All forms of credit represent some type of debt at the most basic level. That’s the full situation whether you obtain a credit card, get that loan, or start a line of credit. And, at the conclusion of the your credit reports and scores are specifically designed to tell lenders how well (or not) you handle debt day.
Therefore, generally speaking, the solution to whether you can easily build credit without dealing with financial obligation is, “No. ” If you’re building credit, it’s likely to possess some as a type of debt.
The only exclusion to the blanket guideline is perhaps authorized users; in the event that you become an authorized individual on some body else’s bank card, that debt does not — legitimately — participate in you. Nevertheless, the total amount will more than likely still show through to your credit history, to ensure financial obligation nevertheless impacts your credit profile.
Even credit-builder loans are, theoretically, debt — you’re just prepaying your loan, in place of making re payments after you can get the funds. Read more