Perhaps you are wondering how to build credit with no 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. That will put you on the right track to building good credit. You don't have to do it all. It just takes time. But it is worth it.
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 fastest way to improve your financial standing. Only 40% of Americans have scores below 700 credit. This means you may not be eligible for new credit if your existing cards are exhausted.
Secured Cards
A secured credit card is a great way to improve your credit score and make regular payments. 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 function just like regular credit cards and have a revolving line credit that replenishes itself as you make repayments.
Retail credit cards
Applying for a store credit credit card is an option for people with poor credit. 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. A store card can help you build your credit score and provide great benefits and rewards. Think about how you will use your store credit card.
On-time payments
While credit cards can be a great way to build credit, they are not the only option. While all credit card payments count towards your credit score, there are other ways to raise your credit score, as well. A great way to build credit is to be an authorized user for another person's card. Also, you can request that an alternate payment history (e.g rent, cell phone bills) be added to your credit report.
Get a credit limit raise
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. You should be aware that a higher limit does have its benefits. However, you should also consider whether or not you can afford all the payments and repay your card fully each month. An increased limit will also have an adverse effect on your credit if you need to use the credit for large emergency expenses or refinance your debt, both of which may affect your score.