What is the best way to start building credit as a beginner?

Open one account that reports to credit bureaus and make on-time payments every month to establish a positive history.

What credit score is considered good?

A score above 670 is typically considered good by most lenders.

If you are new to credit, this guide will help you understand how credit works and what you can do right now to start building a positive history.

Step 1: Learn What Credit Means

Credit is the ability to borrow money and repay it responsibly. The three main credit bureaus are Experian, Equifax, and TransUnion.

Step 2: Understand Credit Scores

Credit scores range from 300 to 850. Higher scores indicate lower risk to lenders and often result in better loan terms.

Step 3: Start with Simple Tools

Begin with a credit-builder app such as Kikoff, Ava, or Firstcard. These tools are safe, low-risk, and help you establish a payment history quickly.

Step 4: Make On-Time Payments

Always pay bills before their due date. Late payments can damage your score significantly.

Step 5: Check Your Report Regularly

You can view your credit report for free once a year at AnnualCreditReport.com. Review it for errors and track your progress.

Continue Learning

For more guidance, read How to Build Credit with No Credit History and see how these concepts work in practice.