4 Ways to Boost Your Credit Score Without a Credit Card

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There’s no credit score that’s so low it can’t be boosted. Find out how you can raise yours. 

Whether you’re just starting life as an adult or you’re rebuilding a credit score that’s taken a hit, you may be in the unique position of trying to build (or rebuild) your score without a credit card. While using a credit card of your own and paying it off in full each month is a fast and easy way to build your score, you have plenty of other options. Here are four ways to improve your credit score.

1. Become an authorized user

One way to raise your score is to become an authorized user on the credit card of someone with a strong credit score. This table offers a good sense of what constitutes a high FICO® credit score:

As an authorized user on a credit card, you’ll never actually have to use the card to make a purchase, but your name will be on the account. That means that each time the original credit card holder makes an on-time payment, that payment is reported to credit bureaus under both of your names. Each time positive activity is reported, your credit score is enhanced. While it may take a time to build your score, it will happen.

Who you ask matters. The person you’re hitching your wagon to needs to have a strong credit score — typically in the 700s or better. Becoming an authorized user on the card of someone who does not always pay their bills on time will reflect badly on you.

Making the request of someone you care about may not be easy. One thing that can help is to offer an “end date.” For example, you may ask if you can be an authorized user until your credit score is boosted by a specific amount. Or you may set a time, like 36 months.

2. Speak with your landlord

Overall, it’s estimated that only 15% of tenants have their rent payments reported to credit bureaus. Of those who do, 70% report that their credit score improves dramatically. That’s because each time your landlord reports that you’ve made an on-time payment, your credit score is lifted.

Speak with your landlord or management company to learn if they’re willing to report your payment each month to the credit bureaus.

3. Take out a loan

It’s possible that you can qualify for an auto loan or personal loan, even without a credit card. Even if you don’t need the money for any specific purpose, the idea is to prove to the creditor that you can make payments each month, without fail. Each positive report helps boost your score.

Part of the calculation determining your FICO® Score is called “credit mix.” It’s a review of the different types of credit you carry and how well you’re able to manage each one. Let’s say you have a small personal loan, an auto loan, and a secured credit card. This is a good mix of credit types.

Naturally, you don’t want to hold onto that debt for long. As soon as your credit score improves, it’s time to begin thinking about paying each debt off in full.

4. Think long term

Building a credit score up may take time, but it’s all about making your financial life a little easier in the future. A healthy credit score can help you land a mortgage loan, buy your dream car, or even qualify for a job. How well you manage credit is woven throughout your life.

Still, we humans are an impatient bunch. After all, it only takes detectives about 25 minutes to figure out “who done it” on television, and we’ve grown accustomed to paying someone to create an elaborate coffee drink in three minutes or less.

One thing that may help temper impatience is to look at credit-building as a long-term project. For example, plan to check your credit score once a year and decide how you’re going to celebrate improvements. In other words, go in with the understanding that it could take two or three years to really boost your score.

In the meantime, if you need a card to do things like reserve a rental car or hotel room, one temporary measure is to take out a secured credit card.

Ins and out of a secured credit card

A secured credit card may take a little getting used to, but it is an effective way to build your credit score. Here’s how it works:

You make a minimum deposit. That deposit becomes your credit limit. For example, if you deposit $300, you’ll have access to $300 in credit.Once you’ve paid for something using the secured card, you make an on-time payment like you would with any traditional credit card. And, like with a traditional credit card, the creditor will report the payment to the credit bureau.After several months of making on-time payments, the creditor may offer you an unsecured credit card. The spending limit is likely to be relatively low, but that’s okay because it gives you a chance to further build your credit score over time.

Tip: Before signing up for a secured card, find out about any fees you’re required to pay. Then, compare that card to other secured credit cards to find the best deal.

When it comes to credit scores, there’s good news. There’s no credit score so low that it can’t be improved. As long as you go in with a plan and determination, you can get it done.

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