How to improve your credit score | Financial Times

Everybody needs credit at one point in their lives unless you have enough money to last you a lifetime. Having a good credit score puts you in a position to get credit finance, whether it’s that college loan, mortgage, or business capital.

Credit repair strategies are important for those with bad credit scores. In contrast, those with no credit score find it nearly impossible to access lenders.

Most merchants perceive that responsibly using your credit card is the only way to improve your score. We at the EMB blog beg to differ.

Here are our five tips to improve your credit score without getting a credit card:

  1. Take a small loan from your bank

You can visit your bank or credit union and confirm if you qualify for a loan from the institution. Then, you can apply for a small loan that you can pay back over time.

Ensure you focus on the repayment schedule either weekly or monthly. Then, you can improve or repair your bad credit score if you meet the lenders’ repayment deadlines.

  1. Go for Peer to Peer loan

Suppose you find it difficult or unable to access a loan from your bank or credit union. Consider peer-to-peer loan systems. These are online marketplaces where investors get matched with borrowers. Such platforms may include Prosper or Peerform.

But, these loans, unfortunately, come with higher interest rates depending on your score. So, always go for a loan amount you can comfortably repay.

  1. Go for a federal student loan.

Federal student loan applications report their data to the credit reporting agencies. Suppose you clear your loan on time or make a one-time payment; you may repair your bad credit score over time.

Yet, these student loans may have higher interest rates for those with bad credit scores and short histories. 

  1. Be someone else’s authorized account user.

If you know someone with a great credit score, you can request to be an authorized user of their account. Your credit score is likely to improve if the account holder makes monthly payments and purchases. 

But, this strategy can also have the opposite effect if the account holder may default on their payments. This effect could worsen your score, especially if it is a merchant account.

  1. Report your rent payments

Contact your rental management or landlord and know if they report rental payments to the credit reporting agencies. If they do not, you can find a payment service that works with credit agencies. Then, choose a platform that best suits you and start reporting your rent payments.

There are sites of payments services used for this purpose, such as, Experian RentBureau, or

Gradually improve your score

Find the option that best works for you, and within no time, you will be improving or repairing your bad credit score. It’s worth noting that making your payments on time may increase your credit score. Yet late payments will destroy any progress you may make on your score. 

Author Bio

Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated credit repair merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.