You may have heard through the grapevine that the only way to build credit is by opening your own credit card. That’s not entirely true. Yes — a credit card can help you build credit, but it is also possible to build credit without one. On this blog, I’ll share five strategies for building credit without a card.
STAY CURRENT ON LOAN PAYMENTS If you have a car loan, student loan, or any other loans and the monthly payments are reported to the credit bureaus; be sure to ALWAYS pay on time!
PAYMENT HISTORY IS THE MOST IMPORTANT FACTOR THAT AFFECTS YOUR SCORE!
If you’ve paid late before, don’t sweat it. Paying on time from here on out can help you bounce back.
Eventually, your more current history will matter more than what happened in the past.
BECOME AN AUTHORIZED CREDIT CARD USER If you have a parent, partner, friend, or family member who has excellent credit and payment history, ask if you can piggyback off their credit by becoming an authorized user on their credit card account. As an authorized user, their account and on-time payments may show up on your report, which could help you build credit.
SIGN-UP FOR EXPERIAN BOOST
Do you pay your Netflix, phone, or utility bills on time? Those on-time payments could also help you build credit if you sign up for Experian Boost.
Experian Boost is a FREE service that adds certain on-time subscription and utility payments to your credit report and score.
Just keep in mind that this “boost” would likely only affect your Experian credit score and not your TransUnion and Equifax scores.
USE A CREDIT BUILDER LOAN
A credit builder loan is a loan that you apply for, but you don’t get a lump sum right away. Instead, that lump sum is put into a savings account.
You make payments and those payments are reported to the credit bureaus. At the end of the term, you get the lump sum, and ideally, better credit if you pay on time.
Credit Strong - Credit Builder Savings Account is one company that offers credit builder loans and when you apply there’s no credit check!
CALL IN THE PROS
There’s a lot of variables to consider when building credit.
If you have questions or could benefit from one-on-one guidance, you don’t have to do this alone.
Also, working with a credit repair company could help you build credit faster because you have experts at your disposal.
Ready to build a credit score that you’re proud of? Click the following link to schedule your free financial clarity call! We have a few slots open this week and would like to offer you a free credit analysis as well. Click the following link, select a time that works best for you >> www.lambenterprises.org/book-online
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