How to Kick Off Your Credit Score at 18
Turning 18 comes with a lot of exciting milestones — voting, heading to college or your first job, and maybe even getting your own car or apartment. It’s also the perfect time to start building something that will help you for years to come: your credit score.
A strong credit score can open doors to better loan rates, easier approvals, and long-term financial freedom. Here’s how to start building it the smart way — and how parents can help their teens begin with confidence.
A Note for Parents
If you’re a parent or guardian, now is the perfect time to start teaching healthy credit habits. Encourage your teen to open their own account, discuss how credit works, and help them understand the importance of paying on time. You can even add them as an authorized user on your ICCU Credit Card to help them begin building credit responsibly while you guide them along the way.
💡 ICCU Tip: Have open money conversations! Talking about credit early helps your teen make informed financial decisions later.
1. Open a Checking and Savings Account
Before diving into credit, build your financial foundation. A checking and savings account helps you manage money responsibly and gives you a trusted relationship with your financial institution (like ICCU!).
Consistent deposits, careful spending, and saving regularly show financial stability, which is a great first step before applying for credit.
💡 ICCU Tip: Set up direct deposit to automatically add money to your checking or savings account. It’s an easy way to stay consistent and build good money habits.
2. Start with a Credit Card That Fits You
A beginner-friendly option, like an ICCU Credit Card, is a safe way to start building your score. Use it for small, manageable purchases and pay off your balance in full each month.
This shows lenders that you can borrow responsibly and helps establish your payment history, one of the biggest factors in your credit score.
💡 ICCU Tip: Use your credit card for something you already pay for each month, like gas or a streaming subscription, and pay it off right away.
3. Keep Your Balance Low
A good rule of thumb: try to use less than 30% of your credit limit at any time.
If your limit is $500, aim to keep your balance under $150. This keeps your “credit utilization” low, which can positively impact your score.
💡 ICCU Tip: You don’t need to carry a balance to build credit; paying in full each month is the best habit!
4. Always Pay On Time
Payment history makes up about 35% of your credit score. Paying bills, credit cards, or loans on time — every time — is one of the simplest ways to build excellent credit. Setting up automatic payments or reminders can help you stay consistent.
💡 ICCU Tip: Even one late payment can hurt your score. Set up alerts in online banking so you never miss a due date.
5. Check Your Credit Regularly
Monitoring your credit score helps you track your progress and spot any errors or unusual activity early. ICCU members can easily keep an eye on their credit through our Credit Score Monitoring Tool in online banking, it’s free, secure, and updates frequently.
💡 ICCU Tip: Reviewing your credit report at least once a year can help protect you from fraud or identity theft.
6. Be Patient — Building Credit Takes Time
A strong credit score isn’t built overnight. What matters most is consistent, responsible behavior over time. With smart spending and on-time payments, you’ll be off to a strong start by your next birthday.
Start Smart with ICCU
Whether you’re applying for your first credit card or learning how credit works, we’re here to help. Visit any branch or call 989-773-5927 to talk with one of our friendly team members about starting your credit journey.
Your future starts now — and ICCU is here to help you build it.