When you are ready to take on the world and open up a credit account, you may find yourself in a position where you are unable to do so. Why? Maybe it is due to your lack of credit history. It probably sounds a bit counterintuitive, you need a credit history to have a credit account open but you can’t get a credit account unless you have a credit history, confusing right?

So you’re probably hitting your head against the wall asking yourself how you get this whole process started if no one will even allow you to get a credit account from them.

Well, we are here to explain how you can build your credit from ground zero.

But before we start, remember that everyone started out with no credit at all. So just know that it can be done.

We’re going to take a look at some of the strategies that you should know to get the ball rolling to build the credit score you want to hit those financial milestones in life.

Become an Authorized User on Someone’s Card. This is probably the quickest way you can be approved and be able to build your credit score over time. If you are new to the concept of credit, companies may be hesitant and not approve you for any types of credit. Sao opening a joint account with somebody who has a good credit history is one quick way to get approved for a credit card and build your credit safely. Usually, younger kids may have trouble getting approved for credit simply because of their age and they don’t have sufficient funds to repay debt. This is usually where parents come in or another family member and by doing so they’ll add them to their existing account. They do this usually in one of two ways, allowing them to be an authorized user under an existing credit card account or opening a joint account with them and opening a credit card as well.

There are both pros and cons to this, the pro being if you cannot make the payments on time the other person on the account can do so and in the long run it’ll save you and help build your credit score. Although if both parties are unable to make the payments on the credit card you may be penalized for late payments.

Getting a Secured Credit Card. Building your credit score from scratch is a lengthy process. Sometimes companies may not want to give you a credit account simply because of your lack of credit history. So getting a secured credit card is one of the best ways to do so.

A secured credit card is essentially the same thing as a regular credit card, you buy things make payments on them just before your due date. It’s a good way to get yourself started to build a credit score. Although the only difference between a secured credit card and a regular credit card is the fact that a secured credit card is backed by a cash deposit. The cash deposit is used as collateral for the card, it is usually tied an existing account such as a saving account or chequing account. Just in case you aren’t able to make payments they will take from your account to fulfill the payments.

Get a Co-signer. Co-signing can be a tricky situation, but it is possible for you to get a loan if you have a co-signer. A co-signer will be needed regardless of the loan are taking a secured or unsecured. You can use this for pretty much any type of loan, but the co-signer must know that they’re responsible for the full amount of the loan in case you default on the payments.

Building Credit without a Credit Card

The options above are many ways you can build a credit score, but that doesn’t mean there isn’t an option to build a credit score without even a credit card. So we’re going to give you a few ways were you could go to your credit score without having a credit card.

Mortgages. If you’re lucky enough to be approved for a mortgage, this is one way you can build your credit on time. You just have to make your payments on time and you’ll be good. Just make sure you have the credit score for a mortgage.

Auto loans. If you’re purchasing a car oh, this is one other way you can build your credit card fairly quickly. By making a solid down payment towards your vehicle and pay the monthly installments on time will build your credit score. This is a for sure way younger people or people with bad credit can build a credit score or repair their credit score. Just always remember if you’re looking to purchase vehicle cash, it’s a great way to save yourself for monthly payments but not necessarily help your credit score.

Home Services. Home Services it’s a quick way you can build your credit score as well. If you have a credit card TV or even internet bills you can ask your service providers to report your good payment history to credit bureaus to reflect on your credit score.


Rent. This is another way you can make a strong impact on your credit score. As long as you pay your rent on time you should ask your landlord to report good behavior of on-time payments to the credit bureau so it’ll be reflected on your credit report

Building your credit is a slow and steady process which requires seamless execution. Don’t stress out if you don’t have a credit score yet, just look at it as you could be in a better position today that many people who have a worse credit score. Building a credit score from scratch vs. repairing your credit score is a lot easier than you think. So make the proper plan of how you’ll be making your on-time payments and don’t overspend. Understand what goes into your credit score and how each factor affects your overall standing. Pay attention to how your habits reflect that. So definitely take this opportunity to stress yourself and build good habits and get your credit history off right.