Build Credit
Your credit score is a number (300-850) that lenders use to predict whether you'll pay them back. Higher score = cheaper loans, easier apartments, better cards.
What goes into your score
FICO uses five factors. Two of them matter most.
- Payment history (35%) — pay on time, every time.
- Credit utilization (30%) — keep balances under 30% of your limit, ideally under 10%.
- Length of credit history (15%) — older accounts help; don't close your oldest card.
- Credit mix (10%) — having different types (card + loan) helps a little.
- New credit (10%) — too many applications at once dings you.
How to start from zero
If you've never had credit, lenders can't see how you behave. Two beginner-friendly options: a secured credit card (you deposit $200, that's your limit) or becoming an authorized user on a parent's card.
Habits that compound
Set every card to autopay the full statement balance. Check your score monthly via Credit Karma or your bank — checking your own score never hurts it. Don't chase rewards if you can't pay in full; APRs of 25%+ wipe out any cashback.
Glossary
- APR
- Annual Percentage Rate — the yearly cost of borrowing on a card or loan.
- Utilization
- Balance ÷ credit limit. Lower is better.
- Hard inquiry
- When a lender pulls your full report (e.g. applying for a card). Drops score ~5 points.
- Soft inquiry
- Checking your own score, or pre-qualified offers. No impact.
Next steps
- Check your current score on Credit Karma (free).
- Set up autopay on every card you own.
- If you have no credit, look into a secured card from your bank.