Even if you’ve never taken out a loan or made a major credit card purchase, there are several ways to start establishing your credit history:
Open a checking or savings account. While they won’t create credit, their existence will indicate that you have money and show how you manage it to lenders and creditors.
Apply for a department store credit card or a major credit card (such as a MasterCard®, Visa®, or Discover®) and use it responsibly. Pay your bills on time!
Apply for a small loan or line of credit from your local bank. To get a loan without a cosigner-signer, you must be at least 18 years old and have a steady source of income. To increase your chances of getting the loan, come up with a large down payment.
If you don’t qualify for credit on the basis of your credit file, ask someone with an established credit history (like a parent) to cosign your application. Remember, the cosigner promises to pay your debts if you don’t.
Remember, in order to establish a good credit history, it is important to always pay your bills on time and never borrow or spend more than you can afford.