Having good credit can help you qualify for things like a loan, a credit card, an apartment, and sometimes even a job. If you do not have credit or are looking to improve it, there are steps you can take.
When people talk about your credit, they are referring to your credit history, which shows how you manage money.
To build a credit history, you need to pay bills that get reported to the credit bureaus. Credit cards, including secured credit cards, are common tools for starting or building credit because they report your payment activity.
Learn more about how credit cards work by visiting Getting a Credit Card.
You may not have a credit history if:
Without a credit history, it can be harder to qualify for a job, rent an apartment, or be approved for a loan or credit card. It may feel frustrating—you often need credit to get credit.
Building credit takes time, but it is possible if you:
Check your credit report regularly to make sure the information is accurate. Visit Checking Your Credit Report to learn how to get a free copy.
Some people hire credit repair companies to help fix mistakes on their credit reports. However, anything a credit repair company can do legally, you can do yourself for little or no cost.
A credit repair company cannot remove negative information from your report if the information is accurate. If they claim they can, it is a scam. Watch out for these warning signs:
If you spot a credit repair scam, report it to the Federal Trade Commission:
Information provided by the Federal Trade Commission. Learn more at consumer.gov.
