How to build or rebuild your credit

Your plan, step by step

Timelines are a guide. Everyone's starting point is different.

1. 1

   Right now

   Start from accurate reports

   • Pull your free reports from all three bureaus at AnnualCreditReport.com. If you've never had credit, you may not have a report yet, and that's normal.
   • Dispute anything that's wrong. Errors are worth fixing before you add anything new.
   • Decide what you can comfortably spend each month on credit building, even if it's nothing.
2. 2

   Month 1

   Open one account that reports

   • Pick one account that reports to the bureaus: a credit-builder account or loan, a secured card, or reporting for rent you already pay.
   • Set up autopay right away. A single late payment can undo months of progress.
   • If you use a card, keep the balance small and pay it in full.
3. 3

   Months 2 to 6

   Let the history build

   • Keep every payment on time. This is where most of the progress comes from.
   • Check your reports every few months to confirm your payments are showing up.
   • Avoid applying for lots of new credit at once.
4. 4

   Months 6 to 12

   Grow carefully

   • Once you have six months or more of history, you may qualify for more options. Add only what you'll actually use.
   • Keep your oldest accounts open to protect the length of your history.
   • Keep each card's balance low compared with its limit.

Tools that can help

• Credit buildersAccounts and loans that report your payments.
• Secured credit cardsCards backed by a refundable deposit.
• Rent and bill reportingTurn rent you already pay into credit history.
• Credit builders for $10 a month or lessLow-cost options sorted by price.
• Credit builder cost calculatorSee what a credit builder really costs over time.

Frequently asked questions