How to Build Up Your Credit From Scratch

Authored By: Community Financial Credit Union on 4/28/2020
If you’ve never had a credit card and your credit history is non-existent, where do you start? Building
a credit history from the bottom up can be tricky business. It may take a while until you see results. But, with time, effort and responsible financial choices, you can build an excellent credit history, which will positively impact your financial health for years to come.

Here are 5 steps you can take to get the ball rolling on your credit file.

1. Talk to Community Financial
Speak to a friendly Community Financial representative about opening your first credit card right here. We offer most of our members introductory credit cards even when they don’t have a substantial credit history. Check out our current low-rate card options at

2. Open a secured credit card
Secured credit cards are starter cards requiring you to make a deposit of several hundred dollars before you can open a credit line in that same amount. The deposit is held as collateral in case of a missed payment. After eight or 12 months, you will get your deposit back if there is no outstanding balance on your card. You may then be able to close your account and open an unsecured credit card. 

Community Financial offers our Platinum and Platinum Rewards Mastercard as secured credit cards. Secured credit cards are not long-term solutions, but they are great first credit cards since almost anyone can qualify.

3. Use your cards responsibly
It’s not enough to have credit cards open in your name; you need to use them, too. With a starting balance of $200 or so, you’ll have to be careful to spend just a bit each month and keep your credit utilization at less than 30%. You’ll also have to be vigilant about paying your bill in full and on time each month. You can set up an automatic payment so you never miss a bill.

4. Become an authorized user
If you have a family member or partner who has an excellent credit score and a credit card that they’ve had for a while, ask them about making you an authorized user on their card. This will add the card’s payment history to your growing credit file and can significantly increase your score.

Keep in mind, though, that any time you use the card, the primary account holder will be responsible for paying the bill. Also, find out whether the card issuer reports authorized user activity to the credit bureaus so this step isn’t wasted.

Your Turn: How did you build your credit file? Tell us about it in the comments.

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