How Do You Build Credit? A Simple Guide to Start Today

If you’ve ever wondered how do you build credit, you’re not alone. A strong credit score can help you get approved for loans, rent an apartment, and even secure better insurance rates. Some employers also conduct credit checks during the hiring process, meaning a good credit history could lead to more career opportunities. Learning how to build credit the right way can open more doors and save you money over time.

How Do You Build Credit From Scratch?

Understanding how you build credit starts with knowing what makes up a credit score. Your credit score ranges from 300 to 850 and is based on five main factors:

• Payment History (35%): Paying your bills on time is key.
  
  
• Credit Utilization (30%): Keep balances low on your credit cards.
  
  
• Length of Credit History (15%): The longer you’ve had credit, the better.
  
  
• Credit Mix (10%): A mix of credit cards and loans can help.
  
  
• New Credit (10%): Don’t open too many new accounts at once.
  
  

To build credit, focus first on making on-time payments. Even one missed payment can hurt your score. If you’re new to credit, start with a secured credit card or a credit builder loan to create a positive payment history.  You can learn more about what goes into your credit score from the  Consumer Financial Protection Bureau.

How Do You Build Credit Without a Credit Card?

Many people ask how do you build credit if you don’t want a credit card. The good news is, you don’t need a credit card to grow your score. Here are other ways:

• Credit Builder Loans: These loans hold your payments in a savings account while you build credit. Once the loan ends, you get your money back, minus interest.
  
  
• Report Rent and Bills: Use services that report your rent or utility payments to credit bureaus.
  
  
• Become an Authorized User: A trusted friend or family member can add you to their credit card, and their good habits help your score.

For more ways to safely build credit, visit MyCreditUnion.gov, which offers helpful tips and tools.

Start Building Credit with Cheers

If you want a faster, simpler way to build credit, Cheers Credit Builder is a great tool. You don’t need a credit check to join, and it only takes about three minutes to sign up. With Cheers, you pick a loan plan and make fixed monthly payments. These payments are saved in an FDIC-insured account, and Cheers reports them to all three major credit bureaus: Experian, Equifax, and TransUnion every month.

Here’s why many people are using Cheers to build credit:

• No membership or setup fees, just a low 1% monthly APR.
  
  
• Your first payment is reported faster, by the next business day.
  
  
• You build credit while saving money, not by spending it.
  
  

Cheers is especially helpful if you’ve never had installment credit before. It helps add variety to your credit mix, which can improve your score over time.

Sarah’s Story: Building Credit from Zero

Let’s look at Sarah, a recent college graduate who moved to a new city for her first job. She had never used a credit card and didn’t have any loans, so she had no credit history. When she tried to rent an apartment, her landlord told her she needed a credit score.

Sarah asked herself: How do you build credit when you’ve never borrowed before?

She started by opening a secured credit card with a $200 deposit. She used it for small expenses, like groceries, and paid it off every month. She also signed up for a credit builder loan through a fintech app. Each month, she paid $25, and the app saved her money in a secure account. Every month, these payments were reported to all three credit bureaus.

Within six months, Sarah’s credit score went from nonexistent to 680. She was able to rent her apartment, and now she’s working on reaching 700+.

*Cheers is not a bank. Deposit accounts held by partner banks, Member FDIC.

How Do You Track Progress?

After you start building credit, it’s smart to check your credit reports. You can get a free report every year from each bureau at AnnualCreditReport.com. Watch for mistakes and make sure all your payments are showing up.

To keep building your score:

• Keep credit card balances below 30% of your limit.
  
  
• Always pay on time.
  
  
• Don’t apply for too much new credit at once.
  
  
• Keep old accounts open to build a longer history.

How Do You Build Credit in 2025? Use Tech to Help

In 2025, it’s easier than ever to build credit with the help of apps and fintech tools. Many people are now asking, how do you build credit using technology?

If you want to take action today, here are 5 useful websites that can help you start building credit in 2025:

1. Check your credit report for free at annualcreditreport.com to know where you stand and catch any errors early.
   
   
2. Apply for a secured credit card through platforms like Discover to establish a safe payment history.
   
   
3. Open a credit builder loan with Cheers to automate payments and build credit while saving money.
   
   
4. Report your rent payments using services like RentReporters to add more positive history to your credit profile.
   
   
5. Use budgeting apps like Credit Karma that not only monitor your credit but also offer personalized recommendations.
   
   

Using the right tools makes the process smoother, but the basics never change — on-time payments, low balances, and monitoring your credit regularly are still the foundation for building strong credit.

Conclusion

If you’ve been wondering how do you build credit, remember this—good credit helps you get better deals, lower interest rates, and more options in life. Building credit takes time, but you can make real progress with the right steps. Start small, stay consistent, and use tools that make the process simple.

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