Can You Have a Credit Score Without a Credit Card?

The credit score reflects your money management skills and illustrates how well you are doing financially. In addition, having a decent credit score helps lenders assess your eligibility and how responsible you are regarding paying off your dues on time. 

If you are in UAE, your AECB credit score is a three-digit number falling in between 300- 900, where a score of 300- 619 is considered "poor", 620-679 is "fair", 680-730 is "good", and above 730 is known as an "excellent" credit score.

Now a common question that arises in this regard is, can you get a credit score without a credit card? So, let's take a look.

Can you get a credit score without a credit card? 

The quick answer is yes. You don't have to own credit cards to get a credit score. You can build this score by repaying your other financial dues on time. Moreover, every credit product aside from credit cards reported to the credit bureaus in your name can showcase your creditworthiness and help you get a credit score without a credit card.

How can you get a credit score without a credit card? 

If you want to get a credit score without a credit card, here are some best practices to follow: 

Taking a loan

The easiest way to build a credit score without a credit card is to take a loan. Now, this loan can be of any type, secured or unsecured. Either way, once you apply for credit and avail of it, you need to pay your dues and build your credit score.

Nonetheless, a point to keep in mind here is that, without a credit score, getting an unsecured loan can be tricky. Hence, if you do not have a credit score, then go for a small quantum secured loan like a gold loan, and pay it off successfully to build your credit score.

Purchase on EMIs

In case you are not applying for a loan, then also you can build your credit score, and the easiest way to do it is to convert your purchases into EMIs. For instance, if you are planning to buy a new TV, instead of shelling out the cash from your pocket, put it on EMIs and pay it off successfully.

Since this will be counted as a debt, completing the payment will reflect on your credit repayment history.

Act as a co-signer

Now, if you are wondering whether you can you get a credit score without a credit card or not, then here is a shortcut. In case you become a co-signer of a loan agreement for someone who is struggling to get the required finances, it will reflect on your credit report. It is always a boost.

Tips to improve your free credit score without a credit card 

With time, your good credit habits can help you get good credit scores. However, if you want to be proactive in improving your credit score, then consider implementing these quick tips and tricks: 

Pay your dues timely

Now, the easiest way to manage and improve your credit score is to pay your dues on time. This will include all your credit dues and other EMIs.

Maintain a low credit utilisation ratio 

Another easy way to boost your credit score is to maintain a low credit utilisation ratio. Usually, keeping it low projects you as a responsible borrower, and that reflects positively on your credit profile, thus, improving your credit score.

Keeping a good mix of credit

Maintaining a good mix of credit is another easy way to improve your credit score. This means that instead of relying on either secured or unsecured loans if you can have a credit history that contains a healthy mix of both, it improves your stance as a borrower.

Check credit reports

Checking your credit reports at regular intervals can help you find out inaccuracies that might bring down your credit score. Moreover, you also get an alert on identity theft and potentially fraudulent activities. 

How long does it take to get a credit score without a credit card?

Usually, most scoring systems take anywhere between 90-180 days to generate your credit score. However, some scoring systems can generate your credit score with as little as 30 days of account history. Ideally, an account history of 90-180 days is required to calculate your credit score without the credit card. You can now check your free credit score without a credit card here with Policybazaar.

So, not having a credit card does not have to cause any hindrance to having a good credit score.

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