1. Start with a Secured Credit Card
Unlike traditional credit cards, a Share Secured Credit Card protects both you and the lender since your credit limit matches your security deposit, typically $200 to $500. The funds are placed in a designated account and can only be withdrawn under certain circumstances. Many recent high school and college graduates prefer this option because it’s often easy to get approved, you can earn interest on the money you deposit, and your payment history is reported to credit bureaus, just like with regular credit cards.2. Keep Credit Utilization Low
Credit utilization is the portion of your total credit that you are using. It’s an important factor in assessing credit health, as lower numbers indicate to lenders that you can manage credit responsibly. Keeping your balance below 30% of your limit shows that you don’t rely too heavily on borrowed funds, even if you’re using a card to build credit.Did you know?
There are three major credit reporting bureaus in the United States: Experian®, Equifax®, and TransUnion®. Credit issuers send account activity to one or more bureaus who in turn create credit history reports. HawaiiUSA members with Digital Banking can request copies of their credit report and credit score through MyCreditScore. Another trustworthy source for your free credit report is AnnualCreditReport.com.
3. Always Pay Bills on Time
Your payment history is usually the most important part of your credit score, so paying your bills on time is the best way to build good credit. Services like Experian Boost* let you benefit from never missing a payment on everyday bills, like utilities and video streaming services. This tool helps you build your credit without taking on new debt by reporting timely bill payments to the major credit bureaus.
4. Get Your Rent Reported
Rent payments provide another avenue for building good credit. Services like Rental Kharma or RentTrack transform these routine monthly payments into credit-building opportunities by reporting them to major credit bureaus. Speak with your landlord to see if they report or are willing to report such payments.Did you know?
There are two main credit scoring agencies in the United States: FICO® and VantageScore®. They use information found in credit history reports to calculate credit scores.
5. Stay on Top of Student Loan Payments
Federal and private student loan payments appear on your credit report, helping you build your credit history while you’re in college and after you graduate. Paying even a little on your student loans while you’re in school can lower your total debt and demonstrate that you are managing money responsibly. Missed payments, however, can damage your credit and cause a loss of eligibility for deferment, forbearance, and certain flexible repayment plans.Did you know?
Lenders use different credit bureaus and scoring models based on the type of loan or kind of risk they want to assess. This is why the credit score you see on sites like Credit Karma might not match the one your lender sees. For example, you might see a 700 on Credit Karma, but your lender could see a 720 or a 680 based on the actual source or model requested.
6. Become an Authorized User
Becoming an authorized user on a parent’s or trusted family member’s credit card can help build your credit by adding their positive credit history to yours. When they add you to specific credit accounts, their strong payment history and low credit utilization appears on your credit history report. This lets you start building good credit right away.Building good credit doesn’t mean you have to go into debt or use complicated financial plans. Start by implementing one of these tips and adding others when you’re ready. Visit our Responsible Borrowing resources to learn more about building and maintaining good credit.
*As of May 2025, TransUnion and Equifax do not provide comparable services. Experian Boost and UltraFICO services do not affect scores calculated using TransUnion or Equifax credit report data. Any improvement you see will be limited to your Experian-based credit scores and will not affect your TransUnion or Equifax scores.
