You might be wondering how to build credit without a credit card. Here's Bankrate's guide. For more information about Secured cards or retail credit cards, read on. Make sure to make your payments on time. Then, you'll be well on your way to building good credit. It's not difficult. It's just a matter of time. But it is well worth the effort.
Bankrate's Guide to Building Credit Without a Credit Card
Even if you do not want to apply, you can still begin building credit without a credit score. Credit cards are the fastest way to improve your financial standing. A mere 40% of Americans have a score below 700. If you have already maxed out all your credit cards, you might not be able to get new credit.
Secured Cards
The reason to consider a secured card as a way to build your credit is that you can use it to make regular payments and improve your credit score. Secured credit cards report monthly credit bureau payments. Secured cards don't require an initial deposit. They function just like regular credit cards and have a revolving line credit that replenishes itself as you make repayments.
Retail credit cards
A store credit card can be a great option for those with poor or no credit. The cards are approved quickly and can be used to make purchases in store or online. Some store credit card are part of the payment network so you can use them at any retailer. A store card can help you build your credit score and provide great benefits and rewards. However, before you apply for a credit card at a store, consider how you will use it.
Paying on time
Building good credit with a credit card is important, but it is not the only option. Although all credit card payments will count towards your credit rating, there are many other ways to increase your credit score. Good credit can be built by becoming an authorized user on another person's credit cards. It's also possible to request an alternate payment history, such rent or cell phone bill, to be included in your credit reports.
Credit limit increases
Although most credit card companies pull your credit reports when you request credit limit increases, not all of them do. The request will not have any negative impact on your credit score. A higher limit may have some benefits but you need to think about whether you are able make all your payments and pay your new card off in full each month. A higher credit limit can also negatively impact your credit score if you have to borrow money for large expenses or refinance debt.