Which of these is NOT a good strategy for a young adult to build credit?

Taking out a payday loan is not a good strategy for building credit, primarily because payday loans often come with extremely high interest rates and fees, which can lead to a cycle of debt rather than helping to establish a positive credit history. Additionally, payday loans are typically not reported to credit bureaus, meaning they do not contribute to building credit scores effectively.

On the other hand, getting a secured credit card, being an authorized user on someone else's account, and using a credit card responsibly are all effective strategies for young adults. A secured credit card requires a cash deposit which acts as collateral, making it easier for those with no or limited credit history to obtain. Being an authorized user allows one to benefit from an existing account holder's good credit practices, and responsible use of a credit card demonstrates financial accountability, positively impacting a credit score. These methods are structured to promote healthy credit-building habits while minimizing the risk of falling into a debt trap.