Great Advice for Grads 2020

Smart Ways to Establish Credit in 2020


Dipping your toe into the world of credit? You’re in luck: There are more ways to establish credit now than there were in decades past. You build your credit score by adding positive information to your credit reports, which are files of financial data about you. These files are compiled by the three major credit bureaus, Experian, Equifax and TransUnion. Lenders, landlords and employers may check one or more of those files while reviewing your application. Here are three well-known ways to establish credit, plus some new products designed to give you a leg up.


These three approaches can quickly build your credit. AUTHORIZED USER: Ask someone with good credit habits to add you as a user on their credit card. They don’t have to let you use the card; just being added to the account is enough. PRO: You can benefit from their credit history. CON: Not all card issuers report SECURED CREDIT CARD: These cards are relatively easy to qualify for because they require an upfront deposit. PRO: Payments are usually reported to all bureaus. CON: Your credit limit is typically small. authorized user activity to the bureaus, so check that first. CREDIT-BUILDER LOAN: These help you improve your credit and save at the same time. PRO: Payments are usually reported to all bureaus. CON: Your cannot access funds until you’ve paid back the loan.



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