Turning 18 is a big deal. It’s a milestone into adulthood, not just from the emotional perspective, but legal as well. You can vote, join the military, become an organ donor, get married, work full-time, among a host of other things.

You can also apply for checking accounts and loans and establish your creditworthiness. Most 18-year-olds are credit invisible, which means they don’t have an established credit history present with any of the top credit bureaus.

Having a clean slate provides the perfect opportunity to build a strong credit history. From car financing to renting an apartment, it will help you in every financial decision you make in your life.

Here are three simple ways you can choose to start building your credit score:

Authorized user on someone else’s account

The easiest way to improve your credit score is by becoming an authorized user on account of your trusted family member or friend. As a result, you will be able to take advantage of their credit history. This is important because you don’t have a lengthy credit history of your own.

That being said, it’s critical that you choose a person who’s financially responsible and make timely payments on their accounts. Also, you must confirm that the card provider reports authorized user activity to all three credit bureaus to ensure your efforts are not wasted.

Credit builder loan

If you’re unable to find a financially responsible person, apply for a credit builder loan from a bank. Remember that you will only be able to have access to that money once the term of the loan reaches its completion.

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You can put the money in a savings account to balance out interest payments. However, you need to submit proof of income to show that you can afford to make repayments; make sure the amount you borrow is reasonable.

You can use this method not only to build your credit, but also to get savings, which you can use to fund your education expense or perhaps start off your entrepreneurial journey.

Secured credit card

A secured credit card works like conventional ones, except that you have to pay upfront payment as a deposit, which becomes your credit limit. It’s simple to obtain as card providers can simply take out money from the deposit if you default on your monthly payments.

To establish good credit ratings, it’s important that you keep up with your monthly payments. Once you join the 600 club, you can simply apply for a regular credit card.

Do you live in Charlotte and looking to establish a solid credit rating? Get in touch with Masters Credit Consultants today! Based in Spartanburg, SC, we’re a consulting firm that offers reliable credit repair and restoration services. 

To find out more, call us at 1-844-620-8796 or drop us an email at info@masterscredit.com.