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August 21, 2013 | improving-your-credit

How to Start Building Your Credit Early in Life


As a young adult faced with school, work, and other responsibilities, you may underestimate the importance of establishing your credit history early in life. Even if you are not ready to buy a home or a car just yet, building your credit early will help you qualify for these major purchases when you are ready.

If you don’t already have a bank account, you should first open one to show lenders that you can responsibly manage your finances. Since you may not have very much credit history, you should consider building credit history with small, manageable loans that have the lowest interest rate you can find. Amplify Credit Union offers Savings Secured and Certificate Secured Loans that are great for starting a new borrower off on the right foot. These types of secured loans are secured against money you deposit into a savings or certificates of deposit (CD), and because of that, the interest rate is very low.

Amplify recommends balancing your credit profile with both installment and revolving accounts (check out our Amplify Your Credit Score Infographic) to show potential lenders that you can responsibly manage both types of loans.