In your journey to establish or build your credit, here’s a simple yet effective roadmap: Start by visiting your local bank to open a savings account and inquire about applying for a secured credit card with an initial deposit ranging from $100 to $1000, based on your affordability. Your deposit secures the credit card, and once it arrives, responsible usage begins.

Use the card wisely – spend what you can comfortably repay, and ensure you make at least the minimum payment each month. This practice is essential to establish a positive credit history with the three major credit bureaus. After a year of responsible usage, your initial deposit will be returned, and your credit limit may increase.

Here’s Tip #1: For newcomers, opt for prepaid phone plans instead of postpaid ones. Avoid being enticed by new phone offers with upfront payments. Purchase your phone separately and use a prepaid plan. This advice helps you manage your expenses effectively.

After starting with a secured card, you’ll begin receiving credit card offers. However, exercise caution and refrain from applying for Tier 1 cards like Chase, Citi, Wells Fargo, Bank of America, etc. Instead, consider Tier 2 options such as department store cards or Capital One. Avoid cards with annual fees, especially those with monthly fees like Credit One, as they tend to have unfavorable terms. Store cards, despite their higher interest rates, often offer a reasonable choice, with no monthly fees.

Remember, building credit requires patience and discipline. Start with a minimum of three cards in your first year, avoid the allure of numerous offers, as they offer no guarantees of approval. Stay patient and committed to your credit-building journey.