Once you learn how to use a credit card to build credit, you'll be surprised by how quickly you can earn a good credit score.
If you don't have any credit, you might think it's almost impossible to get a credit card, let alone use one to build credit.
You probably won't get your top-choice card, but you just have to aim for the right ones. And once you have a credit card, you'll find that it's one of the best ways to build credit.
Now, I'm not talking about a fancy credit card that lets you into multiple airport lounges because it gives you points. No, even if your card has rewards, you won't be sipping free cocktails in a suite.
The truth is that it doesn't matter. Your first credit card helps you build your credit history. Focus on that for now. You can put the fancy cards in your wallet later.
But what if you don't feel ready to get your own credit card yet? You might be new to it all and want to find out how things work first. You can get started by using someone else's credit as your own.
If you have a parent, relative, or close friend with good credit, you might be able to become an authorized user. This is called "piggybacking" because you can build your credit history as an authorized user without having to get your own card.
This plan works as long as you and the account owner talk in detail about what you can buy with the card and how much you can spend. If you buy too many things with the card, the credit of the person who owns the account will go down. Stop that from happening. You have a great chance to build your credit, so keep track of how much you spend and use the card wisely.
If you don't have any credit, you might think it's almost impossible to get a credit card, let alone use one to build credit.
You probably won't get your top-choice card, but you just have to aim for the right ones. And once you have a credit card, you'll find that it's one of the best ways to build credit.
Now, I'm not talking about a fancy credit card that lets you into multiple airport lounges because it gives you points. No, even if your card has rewards, you won't be sipping free cocktails in a suite.
The truth is that it doesn't matter. Your first credit card helps you build your credit history. Focus on that for now. You can put the fancy cards in your wallet later.
But what if you don't feel ready to get your own credit card yet? You might be new to it all and want to find out how things work first. You can get started by using someone else's credit as your own.
If you have a parent, relative, or close friend with good credit, you might be able to become an authorized user. This is called "piggybacking" because you can build your credit history as an authorized user without having to get your own card.
This plan works as long as you and the account owner talk in detail about what you can buy with the card and how much you can spend. If you buy too many things with the card, the credit of the person who owns the account will go down. Stop that from happening. You have a great chance to build your credit, so keep track of how much you spend and use the card wisely.