Is it possible to show good credit without having a credit card?

Ways to build credit without a credit card

You might want to try a co-signed loan,credit-builder loan, or secured loan.

,There are ways to use your rent,utility payments and phone to build credit or you can seek the help of a credit expert (which i recommend is the best,safe and fastest method) like myself to help you build your credit without a credit card.

How often should you use a credit card to build credit

u201cIf you are trying to build credit how often should you use the card?u201d,You can use your credit card as many times as you want.

Just try to keep your utilization rate below 30% and pay your bill on time.

,Hope this helps.

Best to you

How to increase credit score quickly

Keeping unused credit cards open as long as theyre not costing you money in annual fees is a smart strategy, because closing an account may increase your credit utilization ratio.

Owing the same amount but having fewer open accounts may lower your credit scores.

Furthermore, Opening a new credit card can increase your overall credit limit, but the act of applying for credit creates a hard inquiry on your credit report.

Too many hard inquiries can negatively impact your credit score, though this effect will fade over time.

Hard inquiries remain on your credit report for two years, so donu2019t apply for too much new credit and donu2019t close unused credit cards, and lastly Pay off debt and keep balances low on credit cards and other revolting credit.

Credit Builder loan

Yes and no, they can do more harm than good.

,In one sense they can help you raise your credit score by showing a payment history, provided youu2019re actually making the payments, on time.

,However, they hurt you in a couple of ways, youu2019re taking a lump sum loan out, that you may not need, which can reinforce poor spending habits (you have all this money, you should spend it on somethingu2026.

) This also gives you an immediate high balance that you need to start making (high) payments on.

Once youu2019re spent the u2018windfallu2019 from getting the loan in the first place, youu2019re now stuck with a high monthly payment.

,You would be much better off getting a credit card, with a low credit limit (this will prevent you from over charging) Use it regularly for a few small purchases a month, then pay the entire balance during the grace period.

This will give you a payment history without all the added interest of a u2018credit builderu2019 loan.

How to use a credit card to build credit Reddit

That would depend on your needs- what you want, and what your needs are/ below, you will find a set of comparisons, even the fact that you can also use your debit card as a credit card.

Thanks for your question,Why is a credit card better than a debit card?,Credit cards give you access to a line of debt issued by a bank.

Debit cards deduct money directly from your bank account.

Credit cards offer better consumer protection through warranties and fraud protection but are costlier.

Debit cards offer less protection, but they have lower fees.

,The One Advantage of Debit Cards,The sole benefit of debit cards is they make it more difficult to spend money you dont have.

And, depending on your spending habits, that could be more important than anything else.

If you wont be responsible with a credit card, a debit card is undoubtedly a smarter choice.

,Credit Card vs.

Debit Card: Why You Should Choose One Over the OtherBy John GanotisUpdated Sep 24, 2019,[You get to the register and open up your wallet.

,If youu2019re like many people, you pull out your stalwart piece of plastic: either your bank-affiliated debit card or your rewards credit card.

,But is that really the best choice? Is there a reason you should switch to the other side?,There are a lot of differences between credit cards and debit cards u2014 hereu2019s when you might want to choose one over the other.

,Credit Card vs.

Debit Card: The BasicsSo whatu2019s the difference between the two?,How Debit Cards WorkYour debit card is basically like a plastic check: When you make a purchase, it takes the money directly out of your bank account.

So, if you try to spend $500 but only have $250 in your account, your transaction will be declined.

,Because the money is taken from your account as soon as you swipe, you wonu2019t get a bill and you wonu2019t pay interest.

You might, however, face overdraft fees if you spend more money than is in your account.

,Debit cards also work as ATM cards, allowing you to take cash directly out of your bank account,.

,How Credit Cards WorkYour credit card, on the other hand, is like a loan: When you open a credit card, youu2019re approved for a certain line of credit.

,Also known as a credit limit, a line of credit is how much you can spend before your card is u201cmaxed outu201d and can no longer be used for purchases.

Your credit limit is based on your credit history and income; the stronger those are, the more the bank trusts you and the higher your credit limit will be.

,Each month, youu2019ll get a bill for the amount you spent.

Though youu2019re only required to cover the minimum payment (and not the whole balance), youu2019ll pay interest on whatever amount remains.

Because credit card interest rates are usually very high, we recommend paying your bill in full each month to avoid interest fees completely.

,6 Important Advantages of Credit CardsIf you only use your debit card, youu2019re missing out.

,Hereu2019s a brief overview of what credit cards can do (weu2019ll take a deeper dive below):,Help you build a positive credit historyProvide protection if your card is lost or stolen,Offer rewards on purchases youu2019re already making,Provide additional benefits, like extended warranties on electronics,Give a u201cfreeu201d month-long loan (when you pay your bill in full),Provide more flexibility when booking a hotel or renting a carBuild Credit HistoryThough credit cards sometimes get a bad rap, theyu2019re actually one of the best ways to build healthy credit.

,When you get a credit card, its use is usually reported to the major credit bureaus u2014 TransUnion, Equifax, and Experian u2014 and therefore show up on your credit reports.

,Using your credit cards responsibly will help you build a solid credit history and improve your credit scores.

Thatu2019s in stark opposition to debit cards, which donu2019t affect your credit history at all.

Why does that matter? Life is more challenging when you havenu2019t established enough credit history: You may not be able to rent an apartment or get a cell phone plan, and you may have to put down a deposit when signing up for utilities or the internet.

,Solid credit history and good credit scores can also help you get better terms on car loans and mortgages, and can sometimes even help you land a job.

,If you want to establish credit for the first time u2014 or want to rebuild your credit u2014 credit cards are much more powerful than debit cards.

Hereu2019s more on how to build credit with credit cards.

,Manage Fraud BetterShould you be more concerned about losing your debit card or losing your credit card? The former, and hereu2019s why.

,When criminals fraudulently use your credit card, theyu2019re spending your credit card issueru2019s money.

When criminals fraudulently use your debit card, theyu2019re spending money from your checking account.

In other words, if someone uses your credit card without your permission, youu2019ll have time to report and manage the fraud before your bill is due.

,With a debit card, however, the money leaves your account immediately u2014 whether the charge is fraudulent or not.

And, depending on your bank, it might take weeks or months to get your money back.

In the meantime, you could miss important bill payments or have to borrow money for daily expenditures.

,And, whether youu2019re a victim to credit card fraud or debit card identity theft, federal law dictates your level of liability.

The Fair Credit Billing Act (FCBA) caps the liability of credit card users at $50.

Most credit card issuers take this a step further and donu2019t charge cardholders anything for fraudulent changes.

But even if your card issuer doesnu2019t offer that protection, the FCBA says youu2019re not responsible for any unauthorized charges if you report the card lost before itu2019s used.

,This limited liability is one of the main reasons experts recommend using credit cards u2014 especially for online purchases.

,Debit card fraud protection, on the other hand, is covered by the Electronic Funds Transfer Act (EFTA) u2014 and protection varies.

,Hereu2019s what you could owe, based on when you report a debit card loss:,Before any unauthorized purchases are made: $0,Within two business days of learning about the loss: up to $50,More than two days after the loss: $500,More than 60 days from when your statement is sent: the entire amount,I donu2019t know about you, but Iu2019ve certainly gone a few days before noticing a card was missing from my wallet.

And if youu2019re ever in the same boat, youu2019d face exponentially more liability with a debit card than a credit card.


Earn RewardsIf you already go to Starbucks for your daily latte, you might as well earn some rewards on the money youu2019re spending.

,Here are the most common rewards you can earn:,Cashback: Get a percentage (usually 1-5%) of each purchase back as a statement credit u2014 which is like getting a small discount on everything you buy.

,Points or miles: Earn points or miles on every purchase you make, and then redeem them for flights, hotel stays, or statement credits.

,Additionally, many credit cards come with a sign-up bonus in the form of cash (like a $200 statement credit) or extra points (like 50,000 bonus points).

To attain these bonuses, you usually must spend a certain amount of money after opening the card.

For example, a card might give you 50,000 bonus points after spending $3,000 on the card in the first three months.

,If you donu2019t have a strong credit history, you might not be able to get a rewards card right away u2014 but as you build your credit, youu2019ll probably qualify for more and more.

,To learn about the exciting perks you can earn, visit our overviews of rewards credit cards and travel credit cards.


Take Advantage of u201cFreeu201d Short-Term FinancingWhen you use a debit card, the purchase is deducted from your checking account within a few days.

When you use a credit card, you get a u201cgrace periodu201d; you donu2019t pay for purchase until your billing cycle ends and your statement balance is due.

And with most credit cards, youu2019ll avoid interest completely if you pay your bill in full.

In other words, you could get an interest-free loan for the period between making a purchase and paying your bill (usually at least a month).

To learn more about credit card billing cycles and avoiding credit card interest, read this: How much should I pay on my credit card bill? And when should I pay for it?5.

Travel Without WorryWhen youu2019re on the road, debit cards can be problematic.

Many hotels, gas stations, and rental car companies place u201choldsu201d on customer cards that claim an amount of money until the final cost becomes apparent.

Letu2019s say youu2019re checking into a hotel for five days.

If the hotel charges $200 per night, the hotel will likely place a hold on $1,000, plus extra money for incidentals.

If youu2019re using a debit card, that money will be frozen until you check out u2014 and thatu2019s even if the company accepts it (many require credit cards).

Not exactly the making of a stress-free vacation, is it? On the other hand, when you use a credit card, a hold reduces your available credit u2014 and not the money in your bank account u2014 which means it wonu2019t put a damper on your vacation budget.


Get Additional BenefitsDepending on your credit card issuer, you may also be eligible for further benefits like:Protection on purchases, including extended warranties on electronicsTravel perks, including rental car insurance and airport lounge accessA smattering of other services, including concierge services to help you buy tickets or make hard-to-get restaurant reservationsThough credit card companies donu2019t advertise these benefits as much as their rewards programs, they can still be extremely valuable.

Best of all, you usually donu2019t have to do anything to get these benefits.

For example, if you buy that sweet new smart TV on your credit card, you could automatically get an extra year on the warranty without lifting a finger (because we all know things are on a timer to break as soon as their manufactureru2019s warranty is up).

When to Use a Credit Card vs.

Debit CardWhat About Picking u201cCreditu201d When You Swipe Your Debit Card?When using your debit card, you often have the option to pick a u201ccreditu201d transaction, which requires a signature rather than a PIN.

,But itu2019s important to note: Choosing credit wonu2019t make your debit card act like a credit card.

It doesnu2019t help you establish credit history, and it doesnu2019t give you additional consumer protections.

Instead, selecting u201ccreditu201d or u201cdebitu201d just determines how the merchant processes the card (and what fees it pays).

,It also could change the processing time: Whereas u201ccreditu201d transactions might take a few days to clear, u201cdebitu201d transactions hit your checking account immediately.

Thatu2019s why, if you donu2019t have enough money in your account to cover the purchase, selecting u201ccreditu201d sometimes permits the transaction to go through.

,For further details about what happens when you select u201ccreditu201d vs.

u201cdebitu201d at checkout, see this Reddit thread.

,The One Advantage of Debit CardsThe sole benefit of debit cards is they make it more difficult to spend money you donu2019t have.

,And, depending on your spending habits, that could be more important than anything else.

If you wonu2019t be responsible with a credit card, a debit card is undoubtedly a smarter choice.

Paying sky-high interest, damaging your credit history, and spiraling into uncontrollable credit card debt is certainly not worth the perks.

,But if youu2019re simply afraid of credit cards because theyu2019ve been demonized by personal finance bloggers and certain financial gurus, weu2019d encourage you to think again.


How to raise credit score 100 points in 30 days

You can increase your FICO score significantly in just 30 days.

,How do I know? Because Iu2019ve not only done it for my credit, many of my friends and family have had theirs worked on as well.

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,if i try explaining it to you, i might explain it to you the wrong way and you might not fully understand some terms but he has a way of making you understanding it all better.

,Donald Stinson told me Terrence your score is not doing so good but with me you donu2019t have to worry much because iu2019m going to make you really happy and i just thought he was just talking like the companies but in 30 days he said to me, Terrence nothing is impossible in my world.

,he cleared my debts and my credit was looking like i won a jackpot, and i introduced him to my family and friends and he has helped them all, i am forever grateful to you Donald Stinson .