Building your credit history now, the right way, ensures you’ll be able to qualify for various types of credit in the future. To establish good credit, always pay your bills on time, keep your balances low, and try not to apply for too much credit at one time. Here are a few ways to immediately start building your credit history.
- Open a savings and/or checking account.
After you have maintained a checking or savings account for at least six months, apply for a credit card.
- Apply for an Navy Federal credit card.
But remember, each time you apply for credit, it will be reported to the credit bureaus as an inquiry—too many inquiries about your credit record in a short amount of time will make potential lenders cautious.
- Take out a small loan.
If you can’t get a personal loan (no collateral is needed, just your signature), ask for a savings-secured loan (the money in your savings account is frozen while you are borrowing their money), or apply for a secured loan (a paid-for possession like a car is used for collateral). If you aren’t able to qualify for a loan on your own, ask a relative or friend to cosign a loan with you.