How to Build Credit Score Without Credit Cards

Your credit score is important, it is what is used to make a lot of important financial decisions. New credit cards, home loans, car loans, and mortgages all used your credit score to make a determination. Unfortunately we don’t all have the best credit scores. While you may be able to get one or more of these various financial accounts with a bad credit score, your terms will not be good. You will end up paying way more than you need to. There is hope, there are a variety of ways you can build your credit score, even without a credit card.

Opening a credit card may be extremely hard for some people so they will want to go other routes for improving their credit. In addition, they might not be able to open a credit card due to bad credit. Use these methods to improve your credit without opening a credit card. Some of them are easier than you probably thought they were.

Thoroughly Read Through Your Credit Report

Some people have bad credit and don’t even know why. It is important that you review your credit report thoroughly and regularly. You are allowed to retrieve one free credit report for free per year. There are also a variety of credit report websites that will allow you to perform soft pings on your credit score. These soft pings do not damage your credit score but can allow you to get information on your credit status.

If you find something you don’t understand on your credit report speak with a financial analyst or look it up. There are occasionally errors on credit reports and if you catch them you can correct them. Catching an error on your credit report can significantly repair your credit depending on the issue. The process for correcting errors depends on the type of error that you find.

Knowing your credit report also helps you to better target what you need to do to repair your scores.

Financial Payments

For any financial accounts you do have whether it’s a loan, mortgage, or even rent, make sure that you pay on time. Late payments are reported to the credit bureau and can significantly hurt your credit score. Having a bad history of payments can actually affect your credit score more than having all of your credit cards maxed out. Rent is reported to the credit bureaus as well late utility payments and the like. Reporting late rent or utility bills isn’t mandatory and your landlord can choose to forego that.

If you are late on one payment it isn’t the end of the world. Just make sure to not let it happen again.

Ask Companies To Report

There are plenty of bills out there that you pay regularly. Your cellphone bill, cable bill, and utilities. We all have bills like this but very few companies report these bills to the credit bureaus without being asked. Try asking the companies that you pay regularly to report to the credit bureaus. Payments make up 35% of your credit score.

It is best not to ask companies to report your payments if you regularly make late payments. Bad payments will hurt your credit score.

Get Authorized On Someone Else’s Credit Card

A family member such as a parent, brother, sister, or spouse may already have a credit card that is in good standing. You can become authorized as a credit card member on someone else’s account even if you never use it. This allows you to build credit as long as the other person takes good care of their credit card. You should be careful with this option because you are as liable for their credit debt as they are.

Consider Self-Reporting

There are three standard credit reporting bureaus: Equifax, Experian, and TransUnion. While a lot people don’t know the names of the three credit bureaus they know that they exist in some form or another. What many people don’t realize is that there are a few other credit bureaus out there that specialize in helping those people who have no credit or bad credit. These credit bureaus will build up a credit score for you based on your payment of bills and/or rent.

One such bureau is the PRBC or Payment Reporting Builds Credit. You submit a minimum of three bills or other regular payments and they will monitor them to generate a score for you. Just like a typical credit bureau you receive a score between 300 and 800 based on your payment history and other information obtained from bills. PRBC goes to a credit score known as the expansion credit score from FICO.

Many places still aren’t using the expansion credit score or PRBC reports. However, you can still use it at some places that don’t check it. Request they check the credit score and if they can’t, bring in a copy of the report when you are having your credit analyzed for a loan or other financial purposes.

Credit Builder Loans

Credit bureaus and some smaller banks offer a special kind of loan called a credit builder loan. With a typical loan you receive money from a bank to spend on something such as a new car or to pay a deposit immediately. A credit builder loan is different. The money you pay off goes into a special account that earns interest. At the end of the loan you get the money back plus the interest. Despite the fact that you get the money back, a credit builder loan still counts as credit so it boosts your credit score.

Most credit builder loans are $1,000 or less and are typically paid off within one or two years. If you have the money to pay off such a loan it is a perfect way to build your credit score because you get money back in the end.

Student Loans

Attending college can do more than help you get a job, it can help you rebuild your credit. Apply for a federal student loan and pay it over time in installments. This will help you build up your credit. You don’t want to pay the loan off right away though. Instead, store the money in a savings account that earns interest and pay the account off regularly. This will help to better build your credit score.

College will also help you to get a higher paying job which can lead to being able to pay off any outstanding credit earlier.

Get a Car Loan

Car loans are a great option for building up your credit because you can get them at really low APR rates if you have good credit or good payment history. Even if you don’t have the best credit in the world you can typically get better rates for a car loan then a loan from a bank or another source.

You also have the benefit of getting a car. You don’t want to sign up for a car loan that you can’t pay off though. Look for a car that you can afford. Many car places will allow you to finance used cars. There are also insurance plans for those who are making car payments. These plans will pay off your remaining balance should you get into a car accident.

Get a Co-Signer

If you find that you are having trouble getting loans of any kind or have a bad credit score when applying for an apartment consider getting a co-signer or guarantor. A co-signer tells the bank or landlord that you have someone who is willing to back up your credit. Should there be a problem with your payments the guarantor will be responsible for making payments. Your co-signer/guarantor must have good credit and when they are being used to back you for rent they typically must make three to five times the rent.

There are a lot of different options to build your credit when you have bad credit or no credit. Before you get into any deal make sure that you check the terms and conditions. The sooner you start rebuilding your credit the sooner you will have a better score. A better credit score will help you in many ways down the road.


Keller Williams Realty Review

Keller Williams Realty started in Austin Texas with founders Gary Keller and Joe Williams. Starting out with just a single office, Keller and Williams’ company grew out until it reached 700 offices and 110,000 agents all over the globe. By 2014, they were the largest real estate franchise (according to # of agents) in North America (via The Best Companies).

For customers looking for higher-end realty, Keller Williams has a separate website called Luxury Homes International. In addition, they have a separate website for commercial business, farm and ranch properties.

While there is plenty of information regarding employment as an agent with Keller Williams Realty, there is a relatively lacking amount of information about the customer experience side of this company.

Keller Williams Customer Experience

We have found some significant information regarding what experience a customer may expect to have when working with Keller Williams, but there is a lack of specific information and reliable reviews. Most of the specific services found for customers are characteristic of most real estate agencies. So proceed with caution in pursuing business with this company, as information regarding customer relations is scarce.

Here are some of the information we found:

Selling with Keller Williams features a number of great services which can help make the headache of selling your home a breeze. Selling services are designed to give you a painless selling process, send you to the best buyers and get your home’s information out there to ask many sources as possible.

Keller Williams Selling Features

  1. Entry into the Multiple Listing Service

You’ll be listed in the Multiple Listing Service (MLS), which will make your home searchable to every licensed Realtor looking for homes. A majority of housing sales happen through the MLS, so getting your home on this list will give you the highest chance to sell.

  1. National Syndication

In addition to being on the MLS, your home will also be listed on the Keller Williams Listing Service (KWLS), putting your property on the map for buyers who may not live in your area.

  1. Pre-qualified Buyers

Listing your home with a Realtor increases the chances that your buyer will also have a Realtor representing them. This means the entire housing transaction will be handled by professionals, limiting wasted time and confusing negotiations.

  1. Contract Assistance

When two professionals are on the job, contracts are handled for you. The agents involved with your case are trained with all the complex legalities involved with house transactions.

  1. House Showing Handled

House showings are a pain, especially when you’re trying to live your life and work on your regular schedule. With Keller Williams, your Realtor will handle house showings, leaving you to go about your business while they show off your home to potential buyers.

  1. Proper Pricing

Pricing can be a stressful part of the house selling process, but when you work with a Keller Williams realtor, you’ll have professional advice for what price you should ultimately set. Your Realtor knows what houses with similar features sell for, and (s)he also knows what the housing market is doing at the point you decide to sell.

  1. Free Unless Your Home Sells!

And finally, one of the best features of Keller Williams Realty is that you will not have to be concerned with losing money on a house or realtor who just can’t sell. If your home isn’t sold, you won’t be charged anything.  You will however, have lost time, and opportunity cost when market conditions fluctuate.

Keller Williams Employee Experience

If you are pursing employment with Keller Williams Realty, you can expect to find much more information about what your experience may be. Keller Williams has a very unique agent-centric business model which is based on the idea that the success of the company comes not from the brand, but from the agents who put in the work and give the company a personable face. Keller Williams’ concept is for the company to do everything it can to build the individual agents’ businesses, and in turn, those agents will build a thriving industry. Their philosophy seems to be working, as the company has spread throughout the whole world.

Here are a few features of employment with Keller Williams:

  1. Optional Desk Fees

Most Keller Williams agents work in their own home rather in an official office. As such, desk fees are completely optional and not required by the company. You may start out your business working in your own home, but when it grows to a point that you need an office to run operations, space will be offered at a pass-through cost.

  1. Monthly Fees

You can expect to pay anywhere from $75-$110 a month, depending on the state of the housing market economy and specific KW economy that month. Ultimately, this will depend on vacation and whether you are at the higher end or lower end of the market. For your fee, you will receive access realtor career training, support and education from the best in the real estate industry. Your fee also includes insurance for Errors and Omissions.

  1. Shareholder Status

Keller Williams considers its employees to be shareholders in the business rather than employees. As such, they are not only sharing the in profit of sales, but also making their own decisions in the office.

  1. Agent Transaction Fees

You will not be required to charge transaction fees under Keller Williams Realty, but you will be free to do so if you find it appropriate. The final decision comes down to you.

  1. Other Fees

As the agent of your business, you can expect to pay for all business expenses, such as business cards, open house signs, sign riders and name badges. Keller Williams does negotiate with national and local vendors, helping to drive down costs for their agents but these costs are all charged to you as an agent.

  1. A Liberating Position with Creative Freedom

Perhaps the best thing about working for Keller Williams is the face that you will be given a huge amount of freedom to run your business in exactly the way you want to. While you will have to comply with certain general business regulations, many of the logistical and financial decisions will come down to you.

  1. Fair Commission Structure

Because Keller Williams is such an employer-centered company, the commission structure for agents is extremely fair and allows agents to reap the benefits of good work. The essential structure is on a 64/30/6% split: 64% to the agent, 30% to the Market Center, 6% to KWRI.

Compared to most other real estate agencies, this is a great deal. In most cases, the more you make, the more you give away. With Keller Williams, however, there is a commission cap which means that, once you hit the cap, the rest of the earnings are yours. The commission gap for KWRI is $3,000, and the Market Center cap is based on operating expenses and economic conditions of your specific market center.

Keller Williams provides all the training you need to succeed in your business, and they provide you with the organizational support to succeed. To work for Keller Williams is to become your own entrepreneur.  It’s a great option for someone who wants a well-paying job with a lot of freedom to handle business the way they see fit.