How Can I Build My Credit Without a Bank Account?

A credit score affects your ability to purchase a vehicle, secure housing and even get a job. When building new credit or repairing poor credit, it's important to focus on your credit score. Making changes in your behavior, such as paying debt obligations early, keeping low credit balances and avoiding the urge to close old accounts, can boost credit scores over time, even if you don't have a bank account.

Instructions

1

Consider applying for a secured credit card. If you don't have a credit history (or a bad credit history), companies might not give you an "unsecured" credit card. To get a secured credit card, you put down a security deposit. A history of timely credit card payments may encourage the creditor to offer you an unsecured credit card, which doesn't require a deposit.

2

Make timely credit payments. Paying monthly debt obligations on time has a huge impact on credit scores, according to MSN Money. Try paying your debt obligations at least a week early every month. Over time, remembering to make payments will get easier.

3

Keep balances on credit cards low. When using a credit card, always have your credit rating in mind. Balances that exceed 35 percent or more of your total available credit will negatively affect your credit rating. Keeping your balance below this percentage will boost your credit score over time.

4

Keep old credit card accounts open. Once you start building credit, it might be tempting to close old credit card accounts. However, leaving these accounts open (with a zero balance) shows credit bureaus you have restraint. This will raise your credit score, according to "Entrepreneur" magazine.

5

If you haven't reviewed your credit report in a while, request one from all three of the major credit-reporting bureaus: Equifax, Experian and TransUnion (see Resources). Consumers are entitled to a free report once every 12 months. Review each line of the report. If you find inaccurate information, such as late payments or accounts you don't own, contact the reporting agency immediately. Include supporting documentation, such as copies of bills showing timely payments, or a police report if the accounts aren't owned by you.