Perhaps you are wondering how to build credit with no credit card. Here's Bankrate's guide. Learn more about secured cards and retail credit card, and make sure that all payments are made on time. You'll soon be able to build good credit. Don't worry, it's not impossible. It does take time. But it's well worth the effort.
Bankrate's guide to credit building without a credit card
You don't have to apply for credit cards if you aren't interested. However, it is possible to build a positive credit record without having to establish credit scores. Credit cards offer the most direct route to improving your financial situation. Only 40% of Americans have scores below 700 credit. If your credit score is below 700, it could make it difficult to secure new credit.
Secured cards
A secured credit card is a great way to improve your credit score and make regular payments. Secured credit credit cards report your credit bureaus each month about your payments. You don't need to pay an initial deposit for a secured credit card. They work the same as a regular credit card but with a revolving credit that refills as you pay.
Retail credit cards
A store credit card can be a great option for those with poor or no credit. The cards can be used in stores or online and approved usually within minutes. Some store credit cards are part a payment network that allows you to use them at any retail location. Store cards can help you rebuild your credit and can offer great rewards and benefits. Be sure to think about how you'll use the store credit card before you apply.
Paying on time
Building good credit with a credit card is important, but it is not the only option. You can raise your credit score by making other payments than credit card payments. Being an authorized credit card user is a great way to build your credit.
Get a credit limit raise
Most card issuers will pull your credit report when you request an increase in credit limit. However, not all do. The request you make won't have a negative impact on credit scores. Although a higher credit limit can have its advantages, it is important to consider whether you are able to make all your monthly payments and fully pay off your new card each month. An increased limit will also have an adverse effect on your credit if you need to use the credit for large emergency expenses or refinance your debt, both of which may affect your score.