Home › Forums › Credit Reports & Scores › How to raise your credit score without a credit card?
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July 3, 2023 at 7:46 pm #8586Geoff MassanekModeratorJuly 5, 2023 at 7:51 pm #8776Team StellarFiKeymaster
There are two ways to understand the phrase in this question, “without a credit card”.Either it could mean that you don’t apply for a new credit card yourself, or you can attain credit without using a credit card. These are some effective ways to build credit using both options.
Get a credit builder loan: Credit builder loans work like a forced savings account. You can apply for a credit builder loan if you are beginning your credit journey or you want to repair your credit score. With a credit builder loan, a set amount (between $500-$1000) is placed in a secured account which is only released to you after you repay the whole amount through fixed monthly payments. These payments are reported to credit bureaus and you get access to the entire amount saved in the secure account. Here, you are not spending any extra money and instead putting money aside as savings while building credit.
Become an authorized user: You can build credit by not applying for a new credit card yourself, but instead by becoming an authorized user on someone else’s card who has a good credit history.
Apply for loans: You can apply for a car loan or personal loan, or repay student loans to build solid credit without a credit card. Just make on-time online payments and you will be able to build good credit.
Rent and other utilities: Paying your rent, internet, cable, etc, can also help boost your credit score. Check with your landlord or telecom provider if they report rent payments to credit bureaus. Not everyone reports rent and telecom bills as credit payments.
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