Approximately 7 million U.S. adults, or 2.7% of the population, were considered “credit invisible” in 2020, lacking enough credit history to generate a credit score. This can hinder financial moves like taking out loans or buying a car, making it crucial to establish credit history early on.

To begin building credit, consider tools like secured credit cards with refundable deposits or credit-builder loans from banks or credit unions. Becoming an authorized user on a trusted individual’s card can also help establish positive payment history.

While it’s important to start building credit, avoid applying for too much credit too quickly, as each application leaves a mark on your credit report. Consistent, responsible use of one or a few accounts over time is key to building credit effectively.

Focus on making on-time payments, keeping balances low, and maintaining active accounts to demonstrate responsible credit use. It’s a long-term process, but starting early and being patient and consistent can lead to a solid credit foundation that pays off in the future.

Read more at Yahoo Finance: Here’s the Beginner’s Credit Mistake That Could Haunt You for Years