Last updated:
December 13, 2023
Written by
Grace Patel

How To Build Credit Score Without a Credit Card

Building a strong credit score is the backbone of good financial health, but many people believe credit cards are the only way to do this. This is why we are here to help you! We will explore different methods to build your credit score without relying on credit cards; perfect for those of you seeking financial flexibility.

Understanding Your Credit Score

We have a great easy-to-digest guide to credit scores - including what they are, what can affect them and how to check yours.

At its most basic, a credit score is a number that represents your ‘creditworthiness.’ This number reflects your financial history and money management, and impacts your financial health by influencing interest rates, terms of borrowing money and likelihood of being accepted for a loan in the first place. 

So, how can you improve your credit score without a credit card? 

1. Register on the Electoral Roll

A simple yet effective way to boost your credit score in the UK is to make sure that you are registered on the electoral roll. This registration is not just about being eligible to vote; it plays a significant role in the credit assessment process.

How does it help?

  • Identity Verification: Being on the electoral roll allows Credit Reference Agencies (CRAs) and lenders to easily verify your identity and current address. This is a fundamental check in the credit assessment process.
  • Indicates Stability: Lenders view your registration on the electoral roll as a sign of stability. It shows that you have a fixed residence and are consistent in your living arrangements.
  • Enhanced Credit Profile: Even if you have a thin credit file, being on the electoral roll adds an important piece of information. It shows that you have a traceable history at a particular address, which is valuable to potential creditors.

Want to register? Head over to the GOV.UK Register to vote webpage. The page estimates sign-up to take around 5 minutes. 

2. Manage Debt and Bill Payments Efficiently 

The way you manage your debts and handle your regular bill payments plays a pivotal role. It's not just about avoiding debt, but about demonstrating your financial reliability and discipline to demonstrate that you are a reliable person to lend money to in the future. 

  • Repay Outstanding Debts: Regularly paying off loans and credit balances demonstrates responsibility and improves your debt-to-income ratio (amount of debt in your name compared to the amount you earn)
  • Bills in Your Name:  Having utility (electricity, gas and water) and broadband bills in your name because some utility companies will register your payments with the CRA’s and will contribute to your credit score. This is especially important in shared living situations.
  • Consistent Bill Payments: On-time payments of utility and phone bills are often reported to CRA’s, reflecting positively on your credit history. A top tip from us is to set up monthly direct-debit payments so you don’t accidentally miss a payment or if you want to make manual payments each month, make sure the payment clears by the due date showing on the bill statement.

3. Check out Ozoomi Boost! 

Experience the dual benefits of enhancing your credit score and saving towards a significant purchase like a new car with Ozoomi Boost. It is a straightforward process that doesn't involve credit cards!  It’s designed to reward your financial management and discipline with results that benefit you in as little as 12 months.

  • Choose Your Budget-Friendly Monthly Payment: Start by choosing a monthly payment (starting at £20) that comfortably fits within your budget.
  • Loan Calculation and Savings: Ozoomi multiplies your chosen amount by 12 to create your total loan amount (with 0% interest!). This is then stored away in a safe and secure savings account.
  • Positive Reporting to Credit Agencies: As you make these monthly payments to pay off your loan, Ozoomi informs credit reference agencies (CRA’s) of your consistent money management.
  • End-of-Year Benefits: After a year, not only is your loan fully paid off, but you also have a substantial deposit saved for a car, alongside an improved credit score that can lead to more favourable financial terms! 

We think this offers a smart way for you to build your credit and save at the same time, making your financial goals more achievable.

For more information about Ozoomi Boost, take a look at our Credit Building Section with 6 easy steps to boost your credit score and save at the same time! 

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