And you can use a secured card just like a traditional (aka unsecured) credit card to help you establish good credit, as long as you practice responsible credit behavior.Ī secured card is nearly identical to an unsecured card in that you receive a credit limit, can incur interest charges and may even earn rewards. These cards are typically easier to qualify for if your credit history is poor or non-existent. Secured credit cards are a great way to build credit if you have none. You'll want to make a clear plan for how you'll pay back any purchases you make with the card, so you don't risk wracking up debt on someone else's card. You don't want to become an authorized user on an account that has debt or late payment history, since those negative actions will appear on your credit history and counteract any credit building you plan on achieving.Īlso, make sure you practice responsible behavior as well. Plus, you might even get some special perks as an authorized user, such as airport lounge access.īut before you become an authorized user, make sure your family member or friend has good credit and uses their credit card responsibly. Authorized users also have zero liability, so this is a low-risk way to build credit. As an authorized user, you can piggyback off the primary account holder's credit and as a result, establish your own credit history. One of the quickest and easiest ways to build credit is by becoming an authorized user on a family member's or friend's credit card.
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