No Credit History? Here's Exactly How to Build It Fast
Bottom line
Without a credit score, landlords, lenders, and even some employers will turn you away flat.
In this guide
What it is
Your credit score is a three digit number (ranging from 300 to 850) that tells lenders how likely you are to pay back money you borrow. No score at all is treated almost as badly as a low one.
By the numbers
With no credit history, a landlord requiring a 670 minimum score will reject your application for a $1,200/month apartment. even if you have $10,000 in savings and pay every bill on time.
How it works
Credit bureaus (the three companies that track your borrowing history) can only generate a score if you have at least one account that has been open for six months and reported to them. Open a credit account, use it lightly, pay on time, and a scoreable history starts building automatically.
The catch
Paying your rent, phone bill, and utilities on time does nothing for your credit score by default. Those payments are not reported to credit bureaus unless you specifically sign up for a service that adds them. Most people assume being responsible with bills builds credit. it does not unless you take an extra step.
What to check next
Open a secured credit card (where you deposit $200 $500 as collateral), charge one small purchase monthly, and pay the full balance each month.
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