For one reason or another, some people choose to not use ro don't qualify for credit cards. However, that doesn’t mean you still can’t build credit. Here are some ways that you can build your credit without the use of a credit card.
PERSONAL LOAN
If you don’t have a credit history or you’re looking for a way to improve it, a personal loan may help get you on the right track. Depending on your situation, you may need a co-signer. As you make on-time payments and pay it back in full, you will start building credit. Make sure you use this money wisely and don’t fall into a debt trap.
RENT PAYMENT
Making consistent, on-time rent payments is a way that you can build your credit. If your current landlord does not report these on-time payments, you can reach out yourself and have it tracked. Make sure you never miss a payment if going this route as it will damage your credit score.
PAY DOWN DEBT
Come up with a plan to eliminate the debt you already have. One aspect of your credit score is your credit utilization or how your current debt is distributed. Keeping this low will help build and repair your credit score.
CREDIT BUILDER LOANS
These types of loans are designed specifically for people who are looking for methods to build their credit. With this type of loan, you place the required amount of money into a CD or Savings account for a set period of time. This collateral is then held until you pay off your loan. Once the loan is paid off, you will have access to the funds set aside at the beginning in addition to any interest the funds earned.
