It's possible that you might be curious about how to build credit, without using 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. Once you do this, you will be on your way building credit. It is possible. It just takes time. But it's well worth the effort.
Bankrate's guide for building credit without a 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 best way to improve financial status. However, 40 percent of Americans have a credit score below 700. If your credit score is below 700, it could make it difficult to secure new credit.
Secured Cards
Secured cards are a good way to build credit. You can use them to make regular monthly payments and increase your credit score. Secured credit cards report your payments to the credit bureaus every month. You don't need to pay an initial deposit for a secured credit card. They work the same as a regular credit card but with a revolving credit that refills as you pay.
Retail credit cards
People with poor credit or no credit should consider applying for a credit card at a local store. The cards are approved quickly and can be used to make purchases in store or online. Some store credit cards are part a payment network that allows you to use them at any retail location. The benefits and rewards that store cards offer can help you rebuild credit. Think about how you will use your store credit card.
Make on-time payments
It is important to have good credit using a credit card, but that isn't the only option. All credit card payments are counted towards your credit score. However, there are other methods to improve your credit score. It is possible to become an authorized user of a credit card owned by another person. You can also request that your credit report include an alternative payment history such as rent or phone bills.
Credit limit increases
Most card issuers will pull your credit report when you request an increase in credit limit. However, not all 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.