Credit card: One of the easiest ways to improve your credit score is with a credit card. However, those who do not have a credit card can also.
To take any loan it is necessary to have a credit score. You get a loan only on the basis of your credit score. Credit is a 3-digit number that tells you how your credit history has been. In simple words, how have you repaid the loan you have taken earlier? A better credit score means that it will be easier for you to get a new loan. The easiest way to build a credit score is to have a credit card.
Many people think that credit scores can be developed only by having a credit card. However, it is not so. You can also create credit scores in many other ways and apply for loans easily. Today we will tell you 4 ways through which you can build your credit score.
Take a small loan:
If you have acquaintances in any bank or non-banking financial institution, then you can take a small loan from there. Banks do not face much trouble in giving small loans. That’s why they give loans even without credit score. You can use this loan to improve your credit score. You pay the installment of that loan at the right time and repay the loan on time.
Become an authorized user:
You can become an authorized user with any known person. In this way, you can take advantage of their timely loan repayment or credit card bill payment. You will also benefit from their good credit score. Although. This is a double-edged sword. If that person’s credit score deteriorates or he defaults, you will also suffer losses.
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Report Rental Payments
You can share your rent payments with your credit card company with your landlord or property manager’s permission. Paying rent on time can go a long way in building your credit score. If you submit your rent receipt to the credit bureau, it will appear on your credit report.
Peer-to-Peer Loan:
If you are not able to get a loan from a bank or NBFC, then you can take a loan from online platforms. This is called a peer-to-peer loan. Their interest rates are much higher than normal loans. However, it is available without credit history and low credit score. You can improve or build your credit score by taking a small loan from here.
