Personal Insights
A beginner’s guide to building credit from scratch

Article 6 min read Published April 6, 2026

To build credit from scratch, start by opening at least one credit-reported account — such as a secured credit card or a credit-builder loan — use it responsibly for at least six months, and make every payment on time. Keeping balances low and applying for credit only when needed helps establish a strong, healthy credit history over time.

Building credit for the first time can feel intimidating, but it becomes much easier once you understand how credit works. Having no credit history — often called being credit invisible — is common, affecting millions of Americans. You only begin generating a credit score once you have a credit‑reported account with six months of activity behind it.

Financial education sources also highlight how having little or no credit history can lead to higher interest rates, rental challenges or higher deposits for utilities and services, because lenders and providers often need a track record to assess risk.

For all those reasons and more, some people find that having a financial wellness conversation first with a banker — such as a personalized Regions Greenprint® plan — helps them think through which path feels most manageable based on their income, goals, and existing habits.

Regardless of the path you decide to take, keep these credit-building principles in mind.

1. What does it mean to have “no credit”?

Being credit invisible is different from having bad credit. If you’ve never used credit — such as a credit card, auto loan, or credit‑builder loan — there’s no record for lenders to evaluate. With consistent reporting for about six months, an initial score is generated and continues to evolve over time.

2. Why should you check your credit reports first?

Even if you believe you have no credit history, reviewing your credit reports helps confirm that:

  • Personal information is accurate
  • No accounts are listed incorrectly
  • There are no signs of fraudulent activity

Addressing errors early can help you avoid setbacks as you begin building credit.

3. What beginner‑friendly tools can help build credit?

Several tools are designed to help new borrowers establish credit safely:

Secured credit card

A secured credit card, such as the Regions Explore Visa®, requires a refundable deposit, making it one of the more accessible starting points. Your on‑time payments are reported to the credit bureaus, helping you build history.

Credit‑builder loan

Options like Regions’ saving-secured line of credit report on time payments while holding funds in savings, helping build credit and savings together.

4. What credit habits matter most when you’re starting out?

Early behaviors have an outsized impact on your long‑term credit strength.

  • Pay on time. Payment history accounts for about 35% of your credit score.
  • Keep balances low. Aim to use about 10–30% of your available credit. This supports a healthier utilization rate and gradual score improvement.
  • Limit new applications. Each credit application can create a “hard inquiry,” which may temporarily lower your score. Apply only when necessary.

5. How long does it take to build credit?

Most people see their first credit score after roughly six months. Improvement often continues during the first year, with stronger scores typically developing after 18–24 months of consistent, responsible use.

Regions Next Step® resources, including the Credit Resource Center, offer budgeting tools, credit education, and financial wellness guidance to help you stay on track.

Another option to begin building credit

With a Self1 subscription2, Regions customers can choose to have everyday payments — like rent and utilities — reported to the credit bureaus3, helping them get credit for bills they already pay. This option may be helpful for those who want to begin building credit without taking on new debt.

Building credit is a significant milestone, and every step you take helps create more stability and more options for the future.

Take the next step

  • Review your budget to understand your cash flow.
  • Explore financial‑wellness tools that support your goals including learning what to avoid to help build credit.
  • Reflect on your longer‑term financial priorities.
  • Schedule a Regions Greenprint® plan appointment with your Regions banker to develop a credit-building plan.

FAQ: Building credit for the first time

It means you don’t yet have enough reported borrowing history for the credit bureaus to generate a score. This is common for people who have never had a credit card, loan or other credit reported account.

Typically, about six months of activity on a credit reported account.

Begin with a tool designed for new borrowers, such as a secured credit card or a credit builder loan.

No. Debit cards, prepaid cards, and bank accounts are not reported to credit bureaus and therefore do not build credit.

Paying on time, keeping balances low and limiting credit applications.

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