- 1). Start with rent-to-own appliances and/or furnishings. While rent-to-own stores may charge a higher rate and a higher retail price for their products, they do report a renter's payments to the credit bureaus. This allows a renter to slowly but consistently rebuild his credit history while enjoying the use and eventual ownership of the appliances and/or furnishings.
- 2). Find a rent-to-own home. Rent-to-own home opportunities are perhaps the best way to rebuild credit without credit cards, and give a renter who would not otherwise qualify for a mortgage the opportunity to buy a home. In home rent-to-own situations, the renter typically pays more than the market rental rate for a home and the seller uses the overpayment to fund a down payment account. Once the renter's credit is restored--usually within one to two years, she can use the down payment savings to qualify for a mortgage.
- 3). Pay any loans and credit lines in a timely manner and pay more than the minimum payment. Along with rent-to-own situations, a consumer can boost his credit by paying any other loans he holds on time and consistently for at least 18 to 24 months. If possible, pay more than the minimum payment on those accounts.
- 4). Use PRBC's credit reporting services. PRBC (Pay Rent, Build Credit) is a lesser known credit reporting agency that allows payments other than revolving and installment loans to be reported on a consumer's credit report. PRBC reports regular payments consumers already make to lenders that don't first require taking a loan--such as utility bills and rent payments.
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