It's possible that you might be curious about how to build credit, without using a credit card. Here's Bankrate's guide. Continue reading for more information about retail credit cards and secured cards. Also, make sure that you pay all your bills on time. Once you do this, you will be on your way building credit. It is possible. It does take 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 best way to improve financial status. 40% of Americans have a credit score less than 700. This means that if you already have a lot of credit, you may have difficulty getting new credit.
Secured cards
Consider a secured card to help build your credit. Secured credit card reports your monthly payments to the credit bureaus. 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
A store credit card can be a great option for those with poor or no credit. The cards are typically approved in minutes and can be used for purchases at the store or online. Some store credit accounts are part the payment network and can be used at any retailer. 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
Building good credit with a credit card is important, but it is not the only option. You can raise your credit score by making other payments than credit card payments. Being an authorized credit card user is a great way to build your credit.
How to increase your credit limit
While most card issuers pull your credit report when you request a credit limit increase, not all of them do. This means that your credit score will not be affected by the request. While getting a higher limit has its benefits, you should consider whether you can make all of your payments and pay off your new card in full 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.