Building Credit Like a Boss 

Did you know your credit score can impact your life goals? From getting approved for your dream home or car to something as simple as setting up utilities in your first apartment—credit matters. Your credit score shows how trustworthy you are when it comes to handling money.

A lot goes into building good credit, but don’t worry—we’re breaking it all down. You’ll learn how to build credit, what mistakes to avoid, and how to keep your score in tip-top shape!

Understanding Credit: What Is a Credit Score?

A credit score is the three-digit number that rates your credit based on your credit history. Scores range from 300 to 850—the higher, the better. A strong score increases your chances of getting approved for loans, credit cards, and more.

So, what affects your score?

• (35%) Payment History – Paying your bills on time is essential.
• (30%) Credit Utilization – Keeping your balances low relative to your limits supports steady growth.
• (15%) Length of Credit History – The longer you’ve used credit responsibly, the better.
• (10%) New Credit & Inquiries – Multiple recent accounts or hard inquiries can temporarily lower your score.
• (10%) Credit Mix – A healthy variety (credit cards, installment loans, etc.) can help.

Your score is compiled by the three main credit bureaus: Experian, Equifax, and TransUnion.

Credit Pulls and How They Affect Your Credit

You may have heard that checking your credit can hurt your score—and that’s only partially true. Credit checks (also called pulls or inquiries) come in two types:

Hard Pulls

• A hard pull happens when a lender checks your credit to make a lending decision. It can lower your score by a few points and requires your authorization. Common examples include:
  • Applying for a loan or credit card
  • Renting an apartment
  • Setting up certain utility services
  • Opening a phone plan

Soft Pulls

• A soft pull does not impact your score and typically doesn’t require your authorization (requesters must have a permissible purpose). Examples include:
  • Checking your own credit report
  • Employment background checks
  • Pre-approval or prescreened credit card offers

Not sure which type a company will use? Ask whether they’ll run a hard or soft pull. If you expect multiple checks in a short period, see if you can provide a recent copy of your report or request a soft pull to help protect your score.

How to Build Credit from Scratch

🔑 Pay Bills On Time (Every. Single. Time.)

Payment history makes up 35% of your score—so never skip a bill. Carrying past-due balances costs interest and hurts your credit.

👥 Become an Authorized User

Join a trusted family member’s or spouse’s card as an authorized user. Make sure the account is in good standing—and don’t put their score at risk.

💸 Get a Credit-Builder Loan

Build history before you need it. You make fixed payments; when the loan ends, you receive the funds (minus interest/fees).

💳 Use Credit (But Not Too Much)

Start with one tool—a card or a loan. Keep usage under 30% of your limit (under 10% is ideal). If you open a card, choose one that fits your lifestyle, like Honor’s Select Rewards Card for everyday spending.

Power Moves to Boost Your Credit Score

Already have credit and want to level up? Try these:

⬆️ Request a Credit Limit Increase

If you’ve been paying on time, your issuer may raise your limit—improving utilization as long as you don’t add new debt.

🧐 Check Your Credit Report Regularly

Review your reports for free at AnnualCreditReport.com or check your score in the Honor app (updated quarterly). Dispute any errors you find.

🧩 Diversify Your Credit Mix

A mix (e.g., a credit card and an auto or installment loan) shows you can handle different types of credit. Avoid taking on too much at once.

🕰️ Keep Old Accounts Open

Older accounts help your average age of credit. Use rarely-used cards occasionally so they’re not closed for inactivity.

Common Credit Mistakes to Avoid

❌ Missing Payments

Even one 30-day late payment can stay on your report for up to 7 years. If you miss one, contact your lender quickly—they may waive a fee and help limit the impact.

❌ Applying for Too Many Cards at Once

Each application triggers a hard inquiry, which can temporarily ding your score. Space out applications to avoid looking risky.

😟 How to Recover from Bad Credit

Don’t Panic—You Can Rebuild!

Focus on on-time payments and paying down balances. Consider transferring high-interest balances to a lower-rate card—just confirm the new rate and any fees. Learn how Honor can help with a balance transfer.

Final Words: Be Patient, Stay Consistent

• Good credit takes time—this is a marathon, not a sprint.
• Celebrate the little wins!
• Check your credit score today and see where you stand.