The worst part about building credit?
The nagging pressure to put all your expenses on credit cards to build that glowing credit score.
Thereareoptions available to the credit-averse.
These five strategies will help you get started.
Take Out a Credit-Builder Loan
Credit-builder loans allow you to take out a loan to increase your credit score.
Each month, you pay a portion of the loan amount plus an interest fee.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
In five months, his score went from 495 to 640.
Another Self Lender user saw her credit scorerise 100 pointsover the course of a year.
After all, its probably the biggest bill you pay each month.
Ask your landlord to report your monthly payments through a service like RentTrack, Rentler orCozy.
If you sign up for RentTrack, the site will send your landlord a rent check on your behalf.
you might expect to pay a fee for the convenience.
For instance,RentTrackcharges $6.95 per rent payment.
This method requires teamwork with someone you trust.
Credit card users can request that an authorized user be added to their account.
This added user gets their own card and can make purchases just as the account holder can.
But be careful: If the account holder doesnt pay the bill, your score will suffer alongside theirs.
Want to build your credit without the temptation of using a credit card?
Ask the account holder to keep your copy of the credit card.
Out of sight, out of mind.
Get a Secured Line of Credit
Yes, youll have to use plastic to build credit with this method.
But unlike a regular line of credit, this credit limit requires you to put down cash.
Secured credit cards usually come with lower interest rates because youve already handed over collateral.
Solidsecured credit cardsreport your payment, balance and other relevant behavior to credit bureaus.
Be sure to shop around for a secured line of credit.
Some charge exorbitant fees or neglect to mention that they dont report your on-time payments to the credit bureaus.
Bills like utilities and cell phones dont get reported unless you dont pay.
If those bills go to collections, youre likely to see your credit score drop.
Lisa Rowan (@lisatella) is a senior writer at The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…