How to Build Credit with Credit Cards

There are a multitude of ways to build credit without credit cards. The most common among these include utilizing credit builder loans, taking out a secured loan, becoming an authorized user on revolving lines of credit, using a co-signer, or utilizing Experian boost and other self-reporting mechanisms.

Self-Reporting to Credit Bureaus

Experian boost allows consumers to reflect on time payments made for utilities like your cell phone bill and electric bill to be reported on your credit report.There are also rent payment reporting services which will allow this to show up on your credit history. Other credit bureaus may also offer similar services in which you can self-report paid Rent, paid utility bills, etc. These services are like extra credit homework. They aren’t required but they’ll help your credit score if that’s something you’re looking to improve.

The Most Uncommonly Cited Ways to Build Credit

Believe it or not, there is credit without credit cards. Credit Cards are just a small segment of the total borrowing and credit system in the United States. So what else is there?

Well, you can get a line of a credit directly from your bank. Whether it is a secured or unsecured line of credit, this is most often the least cited way to build credit without a credit card. If you go directly to your personal bank and ask for a line of credit in person, you are a lot more likely to get one. This is especially true if you have a good relationship with them and maintain a decent amount of savings.

Paying down federal student loan payments. Paying down student loans is often also overlooked as a way to increase your credit worthiness. Federal student loans are reported on your credit report and eliminating what might be smaller loans (for some) can provide a significant boost to your credit score.

Get a secured line of credit against the balance in your bank checking or savings account. Again, going to your bank directly is one of the best bets here. This is not a very traditional way to build credit but it’s an option that should be available granted you have the cash to secure the line of credit with.

Getting a credit builder loan. These loans are only loans in the traditional sense, but their main goal is simply to boost your credit and diversify your credit portfolio. The difference is, you’re not borrowing money to borrow money, you’re borrowing money to improve your credit.

Life Without Credit Cards

Credit cards make our lives easier in a sense since they do act as a buffer when making payments. However, there can be life without credit cards and you technically don’t need credit cards to build credit. There are various ways to build credit but usually your best bet is by using secured debt. Secured debt options are essentially risk free for most lenders and are viewed upon very favorable in terms of building credit worthiness.