You might be wondering how to build credit without 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. That will put you on the right track to building good credit. Don't worry, it's not impossible. It's just a matter of time. It's worth it.
Bankrate's guide for building credit without a card
Even if you do not want to apply, you can still begin building credit without a credit score. Credit cards offer the most direct route to improving your financial situation. However, 40 percent of Americans have a credit score below 700. If you have already maxed out all your credit cards, you might not be able to get 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. 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
For people with bad credit or no credit, a store credit is a great choice. The cards are typically approved in minutes and can be used for purchases at the store or online. Some store credit cards are part of a payment network, meaning that you can use them at any retailer. These cards can be a great way to rebuild your credit, and offer many benefits and rewards. Before you apply for a store card credit card, think about how it will be used.
Make on-time payments
However, credit cards are not the only option for building good credit. You can raise your credit score by making other payments than credit card payments. 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.
Get a credit limit raise
Although most credit card companies pull your credit reports when you request credit limit increases, not all of them do. This means that the request you make will not have a negative effect on your credit score. Although a higher credit limit can have its advantages, it is important to consider whether you are able to make all your monthly payments and fully pay off your new card each month. You may also experience a decrease in your credit score if your credit limit is increased.