How to get started on credit score

[Ana427]

I have no credit cards and no loans at the moment, part time working a close to minimum paying job, and wanting to start working on my credit. Any recommendations on how I can start? I'm not well educated on how it works, so information on that would be nice as well. 

[JBJ · Accepted solution]

1. Credit scores are daunting! Totally okay to head scratch with no idea of how to start. 

2. One simple step is outlined in this NerdWallet article: 

https://www.nerdwallet.com/blog/credit-cards/secured-credit-cards-vs-unsecured-difference/

Specifically from the article, "A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $200, you’ll have a $200 limit...  Once the initial deposit is paid, secured cards work just like unsecured ones:

• You can use them wherever credit cards are accepted, including online
• You can build or rebuild your credit by using the card responsibly and paying your balance on time
• You incur interest if you carry a balance"

Now, I'm not sure what the minimum balance you can place on a card, and I'm cognizant of money being tight (been there - seriously, nothing is forever beyond, well, that one thing!)... but if $50 is all you've got, and you can place it on a card, start there. It's a good way to begin slowly establishing a credit score.  

Remember Rome, and a great credit score, weren't built overnight... but they were both ultimately built. You can do it! 

[jlohani · Accepted solution]

Ah, @JBJ , my heart! Nerdwallet? 🙂  I'm kidding... kinda.

@Ana427 - JBJ is right on IMO

We have a great article on Secured Cards on the Mint blog as well if you're looking to do more research on it!  https://blog.mint.com/credit/rebuilding-your-credit-score-a-guide-to-secured-credit-cards/

[Ana427]

Thank you @JBJ and @jlohani ! I appreciate it.