How to Start Credit

Starting credit can feel like trying to join a club you’ve never heard of. Don’t worry—you’ve got this. Let’s break it down in a way that actually makes sense, so you can build your credit without feeling like you’re studying for a final exam.

Why Credit Even Matters
It’s not just about borrowing money—your credit can affect where you live, what you drive, and even some job opportunities. Think of it like your grown-up report card: the better it looks, the easier your life gets.

Secured Credit: Training Wheels for Your Credit Ride
If you’re new to credit, a secured card is your best friend. You’ll put down a cash deposit—say $200—and that becomes your credit limit. It’s like placing a safety net under yourself. Since the risk is low for the lender, you’re more likely to get approved. Use it, pay it off on time, and boom—you’re building a solid credit history.

Unsecured Credit: The Next Step Up
Once you’ve proven you can handle the basics, you can move on to unsecured credit. This is where you get a card or loan with no deposit required. Lenders trust you because you’ve shown you’re responsible. These cards often offer better perks, but you’ll need that track record first.