The first time you get a credit card or take out a loan, your credit history begins. Your credit history is what potential creditors and lenders use to determine if you can manage money responsibly. If you've never had credit, you are referred to as credit invisible, meaning you don’t have a credit history.
Don't panic if you are credit invisible — there are strategies you can apply to go from "invisible" to "visible" and start building a credit history. By establishing a credit history with a positive pattern of payments over time, you can become a good candidate for a loan, banking product, and other products and services.
Here are just a few of the steps you can take to build a good credit history.
1. Report Your Rent Payment
Your on-time rent payments can be used to build credit with all three major credit bureaus.
Your landlord may already be automatically reporting to credit bureaus, but not all landlords do. Ask if your landlord is reporting your payments and if not, find out if they can.