 TITLE: Do You Really Need a Credit Card? CONTENT: Although credit cards can help you build credit, they aren't absolutely essential to doing so. Here are some ways to build a credit history without credit cards.\n*   **Pay your bills on time.** Payments on installment loans, such as car loans, student loans or personal loans, are reported to the credit bureaus, so making loan payments on time can help you build a credit history and improve your credit score.\n*   **Become an authorized user on someone else's credit card.** Do you have a trusted family member who has excellent credit and is willing to add you to their credit card account? When you become an authorized user on their card, the account will be added to your credit report, and you'll benefit from the primary cardholder's credit score. Although the primary cardholder is ultimately responsible for all charges, you can build credit by using the card and making timely payments. For the greatest benefits, choose a card that's been open a long time and has a low credit utilization rate (meaning only a small percent of the available credit is being used).\n*   **Get a credit-builder loan.** These unique loans, offered by credit unions, community banks and online lenders, are designed to help people build credit. When you apply for a credit-builder loan, the lender puts the loan amount into a savings account. You make monthly payments on the amount over six to 24 months, and payments are reported to the credit bureaus. Once the loan is paid off, you can access the money. Credit-builder loans generally range from $300 to $1,000. What matters is not the amount but paying it back, so be sure to choose a loan with manageable payments for you.\n*   **Sign up for Experian Boost™† .** This free service adds your on-time payments on utility, phone and streaming bills to your Experian credit report, which can help improve your Experian credit scores quickly. Normally, these payments aren't reported to credit reporting agencies.\nAlthough the options above can help you build credit, there's another reason to consider a credit card: Your credit mix. Credit mix is an important factor in your credit score and refers to how many different types of credit you manage. If you have installment credit such as a student loan or car loan, getting a credit card will add revolving credit to your credit mix, which can improve your credit score.\nIf you're worried that having a credit card will tempt you to overspend, consider getting a secured credit card. A secured credit card requires you to make a deposit, typically between $200 and $2,000, that the issuer uses as collateral. Your credit limit is generally equivalent to your deposit. By using the card to make small purchases and paying your balance on time each month, you can improve your credit score. Eventually the card issuer may convert your card to a regular unsecured credit card. END