Ways To Improve Your Credit Without Credit Cards

by Pam on October 13, 2013

ways to increase your credit score without a credit cardDid you know that there are ways to improve your credit without the use of credit cards? Most people don’t realize this and because of that they put themselves at risk by getting multiple credit cards that they know they should not have. What you need to understand is that credit cards can often be a problem, not a solution, if they aren’t being used properly.

So, what is the best way to improve your credit without credit cards?

Get a secured loan.

Well, the best way to improve your credit without credit cards is to get a secured loan. What is a secured loan? A secured loan is one where you are backing the loan with some type of collateral. For example, a car loan would be secured, a home loan would be secured as well and a recreational vehicle loan would be secured too. The reason these are better is because you get a better rate and they don’t let you spend more on them once you have received them. Unlike credit cards, these types of loans are set, so you know exactly what you will be paying and when it will be paid off.

Keep your job.

Another great way to improve your credit is to hold a good job for a long time. Most people think that their job has no bearing on how good their credit is and that is not entirely true. The longer you hold down a job, the higher your credit score will go. Just keep in mind that there are several factors in how your credit score is determined and although it is not recorded, this is believed to be one of the smallest factors there are.

Join existing accounts.

If you need another way to increase your credit score, then you can always get your name put on somebody else’s accounts. For example, if your spouse has a credit card or car loan, then ask them if they can put you on it. The reason for doing this is so that you get the value of the additional account without having to go through the entire process of getting a new account and not having it worth as much.

Pay your bills.

Paying your bills on time is very important for increasing your credit score.  You may not realize it, but late payments on bills show up on your credit report, resulting in lowering your score.  As long as you pay your bills on time, you will be on the way towards building a solid credit score.

It is important that you understand that improving your credit is not an overnight thing. It does take some time and if you do it all right you will see just how high it can go. Don’t think that your actions don’t affect your credit because they most certainly do as you can see above.

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