How to Build Your Credit Score From Scratch

A good credit score can open doors in the financial world, but how do you build a good one? In this post, I will share how to build your credit score from scratch. 

Building a credit score can be a slow process. When you are faced with the task of building it from scratch, it can seem to take a long time.

Have patience, and use these tips to help you start well. In no time, you will find that you have diverse options to equip yourself with.

How to Build Your Credit Score From Scratch

Here are the five steps you need to follow to build your credit score from scratch.

Find a stable source of income.

An old cliche states that banks will give you a loan or credit card only if you have money, which is still true today.

If you want to build a good credit score, you need to have a stable source of income. This can be starting a business or getting a job.

For most people, getting a job that pays you a steady salary is the easiest and the best option. 

Secure a job that you can envision yourself at for many years. Stability in a job always looks good as far as credit is concerned.

If you have been working at the same place for many years with a steady incline regarding your paycheck, you will come across as a stable individual who can make regular payments.

Obtain a Bank Account.

After having a steady source of income, now you need to open a bank account. Obtaining a bank account should also be at the top of your “to-do” list.

Any bank account is fine. The point is to open one and maintain activity.

This will prove that you can keep a bank account running, along with its transactions and deposits.

Obtain a Credit Card.

If you do not yet have one, obtaining a credit card is a goal you should make. This is essential to make your dreams of building your credit come true.

There are many options when you are searching for credit cards. Be sure to do your research and find the credit card that is the right fit for you.

If you have a bad credit score or do not have any, I recommend getting a secured credit card

A secured credit card is a card that requires a cash security deposit when you open the account.

The deposit reduces the risk to the credit card issuer: If you don’t pay your bill, the issuer can take the money from your deposit. These cards are available to people with bad or no credit.

After six months of good use of your secured credit card, you should have a better credit score and are now ready to get an unsecured credit card.

There are many types of credit cards, from high interest with no fees to those with low interest for individuals who tend to carry a balance to credit cards with a reward point system.

There is no “one size fits all” in credit cards, so research your options and ask friends and family what they love and hate about their credit cards.

Pay Your Credit Card on Time.

Having a credit card does not mean you have an extra source of income. Credit cards are short-time loans, and make sure you use them correctly.

Once you have your credit card, make it a priority to pay it on time monthly.

It was believed that you should keep a balance on your credit card to build credit, but that has now proven false.

A better way to build your credit is to pay on time and in full if possible. This will show that you are trustworthy and can make regular payments on time.

Live within Your Means.

Again, having a credit card does not mean you make more money; you are just using it as a means of payment to build your score. Do not start buying things you do not need just because you have a higher line of credit.

One of the best advice to someone who wants to build credit is to live within your means and not overspend.

It won’t do your credit any good to have a job, bank account, and credit card if you are constantly in debt and not paying it off in time. Instead, live frugally and stick within your budget.


That is it; that is how to build your credit score from scratch. Building a credit score from scratch does not have to be difficult. It simply takes a bit of planning and lots of patience.

By using these steps, you can easily build a credit score from scratch and be one step closer to the dreams you have for your future.