We live in a credit-driven world, so if you have a low or no credit score, you might be getting through life without having a credit card. That can be challenging since you always need cash readily available to buy what you need.
It’s the catch-22 of credit. If you want a credit card, you need a credit score, but you get a credit score by using credit cards. If you’re like the millions of Americans applying for their first credit card, where does that leave you?
Don’t fret. By taking these simple steps, you can start building or boosting your score.
Become an authorized user on someone’s credit card
Do you have a parent, relative, or close friend with good credit? If so, you can ask them to add you as an authorized user to their credit card. If they agree, then your credit score can benefit if they have a good payment history on that account.
Get a secured credit card
Secured credit cards can help you boost or build your credit score. These cards work by having you provide a refundable deposit, just as you would when renting an apartment or home, and your payment history is reported to the credit bureaus.
Pay your bills, including rent, on time
Your payment history plays a key role when calculating your credit score.
With a plan, you can start building or boosting your score so that you can get that first credit card. Just remember to keep your credit utilization ratio below 30% and pay your credit card bill on time.