How To Improve Your Credit Card Score Without Having a Credit Card

improve credit score

How To Improve Your Credit Score!

Despite what you might have been led to believe, you do not need a credit card to build your credit. There are plenty of people that have great credit scores and no cards. But be warned that it’s not always as easy to get credit without a card. You have to have a credit history to apply for most major loans. So unless you have a lot of cash at your disposal, you very likely need to apply for a loan to buy a house or a car, and that requires building your credit. But before you go applying for cards, take a moment to consider your options. If you don’t think that you can apply for credit cards without running up a bunch of debt, it’s better to admit that to yourself now and find an alternative manner in which to raise your credit score so that you can have a fulfilling and financially secure future.

Whether you have poor credit or you are trying to build your credit in a way that does not require having a credit card in your name, you will want to research a few different ways you can help to improve your credit score. A card will make it quite easy, but that doesn’t mean it is impossible to raise your credit score without actually having one. We have some financial tips and advice that can make your credit future a little brighter; no credit card applications required to make it happen. Read on to find out how you can build or raise your credit sore without applying for any credit cards.

Open an Account with your Credit Union for a Small Loan

If you want to build or improve your credit score without a credit card, consider opening an account with a credit union and applying for a small loan. We mean really small, like in the low thousands. You can use this loan for whatever you might need, but be sure that you first can afford to take out this loan. The payments you make on this small loan will show up in your credit report. So long as your payments are always on time, you will see that your score will be affected in a positive manner. Do be sure not to pay off this loan all at once, however. You need to have some sort of credit to show that you’re using it wisely, so paying a little more than the minimum for a few months is actually beneficial in this case.

Report your Rent

Did you know that some of the major credit bureaus now report your rent? That’s right; you can now have your credit report influenced by your rent payments, which can help you to raise your credit score. For a long time, this was not possible. Now you can ask that this is done for you so that you can reap the benefits and the rewards of having a rental agreement that you handle with ease and care. It’s a nice way to ensure that you are getting what you want from the rent you’re paying.

Pay Your Bills on Time

It goes without saying that the easiest way to keep your credit score high or to raise it at all is to pay your bills on time. Perhaps you do not consider paying them all on time an issue, but it is. For example, while you might not see your utility bill payments reflected on your credit score, they will be if you don’t pay on time. If they make it to collections, you’ll see that on your credit score and that can cause a lot of financial issues. Go ahead and pay everything on time; it can only help.

Get a Secured Card

This is not the same thing as a regular credit card. This is a card that looks like a credit card and works essentially like a credit card without actually being a credit card. What you have here is a card that has all the benefits of a credit card, such as being reported to the credit bureau, without the dangers of a credit card or the inability to get a card without credit or with bad credit. You will give a credit card company with a secured card a deposit – $200 to $300 minimum but usually as much as you want. The card company takes your money and keeps it, providing you with a credit card that has a limit of what you’ve already given them in your deposit. You will still make monthly payments, but if you decide you cannot pay off the card, the company will merely keep your deposit and move on. In the meantime, however, they are reporting your payments to the credit bureaus, which means good things for your credit score.

Put Household Bills in your Name

Some household bills are now being reported to credit bureaus, which means that they can benefit you when they are in your name. As long as you are paying things on time and in full, you will see that they make your credit report look really good. This is going to help you build your credit score when you need that kind of help, and it can do so without the use of a credit card in the meantime.

Apply for an Installment Loan

A loan like this is different than other loans. Installment loans typically give you a certain amount of money and expect that you pay it back in installments. But the loan is often reported to the credit bureaus, so it can help your credit score. Before you apply for one of these, however, you will want to make sure that you have the cash to pay it off. You will not get the option to pay it off in a different manner, so do not make an effort to apply for something like this unless you can afford it.

Photo illustration by Matt Cardy/Getty Images


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