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Step 1
*Open a Bank Account* Show potential lenders you are responsibility and stable by opening a checking or savings account and use it frequently. Remember, that actions associated with the bank account, such as overdrawing funds, are not reported on your credit history.
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Step 2
*Apply for a credit card* A credit card opens a line of credit and reports activity to credit bureaus, becoming a part of your credit history. There are cards designed for students, business owners, and first time credit card holders. Be sure to apply for a card that meets your needs and circumstances accurately to avoid being denied.
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Step 3
*Use your credit card* Within the first year you have your card, be sure to make small purchases on the card and then pay off the entire balance at the end of the month. Be sure you keep your balances at a low, manageable level and always make your payments on time.
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Step 4
*Apply for an installment loan* Installment loans include things like car loans, or financed loans for items. Keep the minimum payment amounts manageable for your budget and always be sure to make your payments on time.
