Your credit score is an important factor when making major financial decisions. This is because your credit score determines your eligibility for loans of all types. This includes mortgages, car loans, and more. Although credit cards are the most common way to increase your credit score, there are still plenty of ways of building credit without a credit card.

1. Become an Authorized User

The first way of building credit is to become an authorized user on someone else’s account. Becoming an authorized user can increase your credit score when financial responsibility is demonstrated on the account. This means when the bills are paid on time for the account, your credit score will see the positive impact. It is also important to note that negative impacts due to becoming and authorized user are also possible. For this reason, it is important to make sure that the account you are listed as an authorized user on belongs to a responsible family member or friend.

2. Apply for a Credit Builder Loan

Another way to build your credit without a credit card is with a credit builder loan. A credit builder loan is when a lender secures an amount of money for you while you make monthly payments. Once you’ve paid the full amount of the loan, the lender gives you the funds that we’re secured, and reports your payment to credit bureaus.

3. Report Rent Payments

Your monthly rent payments can significantly impact your credit score if reported to the credit bureaus. Services like RentTrack allow you to report your rent payments, turning your timely rent payments into positive credit history. This method can be particularly effective if you have a long history of on-time rent payments.

4. Use a Secured Loan

A secured loan is another way of building your credit without having to be approved for a credit card. A secured loan requires collateral, such as a savings account or a certificate of deposit (CD). Secured loans are easier to qualify for because you provide lenders with an added guarantee in the form of collateral. With a secured loan, your credit score will improve, provided the lender reports your activity to the credit bureaus.

5. Add Utility and Phone Bills to Your Credit Report

Typically, utility and phone bill payments don’t impact your credit score. However, with services like Experian Boost, you can add these payments to your credit report. By linking your bank account, Experian Boost identifies on-time payments for utility, phone, and streaming services and adds them to your Experian credit report. This can result in a higher credit score, especially for those with limited credit history.

6. Use a Personal Loan

Taking out a personal loan is another good way to demonstrate financial responsibility. Having a personal loan will allow you to make regular payments. Making these payments on time will demonstrate financial responsibility. This financial responsibility will reflect on your credit score, making it easier to secure loans in the future.

7. Keep Existing Accounts in Good Standing

One of easiest ways to build your credit score is to tend to the accounts that you already have opened. Making your car payment, mortgage, and loan payments on time will go a long way towards improving your credit score. If you current have accounts open, be sure to make your monthly payments on time.

8. Monitor Your Credit Report

Regularly checking your credit report is crucial for building and maintaining good credit. You can obtain a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once a year through AnnualCreditReport.com. Reviewing your credit report helps you identify errors or discrepancies that could negatively impact your credit score. If you find any errors, dispute them with the credit bureau to have them corrected.

9. Pay All Your Bills on Time

While this might seem obvious, it’s worth emphasizing that paying all your bills on time is fundamental to building good credit. This includes not only loans and rent but also utilities, phone bills, and any other recurring payments. Late payments can significantly damage your credit score, so it’s essential to stay on top of your payment schedules.

10. Build Credit with a Co-signer

If you’re struggling to qualify for loans on your own, having a co-signer with good credit can help. A co-signer agrees to take responsibility for the loan if you fail to make payments. This reduces the lender’s risk and can help you secure a loan that you might not qualify for on your own. As you make on-time payments, your credit score will improve.

Conclusion: Take Control of Your Credit Journey

If your looking for alternative ways to build your credit score, WBC consulting is here to help. Our expert team can walk you though the process of increasing your credit score. Like most things in life, expert guidance can help speed up your results. Book a free consultation today!