Bankruptcy Law, Timothy Kingcade Posts

Ways to Build Credit Without a Credit Card

Building good credit is an important part of planning for the future.  A high credit score allows you the opportunity to borrow money for a car, a home, or even cover the costs of an unexpected medical bill. For many people, however, using a credit card to build credit may seem intimidating and scary.  Fortunately, there are other ways to build your credit score without having to open up a credit card account.

Below are some ways to build your credit score without using a credit card:

Credit-Builder Loans. Credit-builder loans are offered by certain credit unions or banks. You are allowed to borrow a small amount (usually under $1,000) and then make payments for 12 to 24 months. Payments go into an interest-bearing CD or savings account. On-time payments will help build credit.

Passbook or CD Loans. This loan uses the balance you already have in a savings account or CD to secure the loan. Making the agreed payments on time will reflect positively on your credit score.

Personal Loans. These loans are also offered by credit unions and banks; however, do not require collateral and typically have slightly higher interest rates than secured loans.

Peer Lenders. This type of loan will allow you to borrow money in order to establish a credit profile. Certain peer lenders report activity to the credit bureaus, so make sure you are aware of the consequences if payments are not made timely.

Federal Student Loans. These loans can be obtained without a credit check and are reported to the credit bureau, regardless of your activity. That’s why it is important to stay current on your payments. It is recommended that you do not take out these type of loans unless you absolutely need them.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at