Most people think that the only way to build a credit record is by owning a credit card. Want to know a secret? It’s actually possible to build your credit without even owning a credit card. Let us tell you how.
Through Property Rent
Renting a property such as an apartment or office unit under your name can help you build your credit score. Keep you name under the rental agreement, and ask the utility providers for the rental property for a payment report during your tenancy. This is important because a record of timely payments indicate you being a good payer.
Through Store/Secured Credit
A store credit or secured credit card is different from a regular prepaid card or credit card, because it is backed by a cash deposit. It can only be used for small consumer purchases in stores. You can get access to a store credit if you are a regular at a store. The store can then issue a report of your store credit history.
A credit score can be built through utility bills as well, just make sure that at least one of the utility bills are in your name. Keep a good habit to always settle your utility bills on time, so that you can have a good credit standing with your utility providers.
Through Personal Bank Loan
Whenever you apply for a car loan or house loan, you are entitled to a credit report from the creditor or bank. They can help you establish your credit without you using a credit card as long as you do good with payments.
Through On-Time Payments
A good credit score can only be achieved when you always pay every financial obligation that you have on time. To do this, you have to make sure that you have enough disposable income to manage your bills and payments, which would lead us to the next point…
Through Steady Income
Having a steady income indicates healthy finances. It may not necessarily be about credit, but with such income, it means that you can afford to pay anything you need to pay in the future in timely manners.
Through Bank Account
In most instances, you can only be eligible to apply for a loan when you can back it up with a healthy bank account. Banks normally accept personal loans from their existing depositors.