Learning how to build credit at 18 can help you rent an apartment, take out a car loan, and help qualify for the lowest interest rates. As an 18-year-old, though, your credit profile might be too thin to get approved without a cosigner. The good news is that you can start building credit with the right beginner tools and a few consistent habits.
Key takeaways
Start early: Building credit at 18 gives you a head start on qualifying for apartments, lower insurance rates, and better loan terms.
Use beginner-friendly tools: Secured cards, student cards, and authorized user status can help you build credit with no prior history.
Focus on consistency: Paying on time and keeping your balances low are two of the most important credit-building habits.
Avoid common pitfalls: Try not to overspend, submit too many credit applications, or make late payments to protect your growing credit score.
Third-party brands and companies are mentioned for informational purposes only. Chime does not sponsor, endorse, or partner with any of these brands or companies, and they do not sponsor or endorse Chime.
How to build credit at 18
You can start building credit at 18 with a secured credit card, a student credit card, or authorized user status on someone else's account. These tools often report your activity to the credit bureaus, which is how a credit score gets created. Pick the one that fits your situation and income.
Once you have a bank account open, two habits matter most. Pay every bill on time, since payment history is the biggest factor in your score. Keep your credit utilization low by using only a small share of your available credit.
A VantageScore® can appear within about a month of your first account, while a FICO® Score takes at least six months of credit history. (see disclosure 1) Starting early can help put you ahead. By having a card and paying the balance you may begin to see progress.
Understanding how credit works
In a nutshell, your credit score is your financial track record. Your credit report contains a detailed history of your credit accounts and payment history. Lenders and some landlords review your credit report to decide if they'll approve you for loans, credit cards, or apartments.
When you use a loan or credit card, your lender typically reports your payments to the three major credit bureaus – Equifax®, Experian®, and TransUnion®. Making on-time payments helps to build a positive credit history that boosts your credit score. Late payments may drag it down.
What is a credit score?
Your credit score is a three-digit number ranging from 300 to 850 (see disclosure 2) that's based on the information in your credit report. Higher scores signal to lenders that you're trustworthy with credit. Lower scores suggest that you're a riskier candidate for a loan or credit card.
FICO®, a type of credit score that many lenders rely on, calculates your score based on five key factors:
Payment history: This is whether you pay bills on time, and it makes up 35% of your score. (see disclosure 3)
Amounts owed, or credit utilization: This is how much of your available credit you're using, and it accounts for 30% of your score.
Length of credit history: This refers to how long you've had credit accounts, making up 15% of your score.
Credit mix: This is the variety of credit types you have, like cards and loans, and it influences 10% of your score.
New credit: This factor looks at your recent credit applications and accounts, contributing to 10% of your score.
If you're new to credit, you may not have a credit score yet. A VantageScore® can appear within about a month of your first account, while a FICO® Score takes at least six months of credit history to generate. (see disclosure 1)
Why you should start building credit at 18
The sooner you start building credit as a beginner, the earlier you can unlock the perks of good credit. Starting at 18 helps future you avoid being 'credit invisible' (see disclosure 4) – someone with no credit history or too little history to generate a score.
Building credit at 18 can unlock benefits both now and in your future:
Lower interest rates: With better rates, you could save on mortgages, personal loans, and auto loans over your lifetime.
Apartment approval: Landlords often review your credit before approving a rental application.
Cheaper insurance: Auto and home insurance companies generally offer better rates to people with good credit.
Job opportunities: Some employers check credit history during the hiring process.
6 ways to build credit at 18
Given the financial benefits of having good credit, it's smart to start building it early. Here are six ways you can get started at age 18.
1. Open a student or secured credit card
If you're a student, consider applying for a student credit card. These cards help you build credit with minimal or no credit history, though they often come with relatively low credit limits. However, they often have high interest rates.
Another option is a secured credit card. You put down a cash deposit that sets your credit limit. You get that deposit back when you close the card with a zero balance.
The Chime Card™ is one of several secured options built for beginners. With Safer Credit Building, your monthly balance can be automatically paid from your secured deposit account, helping you avoid missed payments. (see disclosure 5) Chime reports your account activity to all three credit bureaus, so responsible use may help you build credit over time.
The Chime Card has no credit check, no interest, (see disclosure 6) and no annual fee, so you can build credit with responsible use. Chime Prime™ members (see disclosure 7) can earn up to 5% cash back on a category of choice, and Chime Plus™ members can earn 2% cash back. (see disclosure 8)
2. Get a credit builder loan
A credit builder loan works differently than a traditional loan. Instead of receiving money upfront, you make monthly payments that the lender deposits into a savings or certificate of deposit (CD) account. Once you finish paying, the lender gives you the full loan amount back minus any fees.
The lender reports your payments to the credit bureaus along the way. Any tool that reports your on-time payments can help you build credit, as long as you pay on time. If you'd rather skip a loan, the Chime Card offers a similar reporting benefit through Safer Credit Building.
3. Become an authorized user
If you have a parent or family member with excellent credit, ask them to add you as an authorized user on their credit card. Many credit card companies then report that card's payment history under your name, which can boost your score. If the primary cardholder misses payments, though, it could hurt your credit too. Once you're ready for an account in your own name, the Chime Card is one option that reports to all three bureaus with no credit check.
4. Pay all of your bills on time
Payment history accounts for 35% of your credit score, making it the most important factor. Set up autopay to pay your bills on time automatically, and make sure you have enough money in your account to avoid overdraft fees.
Chime®'s real-time alerts can help you stay on top of due dates. The Chime Card Safer Credit Building feature can also set up automatic on-time payments, so you don't have to remember each one.
5. Check your credit score and credit reports
You can check your credit score for free through many credit-tracking websites, including myFICO.com, or your financial institution's app.
You can also order your full credit reports from all three bureaus weekly at AnnualCreditReport.com. Your credit reports won't contain your score, but they will give you a bird's-eye view of your accounts.
Monitor your report for errors, and dispute any you spot with the credit bureau. Chime members can also view their credit progress right in the app.
6. Keep your credit utilization low
Your credit utilization ratio – how much of your available credit you're using – is the second most important scoring factor. You can calculate it by dividing your balance by your credit limit.
For example, a $300 balance on a $1,000 limit equals 30% utilization. Keep your credit utilization below 30% (see disclosure 9) for a healthy score, though closer to 0% is even better.
Beginner credit cards for 18-year-olds
Choosing your first card is easier when you compare the details that matter most for beginners. To decide what may work best for someone starting at 18, our team focused on the features that help a thin or no-credit-history applicant get approved and start building: a low or no annual fee, easy approval with no or minimal credit check, no or low deposit, reporting to all three credit bureaus so on-time payments count, and rewards or benefits that add value at no added cost. We gave extra weight to cards that stay accessible to people who have no credit history yet. These are popular options that fit those criteria, not an exhaustive or ranked list. Here's how a few stack up.
Card Name | Type | Credit Check Required | Key Benefit |
Secured | No credit check | No credit check, no interest, and up to 5% cash back for Chime Prime members (see disclosure 8) | |
Discover it® Student Cash Back (see disclosure 10) | Student | Yes | 5% cash back in rotating categories plus a first-year Cashback Match |
Chase Freedom Rise® (see disclosure 11) | Student/starter | Yes | 1.5% cash back on all purchases, plus 3% on dining for the first 6 months, with no security deposit |
Best first credit card for 18-year-olds
The right first card depends on different factors for different people. For many it is a question of wanting a secured option with no credit check or a student card that rewards everyday spending. We chose the three below using the same criteria as above – low or no fees, likelihood approval for thin or no credit, three-bureau reporting, and rewards that add value at no added cost – starting with a secured pick. Compare the terms against your own situation before you apply.
Chime Card
The Chime Card is a secured card designed to help beginners build credit with responsible use. It reports to all three credit bureaus and skips the interest, annual fee, and credit check that trip up many first-timers.
Welcome offer: None.
Annual fee: $0.
APR: No interest.
Credit score needed: None, no credit check.
Who is this card for? This card fits 18-year-olds who can set up direct deposit and want to build credit responsibly, with no credit check or annual fee. Chime Prime members can earn up to 5% cash back in a monthly category of choice up to $1500 in qualifying purchases per month, and Chime Plus members can earn 2% (see disclosure 8) .
Why it makes the list: With no credit check, no interest, and no annual fee, the Chime Card is one of the most accessible ways to start building credit with zero history, and it reports to all three bureaus, while adding up to 5% cash back for Chime Prime members.
Discover it® Student Cash Back
The Discover it® Student Cash Back card rewards students for everyday spending while they build credit. It leans on rotating cash back categories and a first-year match on what you earn.
Welcome offer: $100 statement credit after you spend $300 in the first 3 months, plus an unlimited Cashback Match at the end of the first year.
Annual fee: $0.
APR: 0% intro APR for 6 months on purchases, then 16.49%–25.49% variable.
Credit score needed: No credit score required to apply.
Who is this card for? This card fits students who want to earn rotating cash back while building credit. It can reward you for spending you'd do anyway.
Why it makes the list: Discover it® Student Cash Back is a strong pick for students who want rewards while building credit, with a $0 annual fee, no credit score required to apply, and 5% cash back on rotating categories on up to $1,500 in combined purchases each quarter when activated, plus a first-year Cashback Match. (see disclosure 10)
Chase Freedom Rise®
The Chase Freedom Rise® card is a starter option for people new to credit who want flat rewards without a deposit. It offers 1.5% cash back on every purchase, plus 3% cash back on dining for the first 6 months on up to $6,000 in spending.
Welcome offer: $25 statement credit for enrolling in automatic payments within the first three months.
Annual fee: $0.
APR: 18.24%–27.74% variable.
Credit score needed: Limited or no credit history.
Who is this card for? This card fits new-to-credit applicants who want flat 1.5% cash back with no deposit. It can reward everyday spending without category tracking.
Why it makes the list: Chase Freedom Rise® stands out as a flat-rewards starter with no security deposit, offering a $0 annual fee, a flat 1.5% cash back, and 3% back on dining for the first 6 months for people new to credit. (see disclosure 11)
Mistakes to avoid when building credit
Here are some mistakes to avoid along your credit-building journey.
Overspending: Only borrow what you can afford to repay on time, since missed payments can severely damage your score.
Applying too often: Each application may trigger a hard credit check (see disclosure 12) that may temporarily lower your score. Space out applications by at least six months. (see disclosure 13)
Maxing out cards: High balances hurt your credit utilization ratio. Keep your balances below 30% of your total credit limit.
Missing payments: Lenders may report a payment to credit bureaus once it's 30 days late, and that late payment stays on your report for up to seven years. (see disclosure 14)
Start building your credit today
Building credit at 18 gives you a head start on lower borrowing costs and better financial opportunities throughout your life. Focus on paying loans and credit cards on time, keeping your credit card balances low, and checking your progress regularly.
For more strategies, check out our guide on how to build credit without a credit card.