In part one of “How to Build Credit When You’re Just Starting Out”, you could see how getting a cosigner or becoming an authorized user will help you to establish favorable credit history.  In part two, you’ll see how techniques such as diversifying debt will help to really improve your credit report.

#1 – Diversify Debt:  Don’t just rely on credit cards to establish your credit history.  You will want to diversify the kind of debt you’re carrying with other kinds of loans such as car loans and even personal loans. This gives lenders a well-rounded look into your level of responsibility.  

#2 – Try Your Bank First:  When in doubt, try your personal bank for a loan. This is a good option for those who are just starting out because banks will usually offer secure and unsecured loans to customers in good standing.  

Implementing these two strategies will help you to establish credit for the first time. They are also much more aggressive for increasing your score. Check out part three for some final strategies on how to build good credit when you’re just starting out.