You might be wondering how to build credit without a credit card. Here's Bankrate's guide. Learn more about secured cards and retail credit card, and make sure that all payments are made on time. That will put you on the right track to building good credit. Don't worry, it's not impossible. It just takes time. But it's well worth the effort.
Bankrate's guide on building credit without a bank 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. But, 40% of Americans have credit scores below 700. If your credit score is below 700, it could make it difficult to secure new credit.
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 report your payments to the credit bureaus every month. A secured card does not require you to make an initial deposit. 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. The cards are generally approved in minutes and can either be used at the store or online. 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.
Paying on time
While credit cards can be a great way to build credit, they are not the only option. Credit card payments do count towards your credit score. But there are other ways you can improve your credit score. 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
Some card issuers pull credit reports from you when you request a credit increase. But not all. This means that your credit score will not be affected by the request. A higher limit may have some benefits but you need to think about whether you are able make all your payments and pay your new card off in full each month. If you need to refinance or use credit for large-scale emergency expenses, an increased credit limit could have a negative effect on your credit score.