How To Build Your Credit History Without a Credit Card
- Getting an American credit card can be difficult if you do not have immigration status, but you can build a credit history without using a credit card
Step One: Get a secured credit card
- For a secured credit card, the issuer gives you a credit card once you deposit a certain spending limit
- You will need to deposit the money you have into your bank account before getting this card, since this cash will play a role in the spending limit and acts as collateral
- The issuer will verify if you have a good income before they give you a secured credit card
- If you maintain this card, you will be able to build a credit score to get a regular credit card
- Ask the credit card issuer if they are reporting the payment history to at least one credit bureau otherwise, you will not be able to build credit
Step Two: Pay Your Rent on Time
- By paying rent it can help you build credit because your landlord can report your payments to the credit bureaus
- You can also pay your rent through an electronic rent service that reports your payments
- By paying rent and reporting your payments, you can build your credit score
Step Three: Avoid Going Into Debt
- If you fall into debt, it can affect you building your credit score
- Pay your secured credit card bills in full and within the deadline of each month
- If you already have debt, pay off your existing debt as soon as possible
- You can enroll with a professional debt relief company to repay your debts quicker
Step Four: Pay Utility Bills On Time
- To build a good credit record pay all of your utility bills in full and on time
- You can ask the provider of your utilities to report the payment record to the credit bureaus
Step Five: Get a Credit Builder Loan
- Also called savings secured installment loans, these loans help you establish a credit history
- A loan is arranged from the banking partner and they provide the loan to qualified immigrants and people with valid Social Security Numbers
- You build a credit history by making payments on the credit builder loan
Step Six: Try a Credit Card Designed for People New to Credit
- They are several options for new credit cards that immigrants without credit history can apply for