Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

How to Build Credit Without a Credit Card

The world has fallen in love with plastic money and credit cards have become a norm, however, there are still a few who want to live without the hassles of a variable APR and monthly payments of a credit card!

The Credit Score Dilemma!

A good credit score puts you in the good books of financial institutions. Credit cards have always been looked at as the sole reason for influencing the credit score.

The actual factors that impact a credit score aren’t credit cards but what credit cards do! Merely having a credit card and not using it will not give you a better credit score.

 The actual influencers & the value add they bring to the table

  • Types of credits used – 10%
  • New credit enjoyed –10%
  • Length of credit history –15%
  • Amounts owed – 30%
  • Repayment history – 35%

Based on these above given factors it is possible to build credit without a credit card by concentrating on just these aspects.

Know where you stand

In order to increase your credit score, you should first know what your current credit score is. It is advised that you check your credit score before starting the credit building exercise. There are special reporting agencies and sources that will help get you a copy of your credit report. Apart from recognized agencies, there are few free online sources that can come to your aid as well.

How to Improve Credit Without a Credit Card

There are other ways and means by which you can increase your credit score. Here we will look at the options.

Apply for a Bank or Credit Union Loan

As mentioned above, credits and repayments help boost credit scores. The best choice is to apply for a loan in the bank where you have your checking account. If your checking account has been in existence for more than 2 years you can even request credit builder loans. Credit Unions too function on similar lines.

Repayment of Student Loans

If you had procured a student loan for your studies, the best way to start improvising your credit score is to start repaying those loans. Making on time payments will help you significantly while on the other hand missing a student loan can leave a dent on the credit score.

Become an Authorized User of a Friend’s or Family Member’s Account

If a friend or a family member has been maintaining a high credit score, you can request them to make you an authorized user. This will help you get a credit card based on the other account. When the primary cardholder uses their card, manages the account responsibly and reports about the authorized user to the credit bureaus, it will help improve your credit score.

Have a Word with Your Utility Providers

Most utility providers like internet, cable TV, gas, electricity, etc. often highlight only defaulters and do not mention those who are prompt with their utility payments. Their word to the credit bureau will put you in their good books.

To the many who keep pondering as to whether is it possible to build credit without credit card, the answer is there for all to see. It is very much possible provided you are dedicated in increasing your credit scores.