How to Build Credit at 18

Just turned 18? Building credit should be on your to-do list alongside voting or getting that first tattoo.

Starting early gives you a head start. Good credit helps you rent apartments, get utilities without deposits, and even land jobs. Plus, it can save you money through lower interest rates.

Why start now?

Good credit makes life easier by helping you:

• Rent apartments without needing cosigners or extra deposits

• Set up utilities in your name

• Get approved for credit cards and loans

• Pass employment background checks

• Pay less for car insurance

• Refinance student loans at better rates later

Best ways to start building credit at 18

1. Try KOHO's Credit-Builder Loan

• KOHO reports your payments to credit bureaus

• You can't overspend since it's not a traditional credit card

• The app helps you track spending and pay bills on time

• No credit check needed to start

2. Get Your First Card

At 18, you can apply for a credit card. Student cards are good options if you're in college. If you can't qualify, try a secured card where you put down a deposit. Use it responsibly for 6-12 months and you might upgrade to a regular card.

3. Become an Authorized User

Ask your parents to add you to their credit card. Make sure their card company reports authorized users to credit bureaus so it helps your credit.

4. Pay Student Loans On Time

If you have student loans, making payments on schedule builds credit. Even loans in deferment while you're in school can help establish your credit history.

5. Add Regular Bills to Your Credit Report

Start paying for your cell phone and internet plans under your own name.

Common mistakes to avoid

• Missing payments: Even one late payment can hurt your score for years

• Forgetting to pay final bills: When moving out, pay all utility balances

• Taking on too much debt: Only charge what you can pay off each month

• Carrying balances: Pay your full card balance to avoid interest and keep utilization low

• Applying for too much credit: Multiple applications in a short time can hurt your score

Typically it takes six months of history to get your first score. Be patient and stay consistent with good habits.

Start building credit today

Building good credit habits now sets you up for success later. Even small steps like becoming an authorized user or getting your first card can make a big difference when done right.

Remember to pay bills on time, keep debt low, and check your credit report regularly to track your progress. And don't stress if your credit score isn't perfect right away – building credit takes time.

The habits you form at 18 can open doors for years to come. Start small, stay consistent, and watch your financial options grow.