I am 20 with no credit cards or credit history. I am currently paying back my school loans. Does that work? I want to know what some other ways are to help build my credit WITHOUT credit cards. I am trying to stay out of debt as much as possible. All I have to pay is my car insurance, school loans, and cell phone bills. Any tips/advice? Thanks in advance!|||It is hard to raise a credit score without a credit card or a revolving account (Macy's).
The reason being, you have to build history with responsible credit use. Which is why many say having bad credit is better than having no credit.
You could get a auto loan or a student loan, but those types of loans have very little impact on your credit score.
Also the history will be low. Once the account closes you have nothing else to keep your history going.
It is best to get a couple of credit cards and carry a 15 percent blance or lower. If you cant get approved for a credit card, look into a secured credit card from a large lender. Or you could think about opening a store account.
I know your question was how to without credit cards.... but your FICO will take a hit and tell you the reason is no major Visa/MC/AMEX/Discover open.|||Student loans, secured loan from your bank against a Certificate of Deposit which the bank holds, auto loan, etc, will all build your credit.
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