How to Build Credit in the USA

You can easily establish credit in the United States. Credit cards are among the easiest ways to get started, and they are available from a number of banks and other lending institutions. Depending on your credit background, employment and income, the initial credit line could range from a few hundred dollars to more than $10,000. Opening a credit card account and establishing a positive payment history can lead to other forms of credit, such as signature loans, auto loans and mortgages.

Instructions

1

Fill out an application for a credit card. You can find numerous credit card offers online or compare offers at creditcards.com.

2

Consider a secured credit card if your request is denied because you lack a credit history or for some other reason. Check sites like creditcards.com for secured cards or type the phrase into an Internet search. With a secured card, you'll be required to place cash in a bank account, and generally your credit line will be 50-100 percent of that amount. The deposit will be held as collateral while you use the card, so the acceptance rate on these types of cards is extremely high.

3

Establish a positive payment history with your new credit card. After a few months, open a second credit card account, and establish a good payment history with it as well.

4

Branch out several months later by opening other types of credit card accounts, such as gas cards and department store cards, and be sure to maintain an outstanding payment history.

5

Stay well below the credit line on the cards. This will indicate responsible financial management and potentially boost your credit scores.

6

Monitor your credit scores by pulling your credit reports annually. The federal Fair Credit Reporting Act requires that U.S. consumers be entitled to a free credit report each year from all three major credit bureaus: Equifax, Trans Union and Experian. Don't apply excessively for credit because this could cause your score to drop. Use the credit cards you've received to grow your scores, and add new credit lines as warranted.