Perhaps you are wondering how to build credit with no credit card. Here's Bankrate's guide. Find out more about Retail credit cards and Secured cards. And make sure to pay your bills on-time. This will help you build credit. It's not difficult. It takes some time. But it is well worth the effort.
Bankrate's Guide to Building Credit Without a Credit Card
Even if you don't want to apply for a card, you can still build a good credit history and build your credit score. Credit cards are the fastest way to improve your financial standing. But, 40% of Americans have credit scores below 700. This means that you may have trouble securing new credit if you've already maxed out your current cards.
Secured card
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 card reports your monthly payments to the credit bureaus. The good thing is that you do not have to pay an initial deposit to get a secured card. They work just like a standard credit card, with a revolving line of credit that replenishes as you make payments.
Retail credit cards
A store credit card can be a great option for those with poor or no credit. The cards are generally approved in minutes and can either be used at the store or online. Some store credit cards can be used at any retailer because they are part of a payment system. Store cards can help you rebuild your credit and can offer great rewards and benefits. Before you apply for a store card credit card, think about how it will be used.
Making timely 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.
Credit limit increases
Although most credit card companies pull your credit reports when you request credit limit increases, not all of them do. The request you make won't have a negative impact on credit scores. 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. 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.