Credit Improvement Without a Credit Card

[Anonymous]

I owe a lot in student loans and have bad credit a the moment but I don't want to try and get any credit carrds. Is there a way to improve my credit score without getting credit cards? 

[OmarGB9]

Pay on time and more than the minimum, work on removing any negative/derogatory info off your reports. Just general advice since you didn't give us much information.

[Anonymous]

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@Anonymous wrote:

I owe a lot in student loans and have bad credit a the moment but I don't want to try and get any credit carrds. Is there a way to improve my credit score without getting credit cards? 

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Student loans do not make for bad credit unless you had a default. It is possible with some installment loans, Auto, Home, etc.

[Anonymous]

I'm sure you'll decide whatever works best for you personally, OP, and we wish you the best.

Re/ the student loan line level folks, I totally understand where you are coming from - would recommend talking to the director as he or she will know the rules and whether you can actually borrow more student loan money for the purpose of repaying existing debt (at least up until a few years ago, you could not, it may have changed). Would not want you to break any rules and he or she cna help you. Hang in there -grad school is a long road and you are almost to the finish line.

[CH-7-Mission-Accomplished]

In a word, no.

Well, you can improve what you have now over time, but if you get three credit cards your score may jump 60 or more points.

You should get a secured credit card from say Open Sky for $200 security deposit (no credit check).

Then wait three months and apply for a Cap 1 Platinum.  

And get one store card.  Firestone is easy as is Kay Jewelers/Jared, or you could just get a Fingerhut card.

You don't have to use credit cards more than putting through like a $5 charge every few months but you do have to have cards to make your scores go up.

[taxi818]

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@Anonymous wrote:

I owe a lot in student loans and have bad credit a the moment but I don't want to try and get any credit carrds. Is there a way to improve my credit score without getting credit cards? 

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Well to put it in proper perspective. Seeing how fico scores things. 35% being payments. and 30% of score being Utilization or in laymens terms. (Credit Cards). 15% length of credit 10% Credit age and 10% new credit. Thats like driving without a steering wheel. if you ever want to get any kind of good credit. you will need a credit card. even if just 1. its just that simple. You can improve and be perfect in every other aspect. But without that 30% scoring your score will always be subpar.

[Anonymous]

It would be interesting to hear from the OP about what his worry or objection is to having a credit card.

There are people who have had disasterous experiences with them, something akin to an alcoholic with booze.  As in literally a person who will misuse it if is within arms reach. 

But even still, there are some ways around even that.  He could get the card, work with a supportive and trusted friend to store it at the friend's house with the actual CC number, exp date, etc. hidden from him, and then set up a small recuring charge (e.g. Netflix) and  then autopay.  Then let leave it alone.  He could ultimately do that with three different cards.  And then manage all his real spending with debit cards.

The bottom line is that it is difficult to build credit without a credit card on your profile.

[Anonymous]

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@Anonymous wrote:

I owe a lot in student loans and have bad credit a the moment but I don't want to try and get any credit carrds. Is there a way to improve my credit score without getting credit cards? 

Speaking strictly about my own personal experience, when I first started, all I had was a car loan. I paid it faithfully on time for 5 months and only saw a 4 point increase.my scores took a huge jump up when I got a secured card from capital one. Another nice bump with a few store cards. Today I took a small personal loan, (banked, making the pan payments out of the loan money) for variety on my report. If you aren't looking for improvement fast, then you can avoid credit cards, but not really otherwise.  Best of luck to you!!

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[Anonymous]

Somehow my quote thingamajig went horribly awry 😕

[CH-7-Mission-Accomplished]

Just get one $200 secured card with OpenSky (no credit check)

Then get two store cards at stores who sell stuff that you are completely uninterested in.

I have Walmart which I hate for political reasons so I only go once every 6 months and buy $10 worth of groceries.

I hate home improvement projects so I have a Lowes card.  I buy a bag of charcoal briquettes in the summer and a string of Christmas lights in December.  Done.

Hate jewelery?  Get  a Kay's card.  Then at Christmas buy a $20 charm bracelet.  Heck you can even buy something and return it and that counts as activity on the account.

Not into overpriced yuppie clothes, $5000 suits, $500 shirts, $1000 shoes?  Get a Barney's card and buy some shaving cream for $25 once  a year.

You get the idea.

You have three cards and  no temptation and a good FICO score.