What is the best way to start building credit?
I am starting fresh with no credit what so ever. Where should I start?
The answer to your question depends on a number of circumstances, but generally speaking, the best way to build credit is to start using credit responsibly. Often, the easiest way to do this is to apply for a credit card.
Depending on your age, income and a number of other factors, this may need to come in the form of a Secured Credit Card. These can generally be acquired through the bank or credit union that you currently use.
If you might qualify for a non-secured credit card, make sure you find the one that's best for you. A great resource to research what card might be best for you is Nerd Wallet. Click on the link, answer the various prompts to determine what might be best or most rewarding for you.
Not to sound like a beer commercial, but the most important piece of my response above is "start using credit responsibly." This means start charging one or two things a month to the card, never spend more than you can afford to pay cash for right now and then pay off the credit card IN FULL at the end of each month.
Open a credit card, use it for a few purchases each month, and then pay it off every month. Credit card companies report to the credit bureaus (whose data is used to calculate your credit score) every month, so the fastest way to be recognized for good use of credit is by prudently using a credit card.
I would say the best way to begin building credit is to start off with a simple credit card that you use for normal expenses that you payoff each month. Think of it like a card that you only use for gas, and then at the end of each month pay it off.