4 ways to build your credit score

Four ways to build credit without a card

RICHMOND, Va. (WWBT) - If you are looking to build your credit score, here are some helpful tips on accomplishing the goal.

  1. One way to build up your credit is to become an authorized user on someone else’s card. Lexington Law says this is a good option if you are too young to get a line of credit, or if you don’t qualify under the CARD Act of 2009.
  2. Pay your bills on time - all of them. That means your mortgage or rent, cell phone bills, student loans and utilities. Thirty-five percent of your credit score is made up of payment history.
  3. Take out a credit building loan. This is different from a traditional loan. Instead of receiving the money up front and then paying it back, the amount that you borrow goes into a certificate of deposit account. It’s a way to established a decent payment history to help improve your credit score.
  4. Finally, other types of loans help your credit score, such as student loans and auto loans. Just remember, each one requires a hard credit inquiry that can knock your score down a few points.

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