If you already have 3 open accounts (even if they are past due), you already have what you need for credit building! Keep making on-time payments every month, and your credit will improve over time. It will take at least 3-6 months of on-time payments for your score to improve. Only open new accounts to get things you need, with payments you can afford.

If you have less than 3 open accounts, you should consider opening new accounts in order to build credit. At least 3 open accounts is best for credit building.

When you are looking for new accounts, look for:

• Reputable lender (banks, credit unions, and Community Development Financial Institutions are a good place to start!)
• Low interest rates
• Low fees or no fees
• Clear, written terms and conditions, in language you understand
• Affordable monthly payments

When you are looking for new accounts, avoid:

• Online lenders you have never heard of
• High interest rates
• High fees
• Confusing terms and conditions, or terms and conditions that change
• High monthly payments

Remember, to build credit, you need on-time monthly payments and at least 3-6 months to get your first credit score or to improve your credit score. Be patient! Credit building takes time.

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To Do: If you have less than 3 open accounts, explore your options for new accounts! Think about what type of credit you need, and where you’d like to get it. Compare your options before applying.

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Tip: A mix of different types of credit is best for credit building.

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