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Your credit history can affect aspects of your life beyond borrowing. Employers, insurance companies, landlords, and even cell phone providers may review your credit history to make informed decisions about you.
If you’re like the 83% of Americans who wish to learn new ways of thinking about and dealing with money, according to the 2025 Wells Fargo Money Study*, understanding how to establish and build credit is a good place to start.
Ways to build credit
Apply for a no annual fee credit card
Consider applying for a credit card, specifically one with no annual fee that you can keep for the foreseeable future. Many lenders offer credit cards specifically designed for those with no credit history, which can have easier qualification standards and help you build credit when you’re starting out. Make sure you establish responsible spending habits, like paying off your credit card in full each month, to set yourself up for success.
Ask about a cosigner or co-applicant
Applying for a loan with a cosigner or co-applicant may help you qualify for better credit terms. Remember, your cosigner or co-applicant shares responsibility for payments, and the credit history for this account (whether satisfactory or not) will appear on both of your credit reports.
Explore secured cards or loans
Secured credit cards or loans require collateral, such as a cash deposit, which acts as security for the lender. As a result, qualifying for these may be easier. While Wells Fargo currently does not offer these products, there are other valuable options worth exploring. Remember, if you don’t adhere to the terms of your secured credit product, you risk losing your collateral and secured credit cards may have higher interest rates and more fees than unsecured cards.
Understanding credit basics
Building and maintaining your credit is an ongoing process, and it helps to understand a few important basics.
Before opening your first credit account, take a moment to ensure you’re prepared to manage credit responsibly. For example, when it comes to loans, this may mean being sure you have enough income to pay off your debt each month. Similarly, with credit cards, you’ll want to try and charge what you can afford and pay your bill on time each month. Paying your credit card bill off in full (or significantly down) each month can help you avoid paying high interest fees. Either way, paying on time means you’ll start building a better credit history.
It can help to regularly look at your credit report—which is a record of your past and ongoing credit activity, including how you’ve managed your accounts over time. Your credit score is a single number that represents the contents of your credit report.
Get to know which activities have an impact on your credit report and credit score. For example, paying your bills on time and making sure you don’t max out your accounts oftentimes have a positive impact. The length of your credit history, your mix of credit, and whether you’re actively seeking new credit may also have an impact.
Next steps on your credit journey
Now that you have a roadmap for building credit, it’s time to take action. Start by choosing one or two of the outlined strategies that would work with your current situation. Remember, building credit is a gradual process, and consistency is key. Monitor your spending regularly to track your progress and adjust as needed. Explore Wells Fargo’s resources and tools along the way to help you better navigate credit successfully.
