If you’re just starting out, you might find credit confusing. You haven’t borrowed money before, so you have no credit history. That can make it hard to get approved for loans, credit cards, or even rent.

But here’s the good news: you can build credit from scratch. And it’s easier than you might think.

In this guide, you’ll learn exactly how to start building credit, even if you’ve never used it before. These practical credit tips will help you set a strong foundation for your financial future.

What Is Credit History?

Your credit history is a record of how you’ve used credit in the past. It includes:

  • Credit cards
  • Loans (like car finance or student loans)
  • Payment history
  • Account balances
  • Credit limits

Lenders use this history to decide if they should lend to you — and at what rate. No history means they don’t know what to expect, so they may see you as a risk.

Why It’s Important to Build Credit Early

A person holds a credit card, looking at a computer screen displaying an LOAN APPROVED message above an application form. Floral arrangement nearby.

A strong credit history can help you:

  • Get approved for loans and credit cards
  • Secure lower interest rates
  • Rent a flat or sign up for utilities
  • Qualify for a mortgage
  • Save money over time

The earlier you start, the better. Lenders like to see long-standing accounts and a proven record of smart borrowing.

Learn more in Credit Builder Loans: What You Need to Know.

Start Building Credit with No History

Let’s look at real steps you can take today to build credit from the ground up.

1. Open a Secured Credit Card

A secured card is designed for people with no credit history. You pay a deposit (usually equal to your credit limit), and use the card just like a normal one.

  • Use it for small purchases
  • Pay the balance in full each month
  • Keep the balance below 30% of the limit

Over time, your activity is reported to the credit bureaus — and your credit starts to grow.

2. Become an Authorised User

Ask a family member or close friend with good credit to add you to their card. You don’t need to use the card — just being listed can help.

  • Their payment history shows up on your credit report
  • You get a head start on building a positive record
  • Make sure they pay their bills on time — it affects your score too

Not every card offers this feature, so check with the bank first.

3. Apply for a Credit-Builder Loan

Some credit unions or online lenders offer small loans meant to build credit.

  • You don’t get the money up front
  • Instead, you make monthly payments into a savings account
  • Once it’s paid off, you get the money, and your payment history is reported

This option is great if you want to build savings and credit at the same time.

4. Use Rent and Utility Reporting Services

Usually, paying rent or bills doesn’t help your credit. But with the right services, it can.

  • Tools like Experian Boost or CreditLadder (UK) let you report on-time payments
  • Some landlords work with these services too
  • This turns everyday spending into credit-building opportunities

Make sure the service reports to all major bureaus for the best results.

5. Set Up Automatic Payments

Missed payments hurt your score — even one can stay on your report for years.

If you’re forgetful, set up auto-pay for:

  • Credit cards
  • Loans
  • Bills reported to credit agencies

This simple habit keeps your score safe and shows lenders you’re reliable.

6. Use Only What You Need

When you start using credit, it’s tempting to spend more. But keeping your balance low is key.

  • Try to use less than 30% of your credit limit
  • The lower, the better — ideally under 10%
  • Pay off your card in full every month to avoid interest

7. Check Your Credit Report

A person holding a credit card while filling out an online credit check form on a laptop, with a wooden table in the background.

Once you start building credit, you can track your progress.

In the UK, check your report with:

  • ClearScore (Equifax)
  • Credit Karma (TransUnion)
  • Experian

In the US, use:

  • AnnualCreditReport.com
  • Credit Karma
  • Credit Sesame

Look for errors, check your score, and make sure your payments are showing up.

Common Credit Mistakes to Avoid

Starting fresh is exciting — but avoid these traps:

Applying for Too Many Cards

Each application creates a hard check, which can lower your score.

Missing a Payment

Late payments can stay on your report for six years.

Maxing Out Your Card

High balances make you look risky. Keep it under 30% of the limit.

Ignoring Your Score

Check your report regularly. Look for fraud, errors, or areas to improve.

How Long Does It Take to Build Credit?

You’ll start seeing results in as little as three to six months. But real progress takes time.

Here’s a basic timeline:

  • 0–3 months: Open your first account
  • 3–6 months: Start getting a score
  • 6–12 months: Build a history of on-time payments
  • 1–2 years: Qualify for better cards or small loans
  • 3+ years: Enjoy stronger credit, better rates, and more financial freedom

What Lenders Look For

Even with no credit history, lenders look for signs you’re ready:

  • Steady income
  • Low debt-to-income ratio
  • On-time payment history (even with rent or phone bills)
  • Responsible use of small credit lines

The more you show, the better your chances of approval.

Tools and Apps That Can Help

Here are some beginner-friendly tools to help you stay on track:

Credit Karma

Track your score and get tips — free in the US and UK

Experian App

Includes score tracking, tips, and Experian Boost to report bills

ClearScore

Weekly score updates and personalised credit insights (UK)

Emma or Money Dashboard

Helps you manage your budget, which supports better credit use

Kikoff or Self (US)

Credit-builder products for people starting from zero

Build Credit One Step at a Time

Starting with no credit history can feel like a challenge, but it’s also a great opportunity. You get to build smart habits from day one, avoid mistakes, and create a strong financial foundation.

Use these simple credit to take control. Start small. Stay consistent. And watch your credit grow.