What we verified in “Credit from zero: how to start your history in the U.S.”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the CFPB, a credit report is a statement with information about your credit activity and current credit situation: your personal information, your accounts (type, limit, balance, payment history, dates), collection items, public records and the companies that have accessed your report. Lenders use it to decide whether to lend to you and at what rate; other businesses check it before insuring you, renting you a home or providing services, and an employer may see it if you agree. Most people have more than one report, and creditors are not required to report to every credit reporting company.

   Sources 1 · What is a credit report? (last reviewed January 29, 2024): 'A credit report is a statement that has information about your credit activity and current credit situation'; 'Personal information'; 'Credit accounts'; 'Collection items'; 'Public records'; 'Companies that have accessed your credit report'; 'Lenders use these reports to help them decide if they will loan you money, what interest rates they will offer you'; 'If you agree to let an employer look at your credit report'; 'Most people have more than one credit report'; 'Creditors are not required to report to every credit reporting company' · Checked October 17, 2026

2. According to the CFPB, you can get a free copy of your credit report from each of the three nationwide companies (Equifax, Experian and TransUnion) once a week at AnnualCreditReport.com, or by calling (877) 322-8228; you also have the right to one free report from each company every 12 months.

   Sources 2 · How do I get a free copy of my credit reports? (last reviewed October 15, 2026): 'You can get a free copy of your credit report from each of the three major consumer reporting companies (Equifax, Experian and TransUnion) once a week at AnnualCreditReport.com'; 'You also have the right to one free report from each company every 12 months'; 'go to AnnualCreditReport.com or call (877) 322-8228' · Checked October 17, 2026

3. According to the CFPB, a credit score is a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on the information in your credit reports; a mathematical formula called a scoring model creates it. Factors typically considered include your bill-paying history, your current unpaid debt, how much of your available credit you are using and new applications for credit. You do not have just one score: it differs by scoring model, by the source of the data and even by the day it is calculated.

   Sources 3 · What is a credit score? (last reviewed September 2, 2026): 'A credit score is a prediction of your credit behavior, such as how likely you are to pay a loan back on time'; 'called a scoring model'; 'Your bill-paying history'; 'Your current unpaid debt'; 'How much of your available credit you're using'; 'New applications for credit'; 'You do not have just'; 'may differ depending on the scoring model'; 'the source of the data used, and even the day when it was calculated' · Checked October 17, 2026

4. The CFPB recommends paying your loans on time, every time (most credit scores consider repayment history the number one factor), using automatic payments or electronic reminders; not getting close to your credit limit (experts advise keeping your use of credit at no more than 30 percent of your total credit limit); it says you do not need to carry a balance on credit cards to get a good score and that paying off the balance in full each month helps get you the best scores and keeps your interest costs as low as possible; that a long credit history helps; that applying for a lot of credit in a short time may make lenders think you are dealing with financial setbacks; that you should fact-check your credit reports and dispute errors; and that, if you are new to credit, you can consider a product designed to establish credit, such as a secured credit card or a credit builder loan.

   Sources 4 · How do I get and keep a good credit score? (last reviewed December 12, 2024): 'Pay your loans on time, every time'; 'set up automatic payments or electronic reminders'; 'Most credit scores consider repayment history as the number one factor'; 'Experts advise keeping your use of credit at no more than 30 percent of your total credit limit'; 'You don't need to carry a balance on credit cards to get a good score'; 'Paying off the balance in full each month helps get you the best scores and keeps your interest costs as low as possible'; 'A long credit history will help your score'; 'it may appear to lenders that you are dealing with financial setbacks'; 'Fact-check your credit reports'; 'If you are new to credit'; 'such as secured credit cards and credit builder loans' · Checked October 17, 2026

5. According to the CFPB, requesting your own credit report does not hurt your credit score: checking it is not an inquiry about new credit, so it has no effect on your score.

   Sources 5 · Does requesting my credit report hurt my credit score? (last reviewed May 14, 2024): 'No, requesting your credit report does not hurt your credit score'; 'Checking your own credit report is not an inquiry about new credit, so it has no effect on your score' · Checked October 17, 2026

6. According to the CFPB, hard inquiries (often made by lenders after you apply for credit) do impact your score, because most scoring models look at how recently and how frequently you apply for credit, and others who purchase your report can see them; soft inquiries (reviews of existing accounts, prescreened offers, employment screening and your own requests) do not affect your scores and are shown only to you.

   Sources 6 · What is a credit inquiry? (last reviewed September 5, 2025): 'These inquiries will impact your credit score because most credit scoring models look at how recently and how frequently you apply for credit'; 'Hard inquiries can be seen on your report when others purchase your credit report'; 'These will not affect your credit scores'; 'Soft inquiries are shown only to you' · Checked October 17, 2026

7. The CFPB describes three ways to start or rebuild a credit history and suggests asking your bank, credit union or a local nonprofit credit counseling agency about them: a secured credit card (you put in an amount of cash, for example $500, and can spend up to that amount; paying the bill restores your spending amount), a credit builder loan (the money is not for spending: it is held for you as savings while you make small payments, usually over six to 24 months, and at the end you receive the full amount you paid) and a retail or store card with a low limit. Payments are reported to the three nationwide credit reporting companies, which create a credit report for you, and paying on time, every time, can help you build a strong credit history.

   Sources 7 · What are some ways to start or rebuild a good credit history? (last reviewed September 13, 2024): 'Ask your bank, credit union, or local nonprofit credit counseling agency'; 'You put in an amount of cash, for example $500'; 'you restore your spending amount back to the amount you put in'; 'it is held for you as savings'; 'usually over six to 24 months'; 'At the end of that time, you receive the full amount you paid'; 'Retail or store credit cards'; 'The low credit limit means you are not as likely to run up high credit card bills'; 'reported to the three nationwide credit reporting companies, and they create a credit report for you'; 'Paying on time, every time, can help you build a strong credit history' · Checked October 17, 2026

8. According to the CFPB, not all financial products help you build your credit history (with debit or cash you are not borrowing money, and with a prepaid card you spend only what you deposited beforehand): payments with a debit card or cash, prepaid cards, payday loans (even with on-time payments) and 'buy here, pay here' car loans from a used car dealership are typically not reported to the nationwide companies, and those dealers often report only negative information, like late payments.

   Sources 7 · What are some ways to start or rebuild a good credit history?: 'Not all financial products help you build your credit history'; 'you are not borrowing money that you need to repay later'; 'you can spend only the money you deposited beforehand'; 'Typically, payments like these are not reported to the nationwide credit reporting companies'; 'prepaid cards do not help you establish your credit history'; 'Even if you make on-time payments, a payday loan does not help your credit history'; 'car loan at a used car dealership does not help establish your credit history'; 'The dealers often report only negative information' · Checked October 17, 2026

9. According to the CFPB, if you do not qualify for a regular credit card, you can try a secured card: you put an amount equal to your credit limit in an account as a deposit; as you show you can pay on time, your limit may be raised and your deposit may be refunded. Fees and interest rates can be high for secured cards. And some things do not help rebuild your credit: using a debit card or paying cash, using a prepaid card or taking out a payday loan.

   Sources 8 · How to rebuild your credit (last modified June 24, 2025): 'If you do not qualify for a regular credit card, try a secured card'; 'You put an amount equal to your credit limit in an account as a deposit'; 'your credit limit may be raised and you may have your deposit refunded'; 'Fees and interest rates can be high for secured cards'; 'These four things don't help rebuild your credit'; 'Using a debit card or paying cash'; 'Using a prepaid card'; 'Taking out a payday loan' · Checked October 17, 2026

10. According to the CFPB, rebuilding credit takes time and there are no shortcuts or secrets; 'on time' means the payment gets to the company by the day the bill is due, and if you pay by mail you should mail it a few days early; if you pay with a credit card, paying the balance in full each month avoids finance charges; the longer you have credit and pay on time, the more information there is to show you are a good credit risk; and, in general, recent negative information affects your score more than older information.

    Sources 8 · How to rebuild your credit: 'Rebuilding it takes time. There are no shortcuts or secrets'; 'means the payment gets to the company by the day the bill is due'; 'If you pay by mail, put your payment in the mail a few days before it is due'; 'Pay off your balances in full each month to avoid paying finance charges'; 'The longer you have credit and pay on time, the more information there is to show you're a good credit risk'; 'recent negative information has more of an effect on your credit score than older information' · Checked October 17, 2026

11. The CFPB's 'Building credit from scratch' checklist says that starting out in the financial world can be confusing and that building good credit takes time.

    Sources 9 · Building credit from scratch (December 2016), p. 1: 'Starting out in the financial world can be confusing'; 'building good credit takes time' · Checked October 17, 2026

12. According to the CFPB, being an authorized user on a credit card generally does not obligate you to pay the debt, and card issuers usually report authorized users' status to the credit bureaus.

    Sources 10 · I was an authorized user on my deceased relative's credit card account. Am I liable to repay the debt? (last reviewed September 23, 2024): 'being an authorized user generally does not obligate you to pay the debt'; 'Credit card issuers usually report authorized users' · Checked October 17, 2026

13. According to the CFPB, the big three companies (Experian, Equifax and TransUnion) use rental payment and related debt collection information in their reports, each in its own way; positive rental payments can help build your credit: if you want your rent reported, ask your landlord whether they participate in a rental reporting program (often through a rental payment app) and consider any fees charged for the service.

    Sources 11 · Does late rent affect my credit score? (last reviewed December 31, 2024): 'use rental payment and related debt collection information in their credit reports, although the way they handle this information varies'; 'Positive rental payments can help build your credit'; 'ask your landlord if they participate in a rental reporting program (often through a rental payment app)'; 'Be sure to consider any fees that might be charged for these services' · Checked October 17, 2026

14. According to the CFPB, to dispute an error you write to the credit reporting company explaining what is wrong and why, with copies (not originals) of the documents that support you; you can send the letter by certified mail and ask for a return receipt. Also dispute in writing, by certified mail, with the furnisher that reported the item; furnishers generally must investigate and respond within 30 days of receiving the dispute. If the information was wrong or cannot be verified, the furnisher must update or remove it and notify the bureaus; if it confirms the item, you can ask the bureaus to include a statement explaining the dispute in your reports.

    Sources 12 · How do I dispute an error on my credit report? (last reviewed September 2, 2026): 'explain in writing what you think is wrong, why, and include copies of documents that support your dispute'; 'Copies (not originals)'; 'by certified mail and ask for a return receipt'; 'Send disputes to furnishers in writing, using certified mail'; 'Furnishers generally must investigate and respond to your dispute within 30 days'; 'the furnisher must update or remove the information and notify all the credit reporting companies'; 'ask them to include a statement explaining the dispute in your credit reports' · Checked October 17, 2026

15. Under the Fair Credit Reporting Act, when you dispute an item, the consumer reporting agency must conduct a reasonable reinvestigation, free of charge, and finish before the end of the 30-day period that starts when it receives your notice (extendable by up to 15 days if you send relevant information during that period); if the item is found inaccurate, incomplete or unverifiable, the agency must promptly delete or modify it and notify the furnisher.

    Sources 13 · 15 U.S.C. §1681i(a)(1)(A): 'free of charge, conduct a reasonable reinvestigation'; 'before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute'; (a)(1)(B): 'may be extended for not more than 15 additional days'; (a)(5)(A): 'is found to be inaccurate or incomplete or cannot be verified'; 'promptly delete that item of information from the file of the consumer, or modify that item of information'; 'promptly notify the furnisher' · Checked October 17, 2026

16. Under the Fair Credit Reporting Act, anyone who denies you credit or takes another adverse action based on your consumer report must give you notice; disclose the credit score it used, if it used one; give you the name, address and phone number of the agency that furnished the report, with a statement that the agency did not make the decision and cannot give you the reasons; and tell you of your right to a free copy of your report within the 60-day period and to dispute the accuracy of the information.

    Sources 14 · 15 U.S.C. §1681m(a), 'Duties of users taking adverse actions on basis of information contained in consumer reports': 'provide oral, written, or electronic notice of the adverse action to the consumer'; 'a numerical credit score'; 'the name, address, and telephone number of the consumer reporting agency'; 'did not make the decision to take the adverse action and is unable to provide the consumer the specific reasons'; 'an indication of the 60-day period'; 'the accuracy or completeness of any information in a consumer report' · Checked October 17, 2026

17. Under Regulation B (Equal Credit Opportunity Act), a lender must notify you of its decision within 30 days after receiving your completed application; if the decision is adverse, the notice is in writing and gives the specific reasons or tells you of your right to get them if you ask within 60 days.

    Sources 15 · 12 CFR §1002.9(a)(1)(i): '30 days after receiving a completed application'; (a)(2): 'A statement of specific reasons for the action taken'; 'if the statement is requested within 60 days of the creditor's notification' · Checked October 17, 2026

18. The CFPB lists the warning signs of a credit repair scam: the company wants you to pay before it provides any services; claims it can guarantee a specific increase in your credit score or get rid of negative information even if it is accurate and current (no one can); advises you to dispute everything even when it is correct; or tells you not to contact the credit reporting companies. Disputing errors is a free legal right under the Fair Credit Reporting Act and you do not need to pay anyone; if you just signed up for such a service, you can cancel for any reason within three business days at no charge.

    Sources 16 · How can I tell a credit repair scam from a reputable credit counselor? (last reviewed November 7, 2023): 'The company wants you to pay before it provides any services'; 'guarantee a specific increase in your credit score'; 'even if that information is accurate and current. No one can do this'; 'The company advises you to dispute all the information in your credit report, even if it is correct and timely'; 'recommends that you don't contact any of the nationwide credit reporting companies directly'; 'a free legal right available to you under the Fair Credit Reporting Act'; 'within three business days at no charge to you' · Checked October 17, 2026

19. According to the CFPB, your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income, which is generally what you earn before taxes and other deductions; it is one way lenders measure your ability to manage the payments, and different loan products and lenders have different DTI limits.

    Sources 17 · What is a debt-to-income ratio? (last reviewed August 28, 2023): 'Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income'; 'one way lenders measure your ability to manage the monthly payments'; 'Different loan products and lenders will have different DTI limits'; 'before your taxes and other deductions are taken out' · Checked October 17, 2026

20. HUD-approved housing counselors give independent advice on buying a home, renting, defaults and credit issues, often at little or no cost; you can search for one by ZIP code with the CFPB's tool.

    Sources 18 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you'; 'Search by ZIP code' · Checked October 17, 2026