5 Ways to Increase Your Credit Score Without a Credit Card
Life happened, your credit score took a major hit and now you don’t know what to do, right? You’ve lived with bad credit for so long and paid the extra expenses that came along with it because you don’t know where to start when it comes to credit repair, am I on the right track?
Well luckily for you, I have good news. There is hope. Without having to open a credit card, there is still hope. I am going to give you 5 ways to repair your credit without a credit card.
Disclaimer: Credit repair and build does take time. Your score will not increase over night but by following the tips that I am listing for you below, you will be well on your way to an 850 in no time!
#1 Take out a small loan with your bank or credit union
It pays to be nice to people, especially the people behind the teller line. Check with a loan specialist to see if you qualify for a small personal loan. I would not suggest anymore that $500.
Once you’ve secured the loan, make repaying it a priority. Set up automatic payments each month so that it is less worry on you in the future. What you don’t see, you will forget about existed. Before you know it, the loan will be paid off in no time and your credit score will increase.
#2 Apply for a Self-Lender Loan
If you do not have a good relationship with your bank, then this is a second option. Apply for a self-lender loan.
Here is how it works…
You will sign up for a free membership that comes with access to your credit score, credit monitoring, and notifications at the click of a mouse. Choose the ‘build your credit and savings’ option and fill out the form attached.
Self-Lender is not like a traditional loan. You do NOT get the money that you get approved for up front. The amount that you are approved for will be held for you in an FDIC insured CD account.
Every month your account will be automatically drafted (no worries, your payments will be super low) and paid towards your loan amount and the interest that the company charges which is 12.65%.
At the end of the year, the CD will unlock, and you will get your money back plus interest, minus a fee. Your credit score will thank you!
#3 Become an Authorized User
A family member or significant other may be willing to add you as an authorized user on their credit card account. You do not need a credit card to become an authorized user. What this means for you is that if the primary on the account has good repayment history then your score will increase!
Ensure before going into this type of agreement that the primary isn’t expecting you to pay anything on their account because technically you won’t be using it. You will only be enjoying the leisure of them making good repayment history for you.
#4 Get Credit for Your Rent
There is a such thing as a rent reporting service. Companies such as Rental Kharma and Rent Track will take your rent history and add it to your credit report. Not every company will consider this type of history reporting but for the ones that do, it can be a door opened towards you getting a small bank loan. Both will help to increase your credit score!
#5 Examine Your Credit Report
You would be surprised to know that the smallest mistakes on your credit report can decrease your score. Things such as multiple names, addresses, or phone numbers can send your score down the drain. Keep track of your score. You are legally entitled to a free credit report once a year. Order yours today at www.annualcreditreport.com. Dispute all errors that you may see.
Note: Disputing on paper is better than disputing online. Yes, it is the old school way of doing things but disputing online will cause you to lose some of your legal rights.
Ultimately, your credit score is your baby. Take care of it and treat it as though it is your child. The higher the score, the better the offers in your future.
Have you been able to increase your score? Share below in the comments.
Be Blessed,
ShaK
