You might wonder how to build credit credit without a bank 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. Then, you'll be well on your way to building good credit. Don't worry, it's not impossible. It does take time. It's worth it.
Bankrate's guide to building credit without a credit card
You don't have to apply for credit cards if you aren't interested. However, it is possible to build a positive credit record without having to establish credit scores. Credit cards are the fastest route to financial stability. Only 40% of Americans have scores below 700 credit. If your credit score is below 700, it could make it difficult to secure new credit.
Secured cards
Secured cards are a good way to build credit. You can use them to make regular monthly payments and increase your credit score. Secured credit credit cards report your credit bureaus each month about your payments. You don't need to pay an initial deposit for a secured credit card. They work the same as a regular credit card but with a revolving credit that refills as you pay.
Retail credit cards
People with poor credit or no credit should consider applying for a credit card at a local store. The cards can be used in stores or online and approved usually within minutes. Some store credit cards are part of a payment network, meaning that you can use them at any retailer. The benefits and rewards that store cards offer can help you rebuild credit. Be sure to think about how you'll use the store credit card before you apply.
On-time payments
Although credit cards are important for building credit, it is not the only way to do so. Although all credit card payments will count towards your credit rating, there are many other ways to increase your credit score. Being an authorized credit card user is a great way to build your credit.
Increase your credit limit
Some card issuers pull credit reports from you when you request a credit increase. But not all. This means that you won't see a change in your credit score if you request an increase to your credit limit. 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 the credit to pay large bills or refinance debts, an increase in credit limits can have negative effects on your credit.