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Early-bird savers make the most of their ISA savings!

You may have heard that early birds rap the most benefits from ISA savings accounts. This means that people who invest in an ISA early in the tax year typically see the highest returns. It’s because early birds are able to take advantage of year-round price increases, from the beginning to the end of the tax year. Therefore, these next few days are the prime time to open up and invest in an ISA account!

Early-bird advantages won’t stop with stocks and shares ISA accounts. Those who open cash ISAs may be better off by saving early too! This is because saving into a cash ISA early in the tax year will give your savings more time to accumulate interest. Cash ISA holders can earn up to £1,000 in tax-free interest on their savings each tax year.

Why is now the perfect time to open a cash ISA?

Some might say that cash ISAs have lost their appeal in recent years. Instead, stocks and shares ISAs have grown in popularity due to the seemingly higher rates of return that they offer.

However, interest rates are on the rise, which could be excellent news for cash ISA account holders. Both high street giants and smaller cash ISA providers are set to raise their interest rates in the near future to keep up with customer demand.

The Bank Of England has recently raised its base rate to 0.75% and plans to increase this further before the end of the year. Savers who invest in a cash ISA now will be able to take advantage of future rate increases and earn maximum profits on their savings.

Furthermore, investing in a cash ISA early allows you to set yourself up for the rest of the year. Cash ISAs offer easy access to savings, which means that you can take money out of your ISA whenever you need to. Investing in a cash ISA now could help you to build a financial safety net to survive inflation.

The Bank Of England expects inflation to rise to around 8% this spring! Therefore, it is wise to save every penny while you can and make the most of tax-free earnings.

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The best cash ISAs for 2022-2023

To view our full list of cash ISA recommendations, take a look at our top-rated cash ISAs. The best ISA account for you will depend on what you’re looking for.

Easy access cash ISAs allow you to access your savings at any time. This can be a fantastic option for those who want to use their ISA account as an emergency savings fund. However, easy access accounts typically offer lower interest rates in return for flexibility.

Alternatively, fixed-rate cash ISAs often offer higher interest rates. However, these savings accounts come with less flexibility, and many place penalties on withdrawals. If you are easily tempted to spend your savings, a fixed-rate cash ISA may be the best option for you.

Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post Now is the perfect time to open a cash ISA! Here’s why appeared first on The Motley Fool UK.

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March represents a busy time for the markets as it symbolises the end of Q1. And 2022 didn’t disappoint, with a number of big moves happening in the markets during March. If you’re looking to update your portfolio, it may be worth considering the stocks that came out on top. Here are the 20 most popular stocks that were traded in March 2022.

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Were there major moves in the stock market in March?

Saxo Markets has released its list of the most popular stocks traded by investors in March 2022. A number of stocks on the list are new entries, and many of February’s top players have been knocked down the list. Data such as this can be helpful when making your own investing decisions. Here’s a summary of the data that Saxo Markets has released.

Alibaba took the top spot

E-commerce giant Alibaba took the top spot in March after experiencing a wave of buyers at the beginning of the month. The stock hit an all-time low of just $76 per share at the beginning of March, which sparked a trading surge. As a result, Alibaba took the top spot on the list and beat the likes of Tesla, which is now second.

According to Mike Ownes from Saxo Markets, “Alibaba and Chinese technology companies generally have suffered a tremendous sell-off over the past year.” He adds, “Saxo’s clients have been attracted to this price action and hope Alibaba’s share recovery can continue.”

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The list had four new entries

March’s most popular list featured four newcomers including Nio, Barclays, Shell and BAE systems. Owens explains that the emergence of BAE systems is particularly interesting. This is because it shows the impact of the conflict in Ukraine. He says, “The conflict in Ukraine sees many nations seeking to increase military spending, adding impetus to the defence sector as an investment theme.”

Meta fell to fifth

Meta was February’s number one stock. However, the tech giant took a significant fall in March. On the list, Meta was in fifth place, below Alibaba, Tesla, Apple and Microsoft. 

Meta’s fall came after the release of the company’s Q4 financial release. The report revealed that Meta’s privacy policies are damaging the business, which prompted many investors to sell.

What does this mean for stocks and shares ISAs?

Investors who have a stocks and shares ISA may want to adjust their portfolio to fall in line with what happened to the markets in March. Furthermore, data from Saxo Markets could help investors to make decisions around which stocks to buy and which to sell.

According to Mike Ownes, “Those with stocks and shares ISA will want to keep a close eye on the stocks consistently performing well to improve the chance of making small, consistent gains over time.”

It is worth remembering that investing in the stock markets puts your capital at risk. While trading the news is a popular strategy, you must conduct a thorough analysis before making any investing decisions.

The post These were the most popular stocks in March 2022! appeared first on The Motley Fool UK.

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University is a time for socialising, living independently and, most importantly, learning skills that you need to develop your future career. However, your time at university also gives you a great opportunity to delve into the world of finance and introduce yourself to the stock markets. In fact, your university years could be the perfect time to start building your investment portfolio. Here’s everything you need to know about how to invest at university. 

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Investing as a university student: best practices

University students are increasingly interested in building their wealth, saving the money they earn and making investments. The job market is becoming increasingly competitive, which makes it more important than ever for university students to have their finances in check before they complete their education.

As a result, many are looking to invest to build wealth as early as possible. With that in mind, here are some tips for investing your money as a university student.

Invest little and often

It’s likely you don’t have large amounts of cash at your disposal. After all, the minimum wage currently sits at just £6.56 if you’re aged 18-20 and £8.36 if you’re 21-22. If you’re over 22, the minimum wage is still just £8.91. So, even if you qualify for the highest rate, it’s no doubt difficult to build up savings.

With lectures and assignments taking up so much time, it can be difficult to earn a significant wage as a student. Therefore, instead of investing large sums of cash at one time, aim to invest little and often.

Many ISAs and savings accounts allow you to deposit small amounts of money each month. In fact, some expect contributions of as little as £1! This would be a great way to build up your savings and investments and make a habit of investing your money regularly.

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Take advantage of handouts

You may qualify for additional grants or scholarships on top of your regular student loans. Of course, this money should be used to ensure that you can afford to study at university. However, there is no harm in putting any extra cash into your portfolio.

Alternatively, you could make the most of handouts from family and put any extra money that you can into your investments. This may mean living frugally for a short while. However, putting your money into long-term investments is a great way to secure your finances for the future.

Open a stocks and shares ISA

As a university student, you have a lot on your plate! As a result, taking time to learn about the stock market and make informed investment decisions is often off the table. If you’re too busy to learn about the stock market, it may be worth investing in a ready-made stocks and shares ISA.

These investment accounts put your money into a portfolio that is built by market experts to offer the best returns. You’re free to choose what type of stocks and shares ISA you invest in, your desired risk level and how dividends are paid.

Taking advantage of stocks and shares ISAs is a fantastic way to get into the world of investing if you don’t have time to learn about the market.

Invest for the long term

If securing wealth for the future is your investment goal, you should consider long-term investing. Long-term investing is the process of choosing investments you plan to hold in your portfolio for the foreseeable future. These could be companies that you expect to do well in the long run.

Long-term investing often comes with a much lower risk than shorter-term investment strategies. Furthermore, investing for the long term allows you to sit back and let your money grow instead of regularly adjusting your portfolio. This is a great strategy if you may not have the time to constantly monitor short-term investments.

The post How to invest when you’re at university appeared first on The Motley Fool UK.

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• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

Anyone who’s invested in the stock market will remember the hype surrounding meme stocks that began last year. Well, the stocks seem to have regained popularity with a rising number of investors showing interest in meme stocks over the last two weeks. Capital.com has released data that shows the stocks rising significantly on its platform! So, is now a good time to invest?

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No longer a fad? Meme stocks are on the rise!

When they first rose in popularity, experts assumed that meme stocks would be another market fad. However, recent data from Capital.com shows that meme stocks are on the rise once again.

In fact, 59% more retail investors traded popular meme stock GameStop last week than the week before. Furthermore, AMC entertainment saw its trading volumes rise by 226% on the Capital.com platform last week. This reflects a two-week winning streak that coincides with AMC’s recent price rally. The popular stock saw a 45% price surge on Monday 28 March, and trading volumes surged by 447% on the same day.

An expert’s take…

According to David Jones, chief market strategist at Capital.com, this sudden rise in popularity proves that meme stocks aren’t just a fad. The strategist says, “Just when we thought that the meme stock fad was so 2021, the two old Stuarts- GameStop and AMC- are back with a Vengeance over the past couple of weeks. We’ve seen a significant interest amongst our clients in trading the stocks- after all, there is nothing like a change in price to attract readers, like moths to the flame.”

Jones goes on to reveal that GameStop’s stock price has doubled since 17 March, and AMC entertainment has also almost reached this level. However, at the beginning of the month, things were looking down for Gamestop. It was trading at its worst levels since May 2021, representing a drop of more than 80% since June last year.

Jones warns that the surge in price could lead to a dip and that traders should be careful when considering adding meme stocks to their portfolios. However, the analyst says that the volatility in the meme stock market proves that meme stocks have a long way to go before dying out.

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Are meme stocks a good investment for 2022?

As Jones says, market volatility is often followed by a price dip. Therefore, those who are late to the trend may not profit from investing in meme stocks. However, if you invest in the socks whilst the trend is still beginning, you could see some significant gains in your portfolio.

Despite being considered a fad when they first became popular, the excitement around meme stocks is yet to fade. As a result, meme stocks could be an excellent addition to your investment portfolio. Many of the companies behind meme stocks have plans for future projects that could expand their operations and lead to fantastic profits. For example, GameStop has plans for an NFT marketplace that would take its operations to a whole new audience.

Remember that any investment could put your capital at risk, so it’s always a good idea to keep on top of market news and conduct analysis before making any decisions.

The post Meme stocks are back! Is now a good time to invest? appeared first on The Motley Fool UK.

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Recently, there has been talk of a possible ceasefire that could see Russia backing away from the war with Ukraine. Anyone who has been keeping up with the markets will know that the conflict has caused major volatility for a number of stocks. However, a ceasefire could see many of these stocks regain their value and shoot up in price. In particular, a ceasefire could be great news for anyone who invests in the FTSE 100. Here’s why!

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Why would a ceasefire be good news for FTSE 100 investors?

The conflict between Russia and Ukraine has caused a number of stocks in the FTSE 100 to fall. In fact, on the first day of the crisis, the FTSE 100 fell by 3%. This was the result of Russian influence that was significant within a number of companies listed on the FTSE 100. Furthermore, big hits were taken by the travel and tourism industries as travel to Europe dipped.

However, a ceasefire could see these stocks regain their losses. If so, the FTSE 100 could rise. This is because a ceasefire would see an end to the conflict, as well as the economic sanctions that have been placed on Russia. As a result, stocks with Russian influence and those that are linked to the travel industry could surge.

What stocks in the FTSE 100 could be affected by the ceasefire?

The FTSE 100 stocks that have been hit hardest by the conflict are those that have links to Russia and the travel industry. FTSE 100 stocks represent the 100 companies listed on the London stock exchange that have the highest market capitalisation. When Russia attacked Ukraine, economic sanctions were placed on the country in an attempt to reduce Russian influence over the British economy. This meant that many of the FTSE 100 stocks with links to Russia dropped. Let’s take a look at the impact.

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Polymetal International

Polymetal International has a number of precious metal mines throughout Russia and Kazakhstan. Moreover, the Russian Oligarch who set up the company is said to have ties to Putin. The Oligarch is the largest shareholder in the company with a 24% stake. As a result, Polymetal shares have been vulnerable to the ongoing conflict but could be saved by a ceasefire.

Evraz

Evraz is a UK steel manufacturing company that is part-owned by Russian Oligarchs. The company’s operations are mainly in Russia as well as the USA, Canada and the Czech Republic.

Evraz is a major player on the London stock exchange, but it was hit by sanctions against Russian Oligarch Roman Abramovich. While the company has major operations in Russia, its headquarters are in London.

British American Tobacco plc

British American Tobacco previously announced that it would cut ties with Russia. As a result, the company’s share price dropped by 1.4%. However, a ceasefire could see the company reinstate its ties with the country, which would lead to a price increase.

International Airlines Group

The travel giant saw major losses as Russia went to war with Ukraine. This was due to fears around travelling to Europe and the rising cost of fuel. However, the company has said that it is on track to make profits in 2022 if a ceasefire were to occur.

An end to the war in Ukraine would open up Europe to travel in the summer and could ease the rising cost of fuel. If this were to happen, IAG could recover its losses and have a great year.

The post Good news for FTSE 100 investors! A Russian ceasefire could lead to serious gains appeared first on The Motley Fool UK.

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In a time when inflation is at an all-time high, Brits are on a mission to grow their wealth and make smart investment decisions for the future. ISAs are popular options for both new and experienced investors, with over 13 million ISAs opened in the UK as of 2020. The type of ISA that is least common to many investors is the innovative finance ISA (IFISA). This article covers everything that you need to know about this type of savings account to help you make smart financial decisions in 2022.

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What is an innovative finance ISA?

IFISAs are by far the least common type of ISA to invest in. However, they can provide excellent profits to those who qualify for the savings account and know how to make the most of the benefits offered.

IFISAs are a type of savings account that earns profits from lending out funds to earn tax-free interest through the peer-to-peer lending network. Essentially, IFISAs allow savers to lend out their money to individuals and businesses and earn a profit when the money is paid back through the interest that is accrued.

Opening an IFISA gives consumers access to providers that can facilitate peer-to-peer lending by pairing lenders with borrowers.

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How do IFISAs work?

Just like a regular ISA, you can pay up to £20,000 per year into an IFISA. Once you have deposited money into your account, your IFISA provider will pair your money with borrowers. Over time, you will start to earn a profit when borrowers pay interest on your cash.

Therefore, IFISAs can earn money over the long term. However, account holders must be prepared to leave the funds in their accounts for a long time in order to earn profits. This is because it can take time for borrowers to pay back what they have borrowed.

Can anyone open an IFISA?

The eligibility criteria for IFISAs are slightly tighter than they are for other types of ISA accounts. To open an IFISA, you must qualify as an ISA manager.

An ISA manager is an individual or business that has been authorised by HMRC to manage an ISA account. ISA managers must be over the age of 18 and must have full approval from HMRC. As well as this, individuals must be UK citizens to open an IFISA. You can open an IFISA along with other types of ISA accounts.

Is an IFISA a good investment for 2022?

IFISA accounts provide individuals and businesses with opportunities to profit from the peer-to-peer lending network. However, only those who qualify as an ISA manager are able to open an IFISA in the UK, and there are no guarantees that you will be eligible.

If you qualify as an ISA manager, IFISAs can be a fantastic way to invest your cash. The average return on an IFISA in 2020/2021 was 9%. This is considerably higher than regular savings accounts and could be a great way to protect your wealth against inflation.

However, if it turns out that you aren’t eligible, stocks and shares ISAs are an excellent alternative for those who cannot qualify as a manager. Stocks and shares ISAs place your money into investments and earn money through dividends and share performance. These ISAs often come with high returns and are a great way to get into the stock market.

The post Is an innovative finance ISA a good investment in 2022? appeared first on The Motley Fool UK.

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• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

If you plan on opening an ISA in 2022, the best time to invest is just around the corner! Recent research by Hargreaves Lansdown has revealed the best time to max out your account. Here’s everything you need to know about how to maximise your ISA profits in 2022.
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Early bird savers made the most money in 2021/2022

Findings revealed a 66% rise in savers who maxed out their ISAs in the first month of the tax year. These savers are known as early bird savers. The increase in individuals making early contributions reflects the growing enthusiasm around ISAs in the UK.

If the pattern continues, even more investors will max out their accounts this year! The research showed that the majority of early-bird investors were aged between 30 and 54. Furthermore, men were more likely to invest early than women.

The experts at Hargreaves Lansdown have revealed that investing at the beginning of the tax year could be the best way to save. In fact, those who maxed out their accounts on the first day of the tax year could have seen their investments grow by £20,000 more than those who maxed out on the last day.

Therefore, savers should get ready to make deposits over the next few weeks. The next tax year starts on 6 April, so it may be worth making your maximum ISA contribution then.

In fact, the first day of the next tax year is a great time to make any contribution to your ISA. Some 37% more regular savers put money into their ISA on the first day of the current tax year and have seen excellent benefits. Even those who can’t make the maximum contribution of £20,000 should still consider putting money into their account on 6 April.
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Take control of your finances

According to Sarah Coles, senior personal finance analyst, “An awful lot of what’s going on at the moment is completely out of our control, but you don’t need to overcome everything that’s going on in the world to make the most of your savings and investments.”

She added that the earlier in the tax year you invest in your ISA, the better. By investing early, you can protect your savings from tax straight away. Also, you will set yourself up for a strong year of returns.

Early birds see larger gains

Maxing out your ISA account at the beginning of the tax year gives your earnings a whole year of protection from the taxman. This means that you can benefit from price rises throughout the whole year and reap the rewards tax free!

Similarly, investing a small amount into your ISA at the beginning of the tax year puts you in a strong position to make regular investments all year round. In fact, drip-feeding money into your ISA account is a brilliant way to take advantage of market dips.

Many of our top-rated stocks and shares ISAs can be opened with as little as £100, and holders can make deposits as low as £1. You don’t need a large lump sum to profit with an ISA account.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post Revealed! How to maximise your ISA profits in the next tax year appeared first on The Motley Fool UK.

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• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

The UK is experiencing a surge in inflation, which is causing Brits to cut their spending and tighten their belts. As a result, some experts are worried about possible ‘stagflation’. In fact, a recent piece in the Financial Times says that the UK Consumer Confidence Index and the continuing acceleration of inflation both point to this possible economic issue. So, what is stagflation, how might it affect the markets and how might investors respond?

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Stagflation: what’s it all about?

Stagflation is a term that refers to high rates of inflation paired with slow economic growth and high unemployment rates. Put simply, stagflation is a period of inflation in which a country’s gross domestic product experiences a decline.

During stagflation, consumers struggle to keep up with rising prices. The value of earnings drops but consumers have to spend more on consumer goods. This results in many people feeling out of their depth and can lead to an economic crisis.

How could stagflation affect the markets?

During stagflation, investors move towards stable assets that could act as a hedge against economic problems. Therefore, a number of stocks and assets could soar during stagflation. However, others are likely to decline.

Defensive assets will be popular

If stagflation does occur, investors are likely to favour defensive assets that will protect their wealth. Gold is a good example that is likely to see a spike if stagflation does occur. The asset offers a high rate of return to investors and is considered to be more valuable than cash, especially during times of economic crisis.

Defensive assets generally have a lower risk level than other types of investment. As a result, people turn to them during economic crises as a kind of safety net. Other defensive assets include government bonds.

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Investors will diversify their portfolios

Many investors protect their wealth against stagflation by diversifying their investment portfolios. So, they may move towards expanding their portfolios and putting money into lower-risk investments. This could spark market volatility and investors buy and sell their shares in stock.

Large purchases will be delayed

As people tighten their belts, big purchases are likely to be put on hold. This could be a problem for the housing market as Brits put off buying a new home. House prices have increased considerably over the last couple of years but, if people cannot afford to buy, this increase is likely to slow down.

How soon could stagflation happen?

Experts have been warning of possible stagflation since the beginning of the year. The economic problem will only occur if inflation continues to rise and the UK’s gross domestic product continues to decline. Exactly when this might be the case is difficult to pinpoint.

Inflation has risen to its highest level in 30 years, and UK’s economic growth is so far weaker than was expected for 2022. Therefore, stagflation could certainly be on the horizon for the UK. As a result, investors should keep an eye on the markets and consider diversifying their portfolios to lower their exposure to risk.

The post What is ‘stagflation’ and how might it affect the markets? appeared first on The Motley Fool UK.

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• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

The rising demand for sustainability has brought about a new credit card trend: eco-friendly credit cards. The cards are a fantastic option for anyone looking to make their credit card usage more ethical! Here’s everything that you need to know about eco-friendly credit cards in 2022.

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What are eco-friendly credit cards?

As their name suggests, eco-friendly credit cards are ‘kind’ to the environment. The cards offer consumers a more ethical way to purchase goods and encourage them to consider the impact their cards have on the environment.

Eco-friendly credit cards are typically made from sustainable materials to minimise waste. Furthermore, eco-friendly cards often donate to green causes and support ethical investments. This means that a portion of the profits earned by the company is put towards helping the environment.

What banks offer eco-friendly credit cards?

Many high street banks have started to introduce eco-friendly credit card options. The cards work in the same way as traditional credit cards but offer the added benefit of helping environmental initiatives.

HSBC

HSBC customers can choose to use a recycled credit card. These cards are made from 85% recycled plastic and the bank is aiming to offer a 100% recycled version by the end of 2022! The bank says that switching to recycled cards will reduce CO₂ emissions by 161 tonnes per year and will reduce plastic waste by a further 73 tonnes.

Triodos

Triodos bank is making big moves towards sustainability. The bank offers an eco-friendly credit card made from recycled plastic and an ethical current account option. The Triodos eco-friendly credit card has exactly the same functions as the bank’s regular PVC card, and it’s highly durable to ensure that it can withstand daily use.

NatWest

Last year, NatWest announced that its customers will receive new eco-friendly credit cards that are made from 86% recycled materials. As a result, millions of cards are set to be replaced as part of the bank’s bid to reduce the environmental impact of physical banking.

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Are eco-friendly cards the way forward?

Eco-friendly credit cards help the environment by reducing the amount of CO₂ that is released into the atmosphere. The cards also reduce global waste and contribute towards ethical projects. However, it’s clear that further improvements need to be made.

It’s argued that simply swapping PVC for recycled materials isn’t good enough. Instead, it may be better to scrap physical cards altogether and move to digital alternatives. Mobile banking, Apple Pay and other types of digital cards reduce the need to make physical banking products, and that could help to minimise plastic and fossil fuel use.

However, digital credit cards have their own environmental consequences and aren’t always the most sustainable option.

How can you be an eco-friendly credit card user?

As well as swapping to a sustainable card alternative, you could start to consider the impact your spending has on the environment. Many large banks invest in fossil fuel stocks and support projects that harm the environment. The best way to become more eco-friendly is to use a bank that invests in sustainable companies. Therefore, any money you give to the bank will go toward the greater good.

The post Eco-friendly credit cards: are they the way forward? appeared first on The Motley Fool UK.

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• Could National Grid shares offer me a dividend that won’t be hurt by inflation?

Your credit score is a number that reflects how trustworthy credit reference agencies consider you to be when repaying loans and handling money. For the most part, a good credit score is required if you want to take out a loan in the UK. Naturally, this can be a barrier for people who have a poor rating or have a limited credit history. If you don’t fancy using a credit card, there are other ways that you can build a strong credit score to provide you with financial flexibility. Here are five alternatives to using a credit card for building a credit score.

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1. Use buy-now-pay-later schemes

Your credit score reflects your creditworthiness across all types of borrowing. Therefore, buy-now-pay-later schemes can count towards your score. If you feel confident that you can make payments on time and repay the amount you spend, using a buy-now-pay-later scheme is a great way to bump up your score without a credit card.

However, it is important that you pay attention to the interest rate of the scheme you use. Just like borrowing from a credit card, buy-now-pay-later schemes will charge interest on the money that you borrow to make purchases. Over time, this interest can add up, and you can end up paying back significantly more than you initially borrowed.

2. Register to vote

In the UK, you can build your credit score by simply registering to vote! This is a great option for anyone who doesn’t want to borrow any money in order to build up a credit score. Registering to vote builds your score by confirming your name and address. Having these details confirmed makes you a stronger candidate for loans as it proves your credibility.

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3. Put your name on the household bills

If your utility bills are in another person’s name, it may be worth adding your name to a few. Paying bills each month is a fantastic way of proving creditworthiness, and it can contribute to your overall credit score.

If you live with other people, you may want to consider taking a look at whose name is currently on the bills and make changes if yours doesn’t appear on any. Common household bills include gas and electric bills, rent, broadband and Council Tax.

4. Open a joint account

If you have a family member or partner with an excellent credit history, you could ask to open a joint account with them. Joint accounts contribute towards both of your credit scores, which means that you can benefit from their good spending habits.
If you’re worried about the implication of borrowing money on credit cards, this can also be a great way to ease yourself into the process. This is a popular option with couples and for parents who want to teach their kids how to handle credit.

5. Take out a personal loan

A good way to prove creditworthiness without using a credit card is to take out and pay back a small personal loan. Personal loans often have much lower interest rates than credit card debt, so they are a great option for those who don’t want to risk paying back way more than they borrowed.

If you choose this option, be sure to repay your loan on time and make larger payments when you can to pay it back quicker. The quicker you manage to pay back what you borrowed, the better your credit score will be.

If you need to build a good credit score quickly, there are a number of fantastic credit cards that are designed to build credit. Take a look at our list of top-rated credit cards for bad credit to learn more!

The post Don’t fancy using a credit card? 5 alternative ways to build a credit score appeared first on The Motley Fool UK.

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