Building credit from scratch (or scratch again)

Thin file or damaged credit starter kit

No credit history or a major hit? You rebuild from the foundation. Specific tools can get you to a 700+ score in 12 to 18 months.

Stack multiple credit-building accounts so you cover payment history, utilization, and mix at the same time. One account alone is too slow.

Here's what works, in order.

Steps

1. Secured card. Refundable deposit ($200 to $500) becomes your limit. Reports to all three bureaus. Pick one that graduates to unsecured after 6 to 12 months of on-time payments.

2. Credit-builder loan. Small amount ($500 to $1,000) held in savings while you make monthly payments. You get the money back at the end. Reports as installment, adding credit mix.

3. Authorized user. Ask a family member with great credit to add you to one of their oldest, lowest-utilization cards. Their age and history flow to your report.

4. Rent reporting service. Pay rent on time? A reporting service adds that history to your report. Some include the last 24 months retroactively for instant age.

5. Second secured card at month 6. After 6 months of perfect payments, open a second. More credit = lower utilization. Two beats one for score-building.

6. First unsecured card at month 12. Apply for an unsecured starter card. Capital One Platinum and Discover It Secured are common graduation paths. Score accelerates here.