How to Build Credit for Beginners

How to Build Credit for Beginners

Credit cards and personal loans are often things our parents warned us to stay away from. Stories of falling deep into debt scare people away from such things. What they do not tell you is that you need credit to buy a car or house someday. Without a strong credit score, you may not be able to or might have to have someone cosign with you. There are a variety of ways you can build credit. However, if you are struggling with bankruptcy, talk to a Tennessee bankruptcy attorney about your options.


There are three easy ways to build credit that involve a few simple steps. Whether you want to build credit to buy a house someday or if you want to rebuild your credit score, these can help. The first easy way to build credit is to ask your bank for a secured credit card. Unlike other credit cards, a secured credit card involves putting your own money into another bank account.

While this may sound redundant, what this does is ensure you have the money to pay what you spend on that credit card while building credit. In some instances, you will be able to transform your secured credit card into a credit card once you build enough credit. You can do something similar by buying a retail credit card from a store.

Credit builder loans involve you asking the bank for a small loan ranging from $300 to $1000 that you make monthly payments on. As long as you make each monthly payment on time, your credit score will go up. The only catch is you do not receive this money right away. After you finish paying this loan off, you will receive the total money back.

You can try building credit with a regular credit card but be careful. One of the best credit card tips is to always pay off the money you spent on your credit card by the end of each month. This lets you avoid paying interest.


There are more credit-building mistakes than credit-building itself. Mistake number one is missing a monthly payment. This will destroy your credit score. You can actually build your credit score faster by making extra payments ever so often or by paying off everything in one or two months.

Avoid the mistake of accepting the first loan or credit card offers you hear. Make sure you can afford the interest rate and stay away from variable interest rates. The lower you can make your interest rate when starting out, the better chances you have of not falling into bad credit.


Credit card debt can lead some people to bankruptcy. The great fear of bankruptcy is how this destroys your credit score. Feel free to contact us at Tom Bible Law by dialing (423) 690-7712 for a consultation about your financial situation. Our experienced legal team of Tennessee bankruptcy lawyers can help you explore bankruptcy options and how each could impact your credit score. You can find us in your local Tennessee cities of Chattanooga and Tullahoma.

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