How To Build Credit Without A Credit Card In 2019? (4 Insider Tips)
It seems like; some people can make things much more complicated than they need to be when they try explaining something as simple as, how to build credit without a credit card in 2019.
I'm not going to confuse you with funny terms or try and explain how your credit score is calculated.
My goal is to simply explain my top four insider tips and give you the knowledge to make an informed decision.
Regardless of your credit score, there is four simple to understand steps you can take to improve your credit today.
If you give me just a couple of minutes I will be able to tell you about the tools you need to increase your credit score possibly as much as 100 points in the next 90 days without a credit card.
We will discuss four ways to build your credit by becoming an authorized user or obtaining a tradeline, the best store catalog card for you, how to make your rent payments work for you, and our #1 top recommended FICO score builder... you are going to have to read the article to find out our best tip!
#1 Become An Authorized User Or Purchase A Tradeline
To become an authorized user usually, a family member will add you to their credit card as an authorized user on their account.
Generally, there is no cost to add an authorized user to a credit card, and there will be no credit check or hard inquiries to your credit report.
The account information will appear on your credit report including the payment history, the length of time the account was opened and the additional revolving credit increase.
Together, these reporting categories compromise the main responsible credit building actions the three major bureaus want to see and should increase your credit score.
However, there are risks of being added as an authorized user to a family members credit card.
If they max out their credit card or if they make late payments on their credit card it will negatively affect your credit.
That’s why many people choose to purchase a Tradeline instead.
Tradelines are credit cards owned by people who follow strict guidelines of minimal use and on time payments to qualify to be your authorized user Daddy.
When you purchase a Tradeline, you get to choose the age of the account and the credit limit of the credit card.
You don’t have to worry if Mom is going to max out the credit card the next time she goes to Costco or if she’ll choose to pay your brother's doctor bills over making the credit card payment on time.
With a Tradeline, you choose precisely what benefits you want to add to your credit report and watch your standing grow without a credit card.
#2 Best Store Catalog Card in 2019
Another great way to build your credit without a credit card is getting a store catalog card.
You can only use your credit to purchase items from their online store which has 10’s of thousands of items.
I qualified for a $1,000 credit line with Fingerhut when I had a credit score in the high 500’s, even if you have a much lower credit score they have a FreshStart program for people with the absolute lowest scores.
#3 Get Credit For Your Rental Payments
Did you know that landlord’s and property managers DO NOT report your rental payments to the credit bureaus?
That means you are not getting any credit for those monthly rental payments.
A great way to build credit is to hire a rent reporting company like Rent Reporting Team to make sure you get proper credit for every payment.
You’ll have the option for them to go back and report a year or two of previous rental payments along with keeping current with your monthlies to the credit bureaus.
Rent reporting is really inexpensive and an easy step to take to improve your financial clout without a credit card.
#4 Credit Builder Loans Can Give You A Huge Credit Score Increase
Self Lender was the first to offer Credit Builder Loans (CBL) online to all of the United States making them accessible to anyone looking to grow their financial might.
A credit builder loan works a bit differently, in that, you will choose a loan amount between $500 and $2000 which will be set aside in an FDIC insured CD.
You will make payments on that loan for the agreed upon terms, and at the end of making all of the payments, you will receive the entire loan amount with some interest.
Self Lender will report this new loan to the credit bureaus along with your monthly payments.
A credit builder loan is the best way to build your credit without a credit card!
Hopefully, you found these four steps on how to improve your credit without a credit card in 2019 helpful.
All of them individually will increase your credit score.
I know I saw over a 100 point increase in the first 90 days by implementing these four steps.
Please follow the links within to learn more or click on an orange button to purchase a credit building tool today!
If interested you can read more about my story... Mark's Journey To A 700 Credit Score.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.
Mark B. Huntley, a personal finance writer who has contributed to such publications as Forbes, is a former finance and consumer advocates attorney who lost everything in the real estate crash in the late 2000s. Credit Knocks was inspired by the trials of his credit building experience and the desire to help others understand the easy steps necessary to improve one’s credit score.