Interesting Ways To Build Credit Without Credit Card
Interesting Ways To Build Credit Without Credit Card: A good credit card score is inherently important. This is because the credit card score dictates whether you qualify for a loan or a mortgage or even when you are looking to rent an apartment. This is why the credit card score should be as strong as possible!
Factors affecting the Credit Card score.
Factors affecting the credit card score should always be borne in mind so as to ensure they are not neglected, ultimately leading to a poor credit card score. These are:
- Payment history
- Amounts due or owed
- Length of credit history
- Type of credit used
Building the credit card score.
How to build credit without credit card? Building your credit card score is important. There are some ways to go about this, and some of these have been elaborated below:
- Personal Loan
A personal loan is usually not backed up by collateral and is thus an unsecured loan. This is the reason why higher interest rates are also charged. As long as personal loans are repaid on due time, installments are on time and everything goes smoothly; they can add to your credit score.
- Rent Payments
Often time landlords do communicate data related to rent payments with authorities who are then creating a log which contributes to credit score. However, if your landlord does not pass along this information, there are still ways to ensure that this data adds to your record. There are established credit bureaus where you can voluntarily submit said information and thus help to build up your credit score.
- Federal Student Loans
Any payment that is made in lieu of loan repayment or installments is reported to credit bureaus. Be mindful of any and all loans and their repayments. Federal student loans are a great facility since you don’t need a very strong rating to get one but they do contribute positively to your credit card score.
- Credit Builder Loan
How to build credit without credit card? Well, credit builder loans exist to do just that! These are offered by unions or banks to people who have little to no credit history. The sole purpose of this type of loan is to help build credit score.
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