![]() If you have no credit history, it can be hard to get approved for a credit card. How to Build Credit with No Credit Historyįorget whether you do or don't have a credit card, what about how to build credit with no credit history to start with? If you are building your credit from scratch, there are a few things you can do. When you make these payments on time, this can sometimes build your credit, especially if you use Experian Boost. It allows you to use these services on credit and pay that credit later. This type of credit refers to accounts with different service providers like utilities, cable, and cell phone bills. Use Service CreditĪnother way to build credit without using a credit card is to use service credit. All of these bills can help build up your score when you pay bills in full and on time each month. Make sure your bill payments are being counted toward your overall score. Everyone has monthly bills for things like rent, utilities, phone plans, insurance, and more. Pay Bills on TimeĪnother method is to pay your bills on time. Make those loan payments on time and make sure that positive payment history is added to your credit reporting history to positively impact your overall credit score. Installment loans, personal loans, and title loans are some examples of loans that can sometimes use installment payments, where as payday loans are typically paid at once. This type of credit is borrowed all at once, and then repaid over a period of time through regularly scheduled payments. ![]() Installment credit is a type of credit that gives borrowers a fixed amount of money to use over during a specific period of time. Instead of receiving the loan money and then paying that money back, the borrower will pay the loan amount first, and receive the loan money at the end. This type of loan is different from traditional loans. If you have little to no credit, then you might benefit from a credit builder loan. There are many different types of credit you can use instead. Luckily, you don't have to have a credit card to build credit. One reason to avoid credit cards is if you have a hard time sticking to a budget and not overspending. Many people don't like using credit cards. There are also methods for how to build credit WITHOUT a credit card using different types of credit. Keep a Low Credit Utilization RateĪ credit utilization rate is your total credit used divided by your total available credit. This will help make sure you can aways pay off your balance each month. This will help you build credit without accruing too much interest.ĭon't spend money on a credit card that you don't have in your checking account. Pay Off Credit Card Balances QuicklyĪlways make sure you pay off credit card balances each month. ![]() If you are looking for a credit card that is easier to qualify for and can help you build credit, a secured credit card may be right for you. ![]() These types of cards can thus be harder to qualify for. Unsecured credit cards don't have the cardholder pay a deposit to secure the credit limit. This acts like a down payment on this credit line. This type of card has the cardholder pay a cash deposit when they open the account. Applying for a secured credit card can be a great place to start. Research different credit cards and shop around for one that fits your needs and doesn't have an interest rate that's too high. Borrowers can then use that allotted credit amount, pay it back, and still have that same credit limit to borrow from. ![]() This line of credit has a set amount of money you can borrow from. Responsibly using a credit card is one of the ways you can start building a strong credit history. Use Revolving CreditĪnother term for the type of credit used in credit cards is revolving credit. First, let's go over how to build credit WITH a credit card. There are many ways to build credit with or without a credit card. ![]()
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