How to Build Credit Without a Credit Card

Credit Information

October 11, 2021

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If you want to build and improve your credit score, there’s no time like the present. While many people accomplish this by opening and responsibly using a credit card, that may not be an option if you are unable to get a credit card or would rather avoid variable interest rates, penalties and fees. If you open a credit card and plan to only make the minimum payment, you’ll actually end up paying more than you would by taking out a higher interest personal loan. A personal loan from World is also a great way to not only get the money you need, but also boost your credit.

Take out a personal loan.

One of the quickest and easiest ways to boost your credit is taking out a personal loan. Personal loans have several advantages. First, it gets you access to the funds you need for things like major purchases, paying down high-interest credit card debt and unexpected emergencies.

At World, we are proud to offer personal loans for poor credit, bad credit, no credit and good credit. We report to three credit bureaus, which means your World loan does double duty as a way to build and boost your credit. By establishing healthy financial habits, like keeping your usage ratio low and always making on-time payments, you’ll start to see your number on the rise.

Which leads us to…

Always make your payments on time.

Over a third of your credit score is based on your payment history, which means on-time payments are one of the easiest and most impactful ways to boost your credit score. Even missing a single payment can have a detrimental impact, so set a timer, calendar reminder, do whatever you need to do to make sure your payment always hits before the due date.

With a World loan, you can make online payments and set up recurring payments, so you never miss a payment.

Pay down existing credit card debt.

Much like on-time payments, your outstanding credit card balances have a big impact on your overall credit score. This number is determined by looking at how much credit is available to you versus how much you’re currently utilizing. The lower the ratio, the better your score. If you’re running a big balance, it’s important to note that maxing out your credit cards is often considered a red flag to creditors that you may be financially struggling.

Opt for a secured credit card.

A secured credit card is another great option for people with poor or no credit. Secured cards allow you to load your card with funds and make purchases or pay bills just like you would with any other credit card. In doing so, you start to establish and build credit with each purchase you make and bill you pay. Each month, your credit card usage is reported to all three credit bureaus, which helps establish and boost your credit score. Over time, responsible use of your card and on-time payments can help unlock other financial benefits and products.

Ready to apply for a World loan and start building your credit? Get started.