Perhaps you are wondering how to build credit with no credit card. Here's Bankrate's guide. For more information about Secured cards or retail credit cards, read on. Make sure to make your payments on time. This will help you build credit. It is possible. It's just a matter of time. It's worth it.
Bankrate's guide to building credit without a credit card
A credit card is not necessary to start building credit. Credit cards are the fastest route to financial stability. A mere 40% of Americans have a score below 700. This means that you may have trouble securing new credit if you've already maxed out your current cards.
Secured Cards
The reason to consider a secured card as a way to build your credit is that you can use it to make regular payments and improve your credit score. Secured credit cards report monthly credit bureau payments. Secured cards do not require a deposit. They function just like regular credit cards and have a revolving line credit that replenishes itself as you make repayments.
Retail credit cards
A store credit card can be a great option for those with poor or no credit. These cards can be used online or in-store and are usually approved within minutes. Some store credit cards can be used at any retailer because they are part of a payment system. A store card can help you build your credit score and provide great benefits and rewards. Before you apply for a store card credit card, think about how it will be used.
Making timely payments
However, credit cards are not the only option for building good credit. Credit card payments do count towards your credit score. But there are other ways you can improve your credit score. Being an authorized credit card user is a great way to build your credit.
Get a credit limit raise
Some card issuers pull credit reports from you when you request a credit increase. But not all. The request will not have any negative impact on your credit score. 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.