Can I improve my credit score without credit cards?
August 27th, 2010 by Guest
I recently paid an old debt of $900 and I am now debt-free. However, my credit score is only 550 due to financial problems over the past few years. I really need to build my credit so I can buy a car soon. I would rather not get a credit card to build my credit. What are some other ways to build credit?
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The only way to improve your score is to establish a "good" new history of credit use – That basically means either credit cards or installment loans of some type.
Establish positive credit lines. Utilities, cell phones, etc will all help your rating.
The only other real options are:
Credit card
line of credit
auto loan
mortgage loan
Bottom line, credit cards are the easiest to get. Credit cards are useful in rebuilding your credit because a banker can see how you are managing your available balance- that is, if you have a $2000 credit limit, is your balance managed well, or do you owe $1997 on it.
Great question!
Here’s a better idea. Instead of focusing your efforts on how to attain a higher credit score, why not ask the question that wealthy people ask themselves, "How can I build my net worth?"
Have you ever noticed that so many people in this country have plenty of credit cards and car payments, but don’t have any actual money? That’s because they are sending every dime they make to creditors. People with high net worths avoid credit cards and expensive car payments.
Building wealth is not that hard and it gives you peace of mind when emergencies pop up.
Check out these two great links from financial adviser Dave Ramsey for more information!! Good luck in your financial future!!
http://www.youtube.com/watch?v=iIgLyl66QxQ
http://www.cbsnews.com/stories/2005/10/18/earlyshow/living/money/main951008.shtml
A few of the easiest sources of credit are:
furniture and appliance rental stores – many don’t check credit but most will report credit, and usually you can rent to own so you’re not just throwing money away.
in-store credit cards – use these to make your regular purchases (soap, cosmetics, paper products, pet food, etc…) and pay in full every month. Don’t be tempted to buy unnecessary items like DVDs – they may be cheap but it adds up quickly and before you know it you can’t afford your monthly charges.
It will still take at least a year of paying these bills and your utilities on time every month before you see any real improvement in your credit score. Hope this helps and good luck.
Of course it is helpful and interesting information about credit score.
The fastest way to increase your credit score is to add your credit to someone’s credit account who is in a need of it.
Thanks so much for sharing some interesting tips to improve credit score. Glad to have read over this one; be back for more readings.
If not credit cards, you could probably try taking out a personal loan from your bank. Ultimately, you want your credit report to show you are responsible with your money, so any new line of credit that is kept in check will boost your rating. Bank loans, department store cards, or other revolving bills (like a cell phone bill) can take care of that.