Don’t feel like using a credit card? 5 alternative ways to build a credit score

Don't feel like using a credit card?  5 alternative ways to build a credit score
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Your credit score is a number that reflects how trustworthy the credit reference agencies consider you when it comes to paying loans and managing money. For the most part, a good credit score is required if you want to get a loan in the UK. Naturally, this can be a barrier for people who have a poor score or limited credit history. If you don’t feel like using a credit card, there are other ways to build a solid credit score to give you financial flexibility. Here are five alternatives to using a credit card to build a credit score.

1. Use buy now and pay later schemes

Your credit score reflects your creditworthiness on all types of loans. Therefore, buy now pay later schemes can count towards your score. If you feel confident that you can make payments on time and repay the amount you spend, using a buy now, pay later scheme is a great way to boost your score without a credit card.

However, it is important that you pay attention to the interest rate of the scheme you use. Like borrowing from a credit card, buy now pay later schemes will charge interest on the money you borrow to make purchases. Over time, this interest can add up and you may end up paying much more than you originally borrowed.

2. Register to vote

In the UK, you can build your credit score simply by registering to vote! This is a great option for anyone who doesn’t want to borrow money to build a credit score. register to vote build your score by confirming your name and address. Having these details confirmed makes you a stronger candidate for loans as it shows your credibility.

3. Put your name on the house bills

If your utility bills are in someone else’s name, it may be worth adding your name to some. Paying bills every month is a great way to demonstrate credit worthiness and can contribute to your overall credit score.

If you live with other people, you may want to consider seeing whose name is currently on the bills and making changes if yours isn’t on any. Common household bills include gas and electricity bills, rent, broadband, and council taxes.

4. Open a joint account

If you have a family member or significant other with excellent credit, you may be able to apply to open a joint account with them. Joint accounts contribute to both of your credit scores, which means you can benefit from your good spending habits.
If you’re worried about the implications of borrowing money with credit cards, this can also be a great way to make the process easier. This is a popular option among couples and parents who want to teach their children how to manage credit.

5. Take out a personal loan

A good way to prove your creditworthiness without using a credit card is to take out and pay off a small personal loan. Personal loans often have much lower interest rates than credit card debt, making them a great option for those who don’t want to risk paying much more than they borrowed.

If you choose this option, be sure to pay your loan on time and make larger payments when you can to pay it off faster. The faster you can pay back what you borrowed, the better your credit score will be.

If you need to build a good credit score Quickly, there are a number of fantastic credit cards that are designed to build credit. Take a look at our list of top rated credit cards for bad credit Learn more!

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