Start Building Credit

building credit

Credit is a tricky subject. To start building credit you need to be approved for a credit card or a loan. And to be approved for a credit card or a loan, you need to have a good credit history. How can you have a good credit history when you have not even begun building credit because you cannot get approved for a credit card or loan?! Confusing, right?

Luckily, there are some ways to get through the maze of roadblocks and begin building credit from nothing.

Authorized User

The first way to begin building credit requires no work. All you would need is a trusted individual who would place you as an authorized user on one of their credit card accounts. You would receive a card (that you do not have to use once) that is linked to their account. And as the account holder is making their payments, you are building your credit as well. However, just as easy as it is for them to build your credit, they can also ruin it with missed payments. Make sure you trust this person; your credit score depends on it.

Credit Cards

If you do not have someone who can add you as an authorized user, you can always get a credit card for yourself. There are a few options that are less stringent and will accept those with little to no credit history. The most common is the secured credit card. A secured credit card requires you to pay a security deposit, that you only receive once you close the account and do not owe any money. Student and retail credit cards are also good options that have high approval rates. Each credit card has its own requirements but for the most part, you do not want to be charged an annual fee, be required to pay interest, or need to have a balance to build credit.


If you do not want to deal with credit cards, loans are another option. It is highly advised not to take out a loan strictly for building credit, but if you are already taking out a student loan, or any other large loan, use it to your advantage. All student loans are building credit as long as they remain in good standing. But if you are not a student, you can always take out a credit-builder loan. When you get approved for this loan, the funds are put into an account that you do not have access to until you pay off the loan. As you are paying it off, that is being reported to the credit bureaus and you are building credit.

Having credit is the first step but you should strive to receive the excellent rating that most lenders look for. There are some things you can do to guarantee you are on your way to a great rating.

  • Pay your bills on time. The biggest thing that affects your credit score is payment history. Therefore, it is so important to make sure you make complete or minimum payments on time.
  • Monitor card usage. It does not look good to use your complete credit balance. It is highly recommended to stay under 30% of your credit limit.
  • Open multiple accounts. Having a variety of different loan and credit card accounts open looks good. It showcases that you can manage and maintain multiple accounts.

Got Medicare Questions?

We hope this information on building credit is helpful to you.

If you have questions about your Medicare coverage, call Empower Brokerage today. Let us help with your Medicare questions so you can get back to the activities you enjoy the most. (888) 446-9157 or click here to get an INSTANT QUOTE

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About Kayla Gonzalez

Kayla Gonzalez is a graduate of Texas A&M University and joined the Empower Brokerage marketing team in early 2021. She creates content for the company websites and assists with various marketing campaigns. LinkedIn Profile

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