Building US credit from scratch: first products, good habits and free credit reports
Landlords, phone carriers and lenders often check your credit history, and newcomers start with none. This checklist follows the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). We do not recommend specific cards and this is not financial advice.
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Pick a product that builds credit
- Start by asking your bank, a credit union or a nonprofit credit counseling agency;
- secured credit card: you deposit cash (for example $500) and can spend up to that amount; confirm the issuer reports to the three credit bureaus;
- credit builder loan: the money is held in savings while you make small payments over 6–24 months, then you receive it;
- store or gas-station cards: usually low limits and easier approval;
- these usually do not build credit: debit cards, cash, prepaid cards, payday loans and “buy here, pay here” car loans.
Official sources: CFPB: Ways to start or rebuild a good credit history; CFPB: Building credit from scratch (PDF)
Last reviewed 2026-11-01 -
Use it well
- Pay on time, every time;
- keep balances well below the limit; experts cited by the CFPB suggest using no more than 30% of your available credit;
- do not open many accounts in a short time; it can lower your score.
Official sources: CFPB: Building credit from scratch (PDF)
Last reviewed 2026-11-01 -
Check your credit reports free
- Equifax, Experian and TransUnion each let you check your report free every week at AnnualCreditReport.com, the only site authorized by federal law; phone 1-877-322-8228;
- you provide your name, address, SSN and date of birth and answer identity questions; online reports are available immediately, phone or mail requests arrive within 15 days;
- reports from the three bureaus can differ, so check all three and dispute errors with the bureau and the company that supplied the information;
- checking your own report does not lower your score.
Official sources: FTC: Free Credit Reports; CFPB: How do I get a free copy of my credit reports?
Last reviewed 2026-11-01 -
Avoid look-alike sites and scams
- Many sites imitate AnnualCreditReport.com or advertise “free reports” that lead to paid subscriptions; type the address yourself;
- AnnualCreditReport.com and the bureaus will not email you asking for your SSN or account numbers; ignore such emails, pop-ups and calls.
Official sources: FTC: Free Credit Reports
Last reviewed 2026-11-01
FAQFrequently asked questions
QDoes a debit card build credit?
No. Debit cards, cash, prepaid cards and payday loans are generally not reported to the credit bureaus. A secured credit card or a credit builder loan can build credit.
QWhat is a secured credit card?
You put down a cash deposit and your credit limit is usually equal to it. Before applying, confirm the issuer reports your payments to the three nationwide credit bureaus.
QHow much of my credit limit should I use?
Keep balances low. Experts cited by the CFPB suggest using no more than 30% of your available credit, and paying on time every month.
QWhere can I check my credit report for free?
At AnnualCreditReport.com or 1-877-322-8228, the only source authorized by federal law. You can get each of the three bureau reports free once a week.
Disclaimer: This is general information compiled from public official sources. It is not legal, immigration, tax or insurance advice and does not cover any individual case. Rules and fees change; the linked official pages are what count. Some links on this site may be affiliate links; see our affiliate disclosure.