Hi all!

I have read that you can only improve your credit rating if you have a credit card.

Unfortuately I have a poor score and would like to know if you can actually build up to an good score without the need for a credit card.. Also how long approximately would it take to build a good credit reputation?

My main source of borrowing credit is catalogues.at the moment. I am doing a lot better in making payments on time!

answer from chinatrade114.com small business QA
No, not true. It is important to be on the electoral roll. If you are not on the roll or have been at the same address for less than 3 years this will affect your rating. All kinds of loan agreements will improve your rating, credit cards, store cards, pay monthly phones, bank loans, mortgages. Missing payments adversely affects your rating. Information is retained for 6 years so you can completely rebuild your rating in that time and improve it in between each year. It is worth getting credit reports from the major agencies to make sure the information is correct. Sometimes if you change address, companies don%26#039;t allows provide the correct updated information to the agencies
answer from chinatrade114.com small business QA
No, that is a myth!

Most lenders prefer to see a history of payments on big ticket items such as mortgages, auto, boat, RV and personal loans. These types of credit are what really build ones credit reports.

Due to the ease of getting credit cards, lenders do not pay much attention to this type of debt unless it has a really poor history. Your best bet is to include in your history, a large purchase such as mentioned above.

Try to get a small personal loan under $5000 from your bank or credit union. If you do get it, put the funds aside and pay it off in a few months. The small cost of the interest paid is worth the boost to your credit report. Been there Done that and it works.

Hope this answers your question.

answer from chinatrade114.com small business QA
Late last year PRBC and FICO joined forces to create a new type of credit report that utilizes rent payments, utility payments, etc. to build a credit history.

It takes about six months after your %26quot;free%26quot; signup before you can ask for a validation report which costs about $10 or so. That creates your no-credit-card credit report. You can find more information at the link below.

answer from chinatrade114.com small business QA
The point of the credit rating system is to show how responsible you are with credit, so in order to improve your credit rating, you will need to prove that you are capable of repaying debt, this can be credit cards, overdrafts, loans (inc shop loans i.e. for TVs), etc.

Why don%26#039;t you apply for a credit card, and use that. Just remember to pay off the balance each month, and you won%26#039;t be charged any fees/interest, and you%26#039;ll be able to build a strong credit rating.

answer from chinatrade114.com small business QA
Are these catalogues reporting to the credit bureaus? If they%26#039;re not, then it%26#039;s not helping you!

A %26quot;credit score%26quot; is just that, a score based upon your credit usage history. You must have some type of actual credit to have a history.

If you don%26#039;t like credit cards, try a bank loan.

Or, a secured credit card!

answer from chinatrade114.com small business QA
No not true! Credit cards are not the only way to create credit. Mortgage, student loans, car loans or any bank loan would do… credit cards seem easier because they are so available.
answer from chinatrade114.com small business QA
Making regular loan payments on time is the only way to up your credit rating. If you ask for a credit rating check with Equifax or Experian from time to time you will see how you are doing.
answer from chinatrade114.com small business QA
your last phrase said it all –pay on time and keep your balances at less than 30% of allowable credit and your scores will go up over time
answer from chinatrade114.com small business QA
Get a catalogue. Get goods pay for them week by week. And walla!

Takes time tho. Good luck!

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