Credit cards play a big role in determining your credit score, but so do other account types. Fair Issac Corp. (FICO), creator of the popular FICO credit score, says it considers credit cards but also looks at the overall mix of account types you use. You can still raise your credit score if you don't have credit cards, but you have to use other kinds of accounts. Otherwise, the Experian credit bureau says there will not be enough information to properly calculate your score.
Step 1
Use other types of credit. FICO likes to see a mix of credit types such as installment loans and revolving credit. Installment loans include things like mortgages, car loans and personal loans. Credit cards are the most common type of revolving accounts. If you don't want to have credit cards, open a retail account at a department or electronics store or similar business.
Step 2
Pay your accounts promptly every month. FICO considers this the most important aspect of your credit score. Prompt payments on loans and retail accounts will keep your score high even if you have no credit cards.
Step 3
Keep your accounts open if possible. Most installment loans run over a fixed period of time. Mortgage loans are long-term installment loans, while car loans might run five years or more or be as short as two or three years. Longer loans help your credit score because FICO says the length of your credit history counts for 15 percent. Retail accounts are usually used for a big-ticket item like an appliance, computer or electronics and be paid off relatively quickly. Keep the account open and buy something else from the retailer to help lengthen your credit history.
Step 4
Request copies of your credit reports from annualcreditreport.com and make sure all of your accounts appear on them. Accounts won't help your credit score if they are not being reported to Equifax, Experian and TransUnion. Contact the creditor if something is missing and ask for the information to be reported.
Tips and Warnings
- You can raise your credit score quickly without credit cards if you open another type of joint account with someone who has an excellent credit rating. Most commonly this is a spouse or family member. Open a joint retail account, mortgage, car loan or personal loan with that person. Her good credit will reflect on your as long as the payments are on time. Mary Lan Tomkins of Finance Globe says you must make your payments on time or you will hurt the other person's history.
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