Disclaimer: The following is a sponsored post by Lexington Law. All opinions are 100% my own.
Most people think they need a credit card in order to build credit.
But did you know you don't need a credit card at all to build credit?
There are thousands of people out there that prefer to live without credit cards, which is totally understandable. People tend to spend less when they don't have credit cards (it's so easy to swipe!), therefore they scrap the idea of a credit card altogether.
Below are 10 ways to increase your credit score without a credit card at all!
1. Get credit items removed
Did you know you may have incorrect or outdated items on your credit card?
Did you also know you can potentially get them removed to greatly increase your credit score?
Lexington Law has 10+ years of experience acting as advocates for consumers who need help repairing their credit and making sure they have a fair, accurate, and substantiated credit report.
And if you don't know your credit score, Lexington Law can give you a free credit report summary and credit repair consultation.
Knowing and understanding your credit report can help you figure out what you need to fix or improve.
Lexington Law has helped clients with over 10 million removals in just 2017 alone and has helped clients remove inaccurate and unverifiable items (such as late payments, charge-offs, and more) from their credit score.
Getting false items removed from your credit report can potentially save you thousands of dollars. If your credit score is hurting and it's not your fault, should you be getting the consequences for that? No.
2. Become an authorized user
Do you have a parent who has great credit? If so, you can ask to become an authorized user on their account.
If you do this, make sure the person you are asking has a great responsibility with money.
There is risk involved in doing this as the person on the account could slip on payments and become less responsible with money, hurting you in the process.
It's also crucial that you clarify with the company that they report card activity to you as well, as the authorized user.
You can learn more about how to become an authorized user here.
3. Student loans
If you don't plan on getting a credit card, student loans are a great way to build up that credit.
Once you've graduated, make sure to pay off your student loans on time and responsibly.
And before you ever take out student loans (or any loan for that matter) make sure to only take out the amount you actually need for school.
Student loans can be beneficial sometimes, see? 😉
Did you know credit bureaus can incorporate rent payments into your credit report?
If the information is submitted to them, this is a great way to build credit without changing up anything in your life.
If you pay your landlords electronically, you may be able to request to send that information to credit bureaus.
This is an easy way to build credit since you pay rent no matter what each month.
5. Credit builder loan
A credit builder loan can do exactly what it says, build your credit.
A credit union or another type of financial institution can issue a credit builder loan that's job is to deposit a small amount of money into a secured savings account.
You (the borrower) are in charge of paying the loan back in small installments over time.
These loans typically last up to 2 years. After the loan term is finished, you will receive the loan in total plus any interest accrued.
6. Auto loans
If you're paying off a car, your auto loan can act as proof of your repayment history.
Paying your auto loans on time is incredibly important and gives you the opportunity to increase your credit over the course of the auto loan.
7. Peer to Peer loan
Similar to the credit builder loan, the peer to peer loan are created by investors.
These loans accrue interest and go back to the investor, unlike most credit union credit builder loans.
You can learn more about peer to peer lending here.
Lexington Law has helped hundreds of thousands of clients remove inaccurate and unverifiable items from credit reports such as late payments, collections, charge-offs, and more.
If you need assistance with filing disputes or challenging specific items on your credit report, learn more about Lexington Law here and start getting the help you need today.
In a nutshell:
1. To inrease your credit score, get credit items removed with Lexington Law.
2. Become an authorized user with someone else's credit card.
3. Take advantage of your student loans, which can improve your credit if loans are paid off on time.
4. Your rent can be used as a form of improving credit.
5. Use a credit builder oan which can increase your credit if used responsibily.
6. Auto loans act as a way to improve credit if paid off on time.
7. Use a peer to peer loan to increase credit.
Did you know you can increase your credit score without a credit card?
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