How to Build Credit

Phase I: Establish Credit (Month 1-3)

1. Apply for a Secured Credit Card (Deposit required, but refundable)

Best Options:

- Discover it® Secured 🔗 Apply Here

- Capital One Platinum Secured 🔗Apply Here

- OpenSky® Secured Visa® (No credit check) 🔗Apply Here

1. Deposit at least $200-$500 for a credit limit.

2. Use only 10% or less of the limit ($20-$50 if $500 limit).

3. Pay off in full before the due date.

4. Make double (smaller) payments in the same month to increase your credit score.

5. This will record two successful payments in month.

2. Become an Authorized User on a Family Member’s Card

Did you know that becoming an authorized User, you inherit the credit history of the card holder showing on your credit?

1. Find someone with a credit card in good standing (age 3+ years, low balance, no late payments).

2. Their positive payment history will report to your credit file, increasing your score quickly.

3. Alternative: Try services like BoomPay (Learn More) to report rent payments as credit.

3. Take Out a Credit Builder Loan

Best Options:

- Self Credit Builder 🔗Apply Here

- CreditStrong 🔗Apply Here

1. Small monthly payments build credit history and savings at the same time.

2. Make double (smaller) payments in the same month to increase your credit score.

3. This will record two successful payments in month.

Phase II: Improve Credit Score (Month 4-6)

4. Open a Regular (Unsecured) Credit Card

Once your score reaches 600+, apply for:

- Capital One QuicksilverOne (Good for limited credit) 🔗Apply Here

- Petal® 2 "Cash Back, No Fees" Visa 🔗Apply Here

1. Keep utilization below 10% and pay in full each month.

2. Make double (smaller) payments in the same month to increase your credit score.

3. This will record two successful payments in month.

5. Start Reporting Rent, Utilities, and Subscriptions

- Use Experian Boost 🔗Sign Up Here to add utilities and phone bills.

- Use BILT to pay rent🔗 Sign Up Here for Rewards on Rent. Benefits in your neighborhood.

- Use Rent Reporters 🔗Sign Up Here to have rent payments counted toward your credit.

Full Proof Plan: Building Credit to 800+ Fast & Efficiently

Phase III: Maximize Credit Score (Month 7-12)

6. Increase Your Credit Limits

- Request a credit limit increase on your existing cards (lowering utilization helps your score).

7. Keep Accounts Open & Maintain Perfect Payment History

1. NEVER CLOSE old accounts (credit age matters!).

2. Always pay at least the minimum due (preferably full balance).

3. Make double (smaller) payments in the same month to increase your credit score.

4. This will record two successful payments in month.

8. Monitor Your Credit Weekly

Free Credit Monitoring Tools:

- Credit Karma 🔗Sign Up

- Experian Free Report 🔗Check Here

Paid Premium Monitoring:

- myFICO Ultimate 3B 🔗Sign Up

- Identity Guard 🔗More Info

Phase I: Laying a Strong Foundation (Month 1-6)

- Follow Steps 1-5 from Urgent Plan - Scenario I.

- Start a Small Auto Loan or Personal Loan (just a suggestion).

- Installment loans improve credit mix and history.

1. Make on-time payments and pay down before due date.

2. Make double (smaller) payments in the same month (records double) to increase your credit score.

3. This will record two successful payments in month.

Phase II: Building Long-Term Credit Strength (Month 7-18)

3. Diversify with a New Credit Card (after 1 year)

If scores are above 680+, apply for:

- Chase Freedom Unlimited (Great rewards and no annual fee)

- American Express Blue Cash Everyday

1. Keep old cards open, even if rarely used.

2. Make double (smaller) payments in the same month (records double) to increase your credit score.

3. This will record two successful payments in month.

Suggested Plan: Building Credit to 800+ Fast & Efficiently

4. Start Investing & Emergency Savings

- Open a high-yield savings account (Ally, Marcus, or Capital One 360).

- Contribute $25+ per month to build financial security.

- Start investing in ETFs or index funds for future wealth. 🔗Investor.gov

Phase III: Reaching 800+ Score & Homeownership Readiness (Year 2+)

5. Keep Credit Utilization Below 5% & Maintain 100% Payment History

1. Keep old cards open, even if rarely used.

2. Make double (smaller) payments in the same month (records double) to increase your credit score.

3. This will record two successful payments in month.

6. Get a Mortgage-Ready Credit Profile (If Homeownership is a Goal)

- Make sure debt-to-income ratio is below 36%.

- Have a credit mix (revolving & installment loans).

- Maintain at least 2-3 active credit accounts.

7. Pay Off Debt Efficiently

- Use the Avalanche Method (pay highest % first) or Snowball Method (smallest balance first for motivation).

- Consider student loan forgiveness options if eligible 🔗Check Here

Final Takeaways:

Follow this plan step-by-step and watch for a 700+ score in 6-12 months and 800+ in 2 years.

Always pay on time and keep balances low to maximize credit growth.

Use free credit monitoring tools to track progress.

Leverage secured cards, credit builder loans, and authorized users for a fast boost.

Think long-term by diversifying credit accounts and avoiding unnecessary debt.

Make double (smaller) payments in the same month (records double) to increase your credit score.