A credit score is one of the factors that impact how easily and affordably you can get credit. A low or a poor credit score may be one of the reasons why your credit score application gets declined. Credit bureaus compute your credit score based on factors like your repayment discipline, credit mix, credit utilization ratio, and credit history. Your credit score is crucial to get the approval on your loan or credit card application and get the best offers. If you check your credit score and find out that you have a poor or nil credit score, there are proven methods to build and maintain a great credit score.

Here are four important things a beginner should do to build a good credit score:

Tip 1: Apply for a Credit Card

Most lenders and credit card companies think before lending money to people without a credit history. This is because lenders evaluate whether you will be able to repay the loan amount on time. So, without lenders willing to give you credit, how can you build credit? One of the most important financial products that can help you start your credit journey is a credit card. Applying for a credit card is the most convenient and common way to build your credit score on your own.

There are two types of credit cards - secured and unsecured credit cards. 

Unsecured Credit Card 

The unsecured credit card is the best option to build your credit score, but beginners usually cannot avail of it due to no credit history. Unsecured credit cards do not require any collateral or security. The applicant must have a considerable and good credit history along with sufficient income that indicates his/her creditworthiness. If you are earning, you can try applying for an unsecured credit card. You can start building your credit score if you obtain it. Else, move to the next type of credit card, which you can get without trouble

Secured Credit Card 

If lenders are not paying any attention to your unsecured credit card application, then you can go in for a secured credit card. Those who are not earning and are also new to credit can apply for a secured credit card as they are not eligible for an unsecured credit card. Those who are new to credit cards can easily access secured credit cards as they are issued against a security amount or collateral. In most banks, the security is usually in the form of a fixed deposit.  You can compare and apply for a credit card online according to your spending patterns, lifestyle habits, and eligibility.

Also Read : What is a Good Credit Score and Tips to Maintain It

Tip 2: Don’t Put Multiple Credit Card Applications At Once 

If you have no score or a low credit score, the probability is that your credit application may get rejected. And while this may push you to apply again with a different lender, it is not prudent to apply for multiple credit. Multiple applications will have a negative impact on your score because each lender will do a hard enquiry to check your credit score. Registering multiple enquiries in a short time temporarily brings down your credit score. Applying for too many credit cards (or loans) is a sign of credit-hungry behavior. This will impact your credit score negatively. 

Tip 3: Become An Authorized User of A Credit Card

An authorized user is added to an existing credit card owned by, say their parents or siblings. If you do not have a credit score, this can be one of the most convenient ways to build your score. As an authorized user, you can use the main account holder’s credit profile and use the card wisely. In this case, you should use the card very responsibly as your actions not only affect your credit score but also the credit score of the main account holder. Subsequently, you should also be aware about the main account holder's credit score.

Tip 4: Regularly Use Your Credit Card But Not Up To The Limit 

After you get your credit card, use it regularly. Timely repayment and continuous use will help you build your credit history. This is essential for building a credit score. Try to use your credit card every month so that you can not only build history but also get into the habit of repaying on time. But at the same time, make sure that you do not use your credit card to the maximum limit each month. As a general rule, maintain a credit utilization ratio below 30%. Try using within 30% of your credit limit. This will impact your credit score. A high credit utilization ratio projects you as credit hungry and has a negative impact on your credit score. Do a free credit score check on and Regularly monitor the effect of usage on your score. 


Besides the above four tips, you can also build your credit by paying your EMIs fully and on time. You can also try an unsecured credit card after a year. You cannot build your credit in a day, and it can be done only over a period of time. It may take six months or even a year based on how well you manage your credit and how often you use it. It will take even more time to build an impressive credit score and to maintain it requires a lot of perseverance too.

FAQS Four Important Things A Beginner Should Do To Build A Good Credit Score

1:What is the most important thing to do to have a good credit score? 

The most important thing you can do to improve your credit score is to make timely payment of bills every month. If you keep doing this over time, your scores will improve. You can set up auto credit payments to help your score increase over time.     

2:Why is it important to build and maintain good credit? 

People with a good credit score are often offered lower interest rates and higher credit approval rates. Paying less interest on your debt can save you considerable amount of money over time. Building your credit score is thus one of the smartest financial moves you can make. 

3:What are 5 proven ways to build your credit score? 

The 5 proven ways to build your credit score are, check your credit report, set up automatic bill payments, decrease the amount you owe, don’t close old accounts in a hurry, and don’t ask for credit too frequently.