How credit works and how to build it

How to Get Credit explains how credit works and how people build it over time, for general education only.

Your credit reports are the record lenders look at. You can get your reports from the three nationwide credit bureaus for free at AnnualCreditReport.com, and reading them is the place to start.

If something on a report is wrong, you can dispute it directly with the credit bureau that reports it. Filing a dispute yourself costs nothing.

Credit is built with time and steady habits. Paying every bill on time and keeping card balances low compared with your limits both count heavily in common scoring models.

With little or no credit history, getting started is the hard part. Some lenders offer secured cards and credit-builder loans for this, and their terms vary, so read them closely or talk with a qualified financial counselor before you sign.

Guides on credit reports, scores and first accounts are on the way.