Advice and Tips

8 ways to increase your credit score without using credit cards

Advice and Tips // 18 August 2016

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Your credit report is very important as it can directly affect your ability to borrow money and it impacts any credit terms offered. So if you possess a pristine record, you’re likely to qualify for 0% credit.

However, if you’ve not got a pristine record, you’ll likely be turned away or be given a much higher interest rate. You might be wondering what else can you do to improve my credit score. We’ll provide 8 tips to increase your credit score without using a credit card.

Bills in your name

Bills for Internet, telephone, cable TV and utilities only appear on a credit report if the account is in collection. This is starting to change, however, as some creditors report all payments. It might be wise to see if your provider does.

Many providers are more than happy to provide a letter of reference for accounts that are in good shape. While this won’t affect your score, the letter when provided to a creditor will provide reinforcement of a well-kept account and you might be able to gain special consideration as a result.

Address the issue

Understand what is causing your credit score to dip by contacting the agency customer service and enquire. Reports state that up to 25% of credit reports have a major error such as outdated information, presence of fraud or incorrect details. Getting to the bottom of this can help secure you an immediate uplift on your credit score.

Open a new bank account

A bank account has a connection with your credit score so keep a positive relationship with your bank as it can lead to other favorable opportunities.

If you’re unsatisfied with your bank, you might want to open an account with a local credit union. They are more likely to offer pleasant terms. However, this isn’t always the case for everyone, so it’s best to research this.

New personal loan

Your current bank might be a good place to secure yourself a small personal loan. If your credit isn’t top notch, then a secured loan could be ideal using your cash as collateral.

You will be able to borrow as much money as the account you’re using has as collateral. The account used for collateral will not be completely accessible until the money borrowed is paid back.

This method is a nice way to build credit as the newly acquired personal loan will appear as an instalment account.


Employment history isn’t attached to your credit score; however it does appear along with a full history of employment in addition to your credit score and credit history. Lenders prefer that a person has stayed with an employer. Periods of unemployment and part-time jobs are only considered at the discretion of the lender. If you’re not working, written documentation of income would need to be provided.

Pay on Time

This is very basic advice – but it holds weight. Pay off your bills on time.

Let’s be honest here, late is late, there’s no way to make it sound more positive than it is. If a payment is late it becomes labelled as ‘past due’ or ‘late’. A credit report will never delve into why the payment was late, it will simply be reported as late. So the excuses made for tardiness will never matter.

If you ever fear late payment, it’s best to plan ahead with your credit agency.


You might be thinking “let me get someone to co-sign me” as a way to improve your credit score, however this method is risky, not only for you, but for the co-signee. Simply put, when you ask someone to co-sign you’re putting the co-signee at risk and it could cause complications in future. The biggest risks for you personally are broken friendships or family problems.