It's possible that you might be curious about how to build credit, without using a credit 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. It is possible. It just takes time. But it's well worth the effort.
Bankrate's guide to credit building without a credit card
You don't have to apply for credit cards if you aren't interested. However, it is possible to build a positive credit record without having to establish credit scores. Credit cards are the best way to improve financial status. A mere 40% of Americans have a score below 700. This means that you may have trouble securing new credit if you've already maxed out your current cards.
Secured cards
As a way of building your credit, a secured credit card can be used to make regular payments and improve credit scores. Secured credit cards report monthly credit bureau payments. You don't need to pay an initial deposit for a secured credit card. They work like a credit card and come with a revolving loan that you can replenish as you make payment.
Retail credit cards
People with poor credit or no credit should consider applying for a credit card at a local store. These cards can be used online or in-store and are usually approved within minutes. Some store credit cards are part a payment network that allows you to use them at any retail location. These cards can be a great way to rebuild your credit, and offer many benefits and rewards. However, before you apply for a credit card at a store, consider how you will use it.
Making timely payments
While credit cards can be a great way to build credit, they are not the only option. You can raise your credit score by making other payments than credit card payments. 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.
How to increase your credit limit
While most card issuers pull your credit report when you request a credit limit increase, not all of them do. This means that you won't see a change in your credit score if you request an increase to your credit limit. 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. If you need the credit to pay large bills or refinance debts, an increase in credit limits can have negative effects on your credit.