Building Your Credit from Scratch

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Sometimes, it can seem like the whole world has money and is simply obsessed with asset management, meaning what to do with the money they have. Of course, not everyone is at that stage in life. If you’re at a point where you don’t have much or any credit to your name, just getting established financially can feel impossible, but it’s really not.

To get started, check out your credit report. Do this even if you think you have no credit to speak of. Oftentimes, credit reports can contain errors, particularly if you have a parent or other family member with the same or a similar name. Clear up any discrepancies on your credit report and just be aware of where you stand. If you have no credit at all, don’t panic. That just means you have a blank slate to work with, and there’s nothing wrong with that.

If you find yourself in a “no credit” situation, try opening a bank account, preferably a checking and a savings account. Having these accounts in good standing, even if you don’t have a lot to put into them, can help you to start building your credit.

Also, take advantage of any bills you accumulate. Though they may seem like a pain, paying them on time is a step in the right direction when it comes to credit. Credit does have to be built slowly, but if you’re patient and smart about the process, you can make a good name for yourself in the credit world.

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• How to Make Your Good Credit Score Even Better (credit.com)