Paper No Plastic: Four Effective Ways to Improve Your Credit Score without a Credit Card

If you want to build your credit and improve your score, you have to apply for a credit card. This principle has been engraved in the minds of consumers for years.
However, recent studies and reports have proven that it is actually a major misconception that is not true at all. While it is true that credit cards can help you to build credit and improve your score, there are several effective ways to achieve the same goal without them.
Register a Household Utility Bill in Your Name
In most cases, utility companies and phone service providers would only send a report to the three major credit bureaus on your behalf once the account had been sent to collections due to a negative payment history or outstanding balance.
This is no longer the case since many different providers and utility companies throughout the country have started to report positive payment history to all three bureaus as well in order to potentially improve the credit history and scores of their customers.
By taking advantage of this provision, you could very well be satisfied with your free credit score the next time you obtain it, according to LowCards.com.
Dispute the Errors on Your Credit Report
Make sure that you regularly obtain your credit report in order to dispute any errors or discrepancies that may appear within it. Keep in mind that you don’t need to have a credit card in order to build credit, which is why there are so many people that have credit reports already established in their names without knowing it.
One study shows that 37 percent of U.S. adults have never even obtained their credit scores for one reason or another, according to Statistic Brain.
By having any negative errors or outdated information removed from your credit report, you will be able to effectively increase your free credit score and overall report as a direct result of your efforts.
Open a Checking and Savings Account
It is true that simply opening a banking account will do absolutely nothing for your credit score or credit status in general.
As is the case with most household bills, banks and other financial institutions will only report your history and status to the three major credit bureaus when they have been escalated to collections or charged off. However, opening and managing these accounts accordingly will open more doors of opportunities for you in the future.
Keep in mind that you will be more likely to qualify for credit cards, credit lines and personal loans from your banks after having a lengthy relationship and positive transaction history with them. Even though there is not a direct impact on your credit score or report through your bank, therefore, you will quickly notice that these accounts provide you with the potential opportunities to achieve that goal.
Apply for a Secured Line of Credit
It may not be the most advantageous avenue to take, but applying for a secured line of credit for a personal or even commercial loan is another way to build credit and improve your free credit score much sooner than you might think. When it comes to these particular options, you will have to pay a considerable amount of money upfront as a deposit, which will become your credit limit.
However, the long-term benefits that can be experienced by doing so are well worth it, according to U.S. News. In addition to being able to increase your score, you will also able to improve your chances of qualifying for other financial benefits, incentives and opportunities in the future. The key is to take the necessary steps now to prepare for your financial future later.