How to Build Credit Without Credit Cards
Apply to rent an apartment., Get added to an existing rental agreement., Request that companies report your monthly payments., Make your payments on time.
Step-by-Step Guide
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Step 1: Apply to rent an apartment.
When companies check your credit rating, it helps you to build credit.
These inquiries show that there is interest in offering you credit.
If you apply to rent an apartment under your own name, the rental company will most likely make an inquiry to the credit bureaus.Renting an apartment involves the risk that you might not pay or might damage the property.
It also involves an obligation to pay on a regular basis, just like a credit card.
The company may also report whether you are paying each month.
Those payments may show up on your credit history, helping you to build credit.
Rental companies and property managers do not have an obligation to report payments.
Some may do so as part of their standard practices.Even if though don't they may be willing to if you ask them to do so.
There is a cost for them to report, but also a benefit.
When more people report, they can better evaluate future tenants’ applications. -
Step 2: Get added to an existing rental agreement.
If you live with other people and can't or don't want to move into your own apartment, make sure your name appears on the rental agreement.
Renting a room from a friend or sharing an apartment will not help you build credit if your name is not on the lease.
Contact the property manager or landlord and ask them to add your name. , Everyone has recurring monthly bills.
These include phone, cable, power, water, trash, and other such utilities.
Your payment history for these bills can help to build your credit.
These companies rarely report your activity, unless you don't pay.
But, some may do so if you request it.Call or write to the various companies that you make regular payments to, and ask if this is possible.
If you live with other people and split utility bills, it is a good idea to make sure your name is listed on at least one of them. , Make sure to always pay your bills and pay them on time.
Failure to do so may damage your credit.Companies will report any failure to pay your bills, even if you have not asked them to report your payments to credit bureaus.
They will also report any payments that are very late. -
Step 3: Request that companies report your monthly payments.
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Step 4: Make your payments on time.
Detailed Guide
When companies check your credit rating, it helps you to build credit.
These inquiries show that there is interest in offering you credit.
If you apply to rent an apartment under your own name, the rental company will most likely make an inquiry to the credit bureaus.Renting an apartment involves the risk that you might not pay or might damage the property.
It also involves an obligation to pay on a regular basis, just like a credit card.
The company may also report whether you are paying each month.
Those payments may show up on your credit history, helping you to build credit.
Rental companies and property managers do not have an obligation to report payments.
Some may do so as part of their standard practices.Even if though don't they may be willing to if you ask them to do so.
There is a cost for them to report, but also a benefit.
When more people report, they can better evaluate future tenants’ applications.
If you live with other people and can't or don't want to move into your own apartment, make sure your name appears on the rental agreement.
Renting a room from a friend or sharing an apartment will not help you build credit if your name is not on the lease.
Contact the property manager or landlord and ask them to add your name. , Everyone has recurring monthly bills.
These include phone, cable, power, water, trash, and other such utilities.
Your payment history for these bills can help to build your credit.
These companies rarely report your activity, unless you don't pay.
But, some may do so if you request it.Call or write to the various companies that you make regular payments to, and ask if this is possible.
If you live with other people and split utility bills, it is a good idea to make sure your name is listed on at least one of them. , Make sure to always pay your bills and pay them on time.
Failure to do so may damage your credit.Companies will report any failure to pay your bills, even if you have not asked them to report your payments to credit bureaus.
They will also report any payments that are very late.
About the Author
Anna White
Dedicated to helping readers learn new skills in DIY projects and beyond.
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