Asked by Tracy  |  Submitted January 12, 2016

I would like to work on my credit score. Is it true that no credit history is worse than having bad credit? If so, how do I approach fixing my credit?

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  2

January 21, 2016

Having no credit is often harder to work with than having bruised credit, but BAD credit takes real work to fix. : )

Making a ton of assumptions since I don't know you:
If you really have no credit behind you, yes, you really want to get some history. The best way is to apply for A (or no more than 2) major credit card. Not a store charge, but a Mastercard/Visa/Discover. If you have no history at all, odds are you'll need to start with a secured credit card (Google that), where you give the bank a lump sum ($300 is a common one) and they give you a credit card with a $300 limit. Low risk for them - they have an account with your money in it already. But that money is still yours, so if they upgrade you, or you close the account, you'd get it back. It isn't a fee - just collateral.

Get a card, and right away, use it to buy something you would anyway. A tank of gas, a $5 footlong, or whatever. Keep the balance low, and pay it off when the bill comes. No need to carry a balance over the billing cycle, and definitely don't run up a balance. Use it, pay it. In short order, you'll have a little history to build a score from.

There may be other things you can do, but that's the sure-fire, do it now, ground up way to create credit history for yourself. Get credit. Use credit (responsibly). Pay credit on time.

$commenter.renderDisplayableName() | 09.30.20 @ 15:19


January 27, 2016

For more on secured credit cards, see

$commenter.renderDisplayableName() | 09.30.20 @ 15:19