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Beginner Guide

How to Build Credit From Zero

By Sarah Mitchell, AFC® · 10 min read · Updated March 2025

Last updated: March 2025

No credit history is different from bad credit. Bad credit means you had credit and made mistakes. No credit means you are starting fresh — like a blank page.

The good news: starting from zero is actually easier to fix than bad credit. Here is how to go from nothing to a good score in about 12 months.

Step 1: Get a Secured Credit Card

A secured credit card is the easiest card to get because you put down a deposit. You give the bank $200. They give you a $200 spending limit. If you do not pay, they keep the deposit. Because they have your money as security, they approve almost everyone.

The best one to get is the Discover it Secured. It has no annual fee and earns 2% cash back. After 7 months of on-time payments, Discover reviews your account and often upgrades you to a regular card and returns your deposit.

Step 2: Use It for One Small Thing Every Month

Do not buy things on the card that you cannot afford with cash. Instead, pick one small recurring expense — your Netflix subscription, your phone bill, or a tank of gas. Put that on the card each month.

Then pay the full balance before the due date every single month. This builds a perfect payment history without any risk of debt building up.

Step 3: Keep the Balance Very Low

Your credit utilization affects your score a lot. If your limit is $200, try to never have more than $40–$60 on the card at any time. That keeps your utilization below 30%, which helps your score.

Step 4: Ask Someone to Add You as an Authorized User

This is the fastest shortcut. If your parent, sibling, or spouse has a credit card they have had for many years with no late payments, ask them to add you as an authorized user. Their history on that card shows up on your credit report instantly — potentially adding years of good history in one day.

You do not need to use the card or even hold it. Just being listed is enough to get the credit history boost.

Step 5: Wait and Watch Your Score Grow

Your first credit score will appear after about 3–6 months. It will not be amazing — probably 580–620. That is fine. Keep paying on time, keep the balance low, and watch it climb. By month 12, most people are in the 660–700 range. By month 18, many reach 700+.

❓ What if I am under 21?
You can still get a student card or secured card. You just need to show some income — a part-time job counts. If you have no income at all, having a parent cosign is another option, though most of the cards on this page do not require a cosign.
❓ How many cards should I start with?
One. Start with one card. Use it for one year. Build a good history. Then if you want, add a second card. Having too many cards too fast looks risky to lenders and can hurt your score temporarily.
❓ Should I use my debit card instead?
Debit cards do not build credit at all. When you spend with a debit card, that activity never gets reported to the credit bureaus. Only credit cards (and loans) build your credit history.

Now check which cards match your score

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