at no more than 30% of your total credit limit, and you do not need to carry a balance to get a good score. Read credit utilization ratio.
Step 5: Add accounts slowly
New credit is about 10% of a FICO score. Opening several accounts in a short time can lower your score, especially with a short history.
Step 6: Be patient and keep accounts open
Length of credit history is about 15% of a FICO score. Keep your oldest no-fee accounts open and active.
What to avoid
- Credit repair companies that charge to remove accurate information.
- Maxing out a secured card, even if you pay it off.
- Payday loans and prepaid cards. The CFPB says payday loan payments are not reported to the nationwide credit reporting companies, even when made on time.
- Debit cards and cash, which do not show that you can repay borrowed money.
For more, see credit builder loans, how to get a loan with no credit history and what affects your credit score.
If you need to borrow while you work on your credit, use the form on this page to see whether partner lenders may have an offer, or call (800) 236-7761. Compare offers by APR and total cost.
Examples are illustrations, not offers. Approval, APR and terms depend on the lender, your state and your credit profile.
Frequently asked questions about how to build credit from scratch or after a setback
What is the fastest way to build credit?
Open a secured card or credit builder loan that reports to all three bureaus, pay on time every month, and keep card balances low.
Do debit cards or rent payments build credit?
No. The CFPB says debit card and cash payments typically are not reported to the nationwide credit reporting companies, because you are not borrowing money. If a service offers to report other bills, ask which bureaus it reports to.
How long does it take to get a credit score?
Scoring models need some account history before they can produce a score. Expect it to take months of reported activity, not days.
Does checking my own credit hurt it?
No. The CFPB says requesting your own credit reports is a soft inquiry and does not affect your scores.
Sources
- CFPB: What are some ways to start or rebuild a good credit history? (accessed 2026-10-09)
- myFICO: What's in my FICO Scores? (accessed 2026-10-09)
- CFPB: What is a credit inquiry? (accessed 2026-10-09)
- AnnualCreditReport.com (accessed 2026-10-09)
- CFPB: How do I get and keep a good credit score? (accessed 2026-10-09)
Last updated 2026-10-09. How we research and update pages.