How To Build Credit At 18

Good credit is essential for gaining access to several fiscal opportunities in one’s life, as you could get reduced rates of interest on business loans, personal loans, and mortgage loans if you have a good credit history.

Before offering a job position to someone or approving a resident’s application, several companies and property owners review credit scores.

How To Build Credit At 18
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Even though it requires time to establish a strong credit record, use some of the following advice to build your credit from the age of 18!

How To Build Credit At 18

Learn The Fundamentals Of Credit

The first step is to understand the fundamentals of credit scores. The three largest credit reporting agencies, Experian, TransUnion, and Equifax, keep track of your credit scores.

It includes details about your present and previous debt payments, monthly payments, residential past, as well as other factual information. This information is provided by banks, lenders, and companies with which you have an account.

Your credit score is defined by the data in your credit file. Creditors and lending institutions prefer applicants with better credit ratings. Your score is affected by the following factors:

  • Payment history, or the extent to which you are punctual with your bills’ payments.
  • The average account period, or the amount of time your accounts have been active for.
  • Credit use percentage, or the amount of your available credit line you are presently using.
  • Account mix is an indicator of your ability to handle various kinds of accounts in a responsible way.
  • Inquiries, when you submit an application for new credit.

Certain of these variables might not always pertain to you as a young adult. Even so, based on your consumer habits, they all could have a positive or a negative effect on your credit score. Learning about credit earlier on will help you avoid setbacks later.

Keep An Eye On Your Credit History And Score

Now that you know the fundamentals of how to build credit, you should begin tracking your credit rating and credit history.

Checking your credit is among the most effective methods for determining what will affect your score in a positive or negative way. It also allows you to detect inconsistencies or indications of fraudulent activity earlier in time.

Every main credit bureau provides a no-cost yearly credit score review. Examine yours for any bad or incorrect reporting that may be harming your score. You could also see your credit rating for free at, which is refreshed fortnightly.

Register For Extracredit

ExtraCredit not only displays credit scores, but it also helps you with building your score by adding any payments you are already making toward bills to Experian, TransUnion, and Equifax.

Be A Registered User

You can build your credit by piggybacking on the bank account activity of a relative or a friend who is happy to add you as an authorized user on their card.

It does not matter if you are actually using their card or not, the account can appear on your credit file and improve the score.

The main account holder and you, the approved user, are both at risk of using this tactic. If you or the main account holder hold excessive debt or fail to pay bills on time, your credit may suffer as a result of this.

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It may thus be beneficial to confirm that the credit card provider in question documents card activities to the credit reports of both. When they do not, your credit will suffer.

Apply For A Starter Credit Card

Credit cards are among the most effective ways to establish credit, but you could find it difficult to qualify for one if you’ve got no credit record.

Fortunately, for young adults who have inadequate or no credit, there are two credit card alternatives. These are:

Unsecured Credit Cards

If you lack the funds to place a security deposit, we recommend an unsecured credit card. Before applying for such a card, you will be given a credit line depending on your credit standing.

There are also no penalties or hidden charges, making it ideal for anyone turning 18 to get their first credit card. To be authorized, you must have at least an acceptable credit record.

Secured Credit Cards

To get these cards, you must first pay a security deposit. Generally, your deposit will be the same as your first available credit. A $200 security deposit, for instance, would result in $500 in available credit.

This type of credit card is simpler to obtain, and you can use it to purchase things in the same way that you would with conventional credit cards, but you will also be building a credit score at the same time.

Be Punctual With Your Bills

Payment history accounts for 35% of your credit rating, so trying to be on time with paying your bills is the key to building credit.

This includes credit cards, loan repayments, utility costs like telephone services, and even your gym subscription.

A delayed or missed payout on your credit history, regardless of the type of account, can have a considerable negative impact on your credit score.

Keep Your Credit Card Balance Minimal

A further important factor in your credit score is your credit utilization percentage or the quantity of free credit you have connected to debts.

Many professionals recommend having a credit card balance under 30% of the available credit cap. To prevent unnecessary interest and maintain your usage to a minimum, you are expected to be paid off your entire balance on a monthly basis.

Apply For A Loan

Taking out a loan to build your credit score is typically a bad idea since you shouldn’t accumulate debt solely to improve it.

However, when you have a reasonable justification, like, for example, the need for a vehicle or university funds, a small loan can assist you in building credit provided that you are punctual with your repayments.


When you turn 18, it is easy to build credit as you are only entering your adult life and start paying for your own bills. Therefore, if you follow the advice in this article, you can easily do it!

Andre Flowers
Andre Flowers

Hello, my name is Andre Flowers and I have been a Licensed Real Estate Professional for over 24 years. I also carry several certifications, including: Certified Distressed Property Expert, Certified Global Business Professional, Certified Credit Repair Specialist.

As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.

Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.

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