A checking account alone is not enough to obtain good credit, but it can help obtain access to credit. Bank accounts kept in good standing and positive banking relationships look good to potential lenders, according to Business Insider.
Opening a checking account and keeping it free from overdrafts and other signs of financial struggle can help show that an applicant is responsible with money and can handle a loan or credit card. People who do not prefer traditional banks can also open accounts with credit unions.
There are a few other ways to improve credit without using credit cards. A handy way to start building credit is to start reporting rent payments to credit bureaus, as reported by U.S. News & World Report. This can be done by signing up for a third-party service and using the service to make rent payments. Although rent payments do not affect credit scores, they do show up on credit history, which can have an overall positive effect on credit.
Paying bills such as utilities and phone bills is another good way to access good credit. Customers should put bills in their own name and pay bills regularly. Like rent payments, bills do not affect credit scores, but they show up on reports.
Employment history can also show up on credit reports. In addition, most loans and credit cards require stable employment before approving customers. Therefore, it can help to maintain a stable source of employment.