1. Pay Your Bills on Time

When it comes to paying your bills, meeting deadlines is one of the most important habits you can build. At its core, having good credit shows that you’re responsible with money and understand the importance of paying your debts on time. Above all else, make it a priority to pay your bills by their due dates. This single step is one of the strongest ways to protect and grow your credit.

2. Stay Organized

Staying on top of important dates and deadlines is one of the simplest, and most essential, ways to maintain good credit. Since a large portion of your credit score is based on timely payments, keeping an organized system can make all the difference. Use a calendar or planner to note each due date and check off payments as you make them.

If you prefer digital tools, set reminders on your phone, or take it a step further by enrolling in automatic bill pay. With this option, your bank will automatically send payments to your credit cards or other lenders on their due dates, ensuring you never miss a payment. For anyone who struggles to remember deadlines, automatic payments can be a reliable safeguard against late fees and credit score damage.

3. Apply For a Credit Card

One of the most effective ways to start building credit is by applying for a credit card or a secured credit card if you’re just getting started. Once approved, use your card for everyday purchases like gas and groceries, then be sure to make at least the minimum payment on time, every time. Consistent, on-time payments are one of the biggest factors in establishing a solid credit history, while missed or late payments can hurt your score right from the start.

Launch CU makes it easy to begin building credit with our credit card featuring a low introductory rate – an excellent option for anyone ready to take the first step toward a stronger financial future.

4. Apply For A Small Personal Loan

A personal loan can also be an excellent tool for building your credit portfolio, especially if you prefer to avoid using credit cards. For those starting from scratch, a savings secured loan is a smart option. With this type of loan, you borrow against the funds already in your savings account. Your money remains safely in your account, continuing to earn dividends, while you make payments on the loan. This means you can start building credit without dipping into your emergency savings or losing out on future earnings.

Launch CU makes it easy with our Savings Secured Loan, which lets you borrow up to 100% of your savings account balance. Apply online today and take the next step toward stronger credit.

5. Reduce the Number of Credit Cards You Apply For

In the world of credit, charging fifty dollars to one card and fifty dollars to another is considered worse than charging one hundred dollars on one card. This is because your credit factors in the amount of cards in your possession that have balances on them.

Additionally, opening several new credit accounts at once can shorten your average credit history and may temporarily lower your credit score, as each application typically triggers a credit inquiry.

A simple rule of thumb for building good credit: keep balances low and pay off your cards as quickly as possible. This demonstrates responsible credit management and helps strengthen your credit profile over time.

6. Pay Attention to Your Card Payment

It’s important to keep track of your credit card balances. The lower your balances and the faster you pay them off, the stronger your credit profile becomes. Credit agencies generally favor frequent, smaller payments over infrequent, larger ones, as consistent activity demonstrates responsible credit management.

7. Become an Authorized User

One way to start building credit without taking out a loan is to become an authorized user on a friend or family member’s credit card. An authorized user means you have someone else’s card in your name. This does not make you the primary owner, however you can still make purchases with it. We recommend finding a trustworthy family member whom you can depend on to make his or her payments on time. If they fail to do so, your credit will also be lowered. Essentially, anything good or bad the owner of the credit card does will affect the authorized user.