How to Build a Credit Score at 18?

Credit Card
1

I am 18 years old. Please suggest how should I build my credit score?

2

Do you know that the majority of banks issue credit cards to applicants with a credit score of 750 or above? However, building this credit score over time since early adulthood is essential. Here are the ways you can build your credit score:

  • You can apply for a student credit card to start your credit score-building journey.
  • Ensure you pay the student credit card bill within the due date.
  • Avoid paying only the minimum due amount on your student credit card.
  • Ensure you keep your credit utilisation ratio low. For instance, using up to 30% of your credit card limit indicates a low utilisation ratio.
  • Avoid applying for multiple credit cards at the same time.
  • You can become an authorised or add-on member on your parents’ credit card.

Your credit card transactions and repayment determine the credit score you build for the future. At 18, you can use your student credit card responsibly to build a good credit score and a credit history.