You might wonder how to build credit credit without a bank card. Here's Bankrate's guide. Read on for information on Secured cards and retail credit cards, and make sure you make all of your payments on time. Then, you'll be well on your way to building good credit. Don't worry, it's not impossible. It just takes time. But it is worth it.
Bankrate's guide to credit building without a credit card
If you're not interested in applying for a credit card, you can still start building a positive credit history without a credit score. Credit cards are the fastest route to financial stability. However, 40 percent of Americans have a credit score below 700. This means that you may have trouble securing new credit if you've already maxed out your current cards.
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 send your monthly payments to credit bureaus. You don't need to pay an initial deposit for a secured credit card. They work just like a standard credit card, with a revolving line of credit that replenishes as you make payments.
Retail credit cards
People with poor credit or no credit should consider applying for a credit card at a local store. The cards are typically approved in minutes and can be used for purchases at the 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. But before you apply for a store credit card, think about how you'll use it.
Making timely payments
However, credit cards are not the only option for building good credit. While all credit card payments count towards your credit score, there are other ways to raise your credit score, as well. Becoming an authorized user of another person's credit card is an excellent way to build good credit, as is requesting that an alternate payment history, such as rent or cell phone bills, be included in your credit report.
Getting a credit limit increase
While most card issuers pull your credit report when you request a credit limit increase, not all of them do. The request will not have any negative impact on your credit score. The benefits of a higher limit are great, but it's important to assess whether you have the ability to pay all of your monthly bills and make your payments on time. A higher credit limit can also negatively impact your credit score if you have to borrow money for large expenses or refinance debt.