3 Ways to Build Your Credit Score Without Using Your Credit Card

3 Ways to Build Your Credit Score Without Using Your Credit Card
  • Opening Intro -

    If you are looking to start build credit but do not want to get a credit card, do not give up just yet.

    There are many ways to build a credit without using a regular credit card.

-------------------------------------

There are millions of people who have thin credit files which mean that they have little or absolutely no record of using credit. Almost 1/4th of the US citizens do not have enough credit to build a FICO score.

If you are looking to start build credit but do not want to get a credit card, do not give up just yet. There are many ways to build a credit without using a regular credit card. Some of the options include CD loans and various credit builder loans. At the time of building a credit score, you must pay your bills on time and manage your money wisely. In other words, you must have a shining financial behavior.

The 1st point of reference for most of the creditors is the credit report. Some of the most common credit reports include information from the lender about your payments on the car loans, mortgages and any type of student loans. Other activities such as managing a checking account and paying your utility bills may also come under the scanner.

If you are looking to build your credit score without relying on a credit card then here are the options:

1. Secured Loans with Credit Union

Many people have a tendency to overlook the credit unions when at the time of executing financial transactions. However, if you aspire to build your credit without a credit card then this you simply cannot ignore credit unions. They offer secured loans that help you to build on your existing credit.

At the time of availing this type of loan, the customer is expected to turn in a deposit a certain amount of money. This money acts as collateral for the loan. You can then use the loan amount for anything that you may need. As long as you are repaying the balance and pay the installments right on time, this is certainly going to help you build your credit.

2. CD Loans

If you have a certificate of deposit or a savings bank account then the bank may allow you to use that as collateral for the loan.

Some of the banks allow the customer to borrow up to 100% of the amount in the account while other banks may restrict this to 85%. One has to pay a small fee and an interest and the account holder is not allowed to use the savings bank account till the loan is fully repaid. The loan will show up on the credit report as a secured installment loan thereby helping you to build your credit.

3. Be a cosigner

Another effective strategy that you might want to adopt is to become a co-signer. If you co-sign for a loan, your credit will get affected the same way as that of the person who is taking the actual loan. So, if you can choose someone who uses credit wisely then this will definitely boost your credit worthiness in the long run.

So building your credit score without relying on a credit card is not really tough. There are other ways to do it too. We suggest that you share this article on social media sites like Facebook so that your friends too can give their valuable suggestions in this matter and thereby help you build up your credit score.

Credit Management reference:

establishing credit

 
SaleBestseller No. 1
Intelligent Credit Scoring: Building and Implementing Better Credit Risk Scorecards (Wiley and SAS Business Series)
1 Reviews
Bestseller No. 2
How to Edit Your Credit Issues: A Powerful Strategy for Legally Improving Your Credit Score and Building True Wealth
3 Reviews
SaleBestseller No. 3
How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today
21 Reviews
How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today
  • Used Book in Good Condition
  • Jamaine Burrell
  • Atlantic Publishing Group Inc.

Last update on 2017-05-27 / Affiliate links / Images from Amazon Product Advertising API

-------------------------------------------------------------------------------------------------------------

end of post idea

-------------------------------------------------------------------------------------------------------------

Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

Categories: Credit Management

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload CAPTCHA.