Smart ways to establish credit

Here are some smart ways to establish your credit

RICHMOND, Va. (WWBT) - Having good credit is important to be able to get a loan or buy a house. Lenders, landlords and employers may check your credit history.

There are more ways to establish credit now than ever before!

You build your credit score by adding positive information to your credit reports, which are files of financial data all about you.

These files are kept by the three major credit bureaus Equifax, Experian and TransUnion.

Our partners at the financial website Nerdwallet say one way to build credit is to ask someone with good credit, like a mom or dad, to add you as a user on their credit card. They don’t have to let you use it-- they just have to add you. Then you benefit from their credit history.

Another way is to apply for a secured credit card. They usually require a deposit upfront and the credit limit will usually be a very small amount.

Or you can try rent reporting.

Many companies like LevelCredit, Rock the Score and CreditMyRent will let you or your landlords report rent payments to the credit bureau to build a credit history.

Finally, there’s Experian Boost. A free service that lets you add cell phone and utility payments to your Experian credit report.

This information, which is not typically counted toward your score, is used to calculate your FICO score and can push it up higher.

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