3 Ways to Improve Credit Rating Without a Credit Card

Posted by admin on September 5, 2019

Credit ratings are incredibly important; they can mean the difference between walking out the bank empty-handed or with that mortgage you always dreamed of. The issue with credit ratings, however, is that it seems you need a credit card in order to secure one.

Not only is this not the case, but there are plenty of ways of improving your credit score without even needing to take out a credit card. Here are the three best ways to do this. 

Pay Off Debts

If you have any outstanding debts and can afford to pay them off, you should definitely consider it. It proves to the bank that not only are you stable enough to pay back a loan but you have to means to finish off payments as and when. 

This can include many things, from already open and unused credit cards to a loans you’ve already taken out. In fact, taking out a loan in the first place does wonders to your credit rating if you pay it back when you’re supposed to. Any kind of paid always works in your favour. 

Put Your Name on Utility Bills

By putting your name on utility bills, you once again prove your financial stability and transfer to a better rating. This, of course, means that all your bills have to be paid on time for them to count. If you pay all the bills for your household anyway, then this should be no problem.

If you’re living with someone else, however, and they tend to pay the bills, not only will you lift the financial burden off their shoulder somewhat, you could improve your credit score exponentially. 

Buy on Finance

If you plan on buying something that’s fairly pricey, such as a new car or sofa, getting it on finance and paying it off every month can really help improve your credit rating. Like a loan, it’s another kind of debt to pay off which proves your capability of meeting regularly scheduled payments. 

While it may sound strange that you have to put yourself in debt in order to improve your credit rating, being able to pay it off in the first place is the determining factor. As long as you pay on time, then your rating will boost significantly. If not, then expect it to go down.

If you’re in need of a small short-term loan, visit our cost of laon page for more details. 

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