 TITLE: A Beginner’s Guide to Building Credit CONTENT: How to Start Building Your Credit\n---------------------------------\nYou can start to build credit by adding accounts to your credit reports now. If you're just beginning, you have options:\n*   **Secured credit card**: To get a secured card, you need to put down a cash deposit with the credit card issuer, which is generally equal to the card's credit limit. That money is held in a separate account, and the funds guarantee the credit line so there is virtually no risk for the lender. If you run up a debt that you don't pay, the lender simply keeps the deposit. But if you pay all your bills on time, you'll likely receive your deposit back. When deciding on a secured credit card, make sure to choose one that reports payments to the three credit bureaus\n*   **Low limit unsecured credit card**: These can also be an option, since the issuer won't lose much if you default. Low limit unsecured credit cards tend not to require a high credit score, and won't require upfront cash like a secured card. They do usually charge high interest rates, however, so shop around when you're looking for one of these cards.\n*   **Become an authorized user**: Another possibility is to become an authorized user on a close friend's or relative's credit card account. Most issuers will send the account history to all cardholders' credit reports. When it appears on yours, it will jumpstart your credit history. An authorized user doesn't even have to use the card to reap the rewards, as long as the primary cardholder uses it and makes payments on time.\n*   **Credit-builder loan**: Applying for and repaying a loan will also help improve your scores, since it adds variety to the mix. Credit-builder loans, usually offered by credit unions, can be a great addition. Like a secured credit card, you deposit a sum of cash into a separate account and receive a loan that matches the deposit. You then repay the loan in installments (plus interest) over a fixed term. When you've paid it off, you get your deposit back.\n*   **Cell phone and utility bills**: If you have utility accounts or a cellphone in your name, you can add them to your credit report with Experian Boost™† . It's a free program, and once those accounts are listed on your credit reports, your timely bill payments will add points to your credit scores.\nAfter you have at least one type of credit account on your credit reports, consider applying for another in your name to add variety.\nJust be sure to treat credit cards the right way. Pay the debt in full by the due date every month. If you do charge something expensive, be conscious of your credit utilization ratio—the amount of credit you're using relative to your available credit. Owing less than 30 percent of your available credit is considered good, but it's better not to carry a balance from month to month at all. END