When you want to borrow money, lenders will look at your credit history to help determine your risk level. For example, lenders will want to know if you have a history of paying your bills on time. This is important if you plan on getting a mortgage, car, or other large purchase. If you miss a payment, it could be reported to a debt collector and affect your score.

Credit cards are one of the best tools for building good credit. You should pay your balance off every month. Not only does this show that you can manage your debt, it also increases your credit score.

Another good way to build a credit history is to apply for a line of credit. It's also a good idea to set up autopay. Having your payments automatically deducted from your bank account will help you remember to pay your bills, which will also be a plus for your credit score.

Building a credit history can be challenging. You need to find a balance between applying for the right type of credit and not applying for too much. Applying for multiple cards can be a red flag to lenders, so you'll need to space your applications out.



If you have no credit history at all, you may be limited in what you can get approved for. However, there are plenty of options for establishing credit. These include a secured card, a prepaid card, or even a store card.