Have you struggled to build up your up-credit score? Good news. There are now more ways to build it up without having to take on debt.

Having a good credit score can be crucial in getting a loan with a decent interest rate, while not having one can make it really difficult to obtain a loan.

Building a credit score in a nontraditional way.

An important first step that can help you build a solid credit score is to check if you have a credit report on file at any of the three major reporting companies, TransUnion, Experian, and Equifax.  If you discover you have a credit report, it does not necessarily mean you have a credit score. There may not be enough information on it to create a credit score. Make sure the information on your report is accurate and up to date. If you find any errors, you can send a letter and dispute the inaccuracy by explaining the error. The bureau generally has 35 days to investigate and respond.

Using a credit card or loan to build your credit score

If you don’t have a credit score one of the easiest ways to get one is to be added as an authorized user onto the credit card of someone who already has good credit. For example, let’s say you have a lot of student loan debt, and are unable to qualify for a credit card, and you are married, your spouse could add you as an authorized user.

If that type of option is not feasible and you would like to have your own credit card but cannot qualify, you could start with a secured credit card. This option will require you to have a bank account with some funds in it.

A secured credit card is unlike most traditional unsecured credit cards because they require you to put a deposit down first. For example, if you have $300 to put down, the card will usually grant a $300 line of credit. Not only can a secured card help you build up your credit they can also be a good learning tool for only taking on debt that you can afford to pay off. These cards minimize risk because the money to pay off the debt is already in your bank account.

Another option is a credit builder loan, which is often available at credit unions and smaller banks. These are loans that you’ll pay for in installments and receive the money at the end. By making timely payments you can increase your credit score.

Use your payment history and other payments

There are also services now that allow you to get credit for other monthly payments you make to show your creditworthiness.

The credit reporting firm, Experian, recently launched Experian Go. This service allows users to create a credit report and score using any lines of credit or loans that are already in your name.  Another tool that can be quick way to build a credit profile while increasing your credit score is called Experian Boost. This product lets users add payments such as cell phone bills, utility bills and streaming service memberships to their Experian credit report. Most of these services are free while some services charge a fee, Transunion’s eCredable Lift, costs $24.95 a year, and is an app which works with your utility companies to pull in your account and payment history.

There are other services that let you pull your monthly rent payments into your credit report, which may boost your score. Check with your landlord, some of these services come with fees, while others are free.

Mistakes to avoid

It can take six months or more for you to see any changes in your credit score, no matter what you do, but your credit progress can be quickly erased if you miss a monthly payment. This can put a big dent in your credit score. One way to ensure you don’t miss any payments is to set your recurring bills on auto pay.

Get help if you need it

If debt has become a problem and you would like to speak to someone about your credit or need help managing unsecured debt, such as payday and installment loans, and credit card debt, you can contact the account managers at Progressive Debt Relief. You can schedule a free consultation by calling 877.590.1847 or through the online contact form.

*Progressive Debt Relief does not provide legal, financial or tax advice and the above should not be construed as such.