Sep 09
Start Building Your Credit
September 09, 2021
Some people, including those in young adulthood, prefer to avoid the subject of credit altogether because it seems too complicated for them and they don’t think it’s worth much attention. But the truth is that it should not be postponed. If you’ve never had a credit card or a loan, your credit history is blank, which means there’s no record anywhere that attests to your ability to responsibly manage credit. This may affect you when applying for credit in the future, both for a card or personal loan, and for when you want to buy a car or a home.
You can start to generate credit in these ways:

- Open a deposit account. If you want to obtain a loan or a credit card in the future, you should start by opening a bank account. Although this won’t necessarily help you build credit, having a good relationship with a financial institution could help you get a loan in the future, or even your first credit card. Check the available options and the requirements that you must meet when opening an account at popular.com/en/accounts/

- Apply fora credit card or a loan with collateral. There are credit cards designed to help you build a credit history. Similarly, a loan with collateral can contribute to this purpose. Once you’ve obtained one of these two options, it’s very important that you always make payments on time. For both products, you may need a qualified co-signer. That person will also be responsible for what you request. To apply for a loan at Banco Popular you must be a resident of Puerto Rico and be 21 years of age or older. If you are under 21, you must present an emancipation or marriage certificate. Other requirements may apply depending on the product you are interested in.

- Use your credit card judiciously. To establish good credit, try to use the card in moderation. Use it to pay for only what you can pay off each month. It’s advisable not to use all the available credit, as that will show that you manage your debts responsibly—and that, in turn, will improve your credit rating.

- Order credit reports. There are agencies from which you can order reports of your credit history. The three national companies are Equifax, Experian and TransUnion. After using your credit for six months, check your rating. Review the positive and negative aspects so you can correct anything you’re doing wrong.

- Find other credit products. There are other products that can help you generate a credit history with the support of a qualified co-signer. Our bank officers are ready to assist you.