Improve Credit Score Without Credit Cards
Improving credit score from the start is never been so easy. A credit card is one of a great way to support you. Starting from no credit to bad credit make it good and strong. That will be the strongest support for you when you apply for a loan.
Application for personal loans, car loans, mortgages. You must require a good credit history. May you find a few options where it’s not needed. But, at the end of the day, you are paying high-interest rates. Your APR rates will be high and you are paying more.
Guideline for personal loans – How much personal loan can I get
Having a good credit score can give you so many advantages. You can apply for any loan from any lender. As they can trust you as a reputed borrower. Lenders will be offering you with lowest APR rates.
But how can I improve my credit score without a credit card?
Checklist to improve credit score:
Pay easy monthly installments on time. If you keep paying every month. It will simply boost your credit score history. that can be critical of five factors that make entry to determining your score. Consider the credit utilization ratio will decrease using a credit card. The second most valuable component for the credit history.
Remember when you start using a credit card. You have the freedom to spend extra money. But, it’s not from your own pocket. You are basically taking a loan from a bank. So making a budget spending can be a useful plan. can help you control your financial situation.
Considering the past can give us a good example. A survey took place in late 2016. Every single American family was carrying near about $16,000 in credit card debt.
Plan 1: Pay monthly dues on time
We have bills every month. Such as Utility bills, student loan bill, house rent and rest. Pay each of them on a timely manner. That way you will spend money on regular basis. Paying back to the bank on time. That can boost your payment history.
A reminder is a sold way that can help you out. Make a list of the bills and previous records. Create a calendar reminder based on the list. So, in future, you won’t miss any payment dates.
Plan 2: Set Autopay for payments
Autopay can be a solid bulletproof option for you. Most of the banks will accept autopay for all your dues. The reason to set auto is you will be paying on time. Sometimes if you miss any payment manually. Get ready for a penalty and higher percentage of fine every time.
If you have a good income scale with consistency. Autopay will the best option for you. As it will simply pay off the bills from the list. No need for any reminders, and blaming your self.
Plan 3: Credit builder loans
A credit builder loan can also help you to boost your credit history. Some credit unions and banks do offer such. Even with bad credit score, you can apply for the loan. The process is very simple and easy. Designed for the new to credit and bad credit score. As you are taking a loan you must remember. You have to pay it back.
What is a credit builder loan? Credit builder loan is designed to improve credit score for the people with no or lower credit history. The borrowing money will be kept in a bank account. When you make your payments your lender is assured about the refund. As you have already scheduled to pay back on time. The bank will report your history to credit bureaus. That will eventually improve your score.
Plan 4: Reporting your rent payments on time
You need to pay your rent every month. As consider that you become habituated. Why not plan for it to be on your side? There are few companies offering rent reporting services for you. You can use RentTrack and RentalKharma services. That will simply boost your score by adding rent payments history to credit record.
The key to achieving a successful credit history is to build up a strong pattern of paying bills and rent on times. You don’t need to use a credit card. Spend without control and later suffer. Credit Card is someway good and sometimes a headache. When you spend out of your budget. Consider extra headache of penalties and get in bad credit holder list.
As you know improving credit history is not that easy. But, having a good plan can actually help you improve.