Building Credit Without a Credit Card

A credit card is how many people build their credit. Unfortunately, not everyone can get approved for one due to poor or no credit history. If you’re in this situation, don’t worry! Other options can help you build your credit score and eventually qualify for a better interest rate on loans when the time comes.

How to Build Credit Without a Credit Card

To build credit for yourself, you can make payments on: - existing debt - secured card - co-signed loan - student loans

7 Ways to Build Credit Without a Credit Card

A secured card typically works best for individuals with no credit or looking to rebuild bad credit.

1. Secured Credit Card

7 Ways to Build Credit Without a Credit Card

These loans do not require you to have stellar credit to receive approval, just the income to make payments. They work by depositing money into a bank account and borrowing money from it while making repayments.

2. Credit Builder Loan

7 Ways to Build Credit Without a Credit Card

If you don’t meet the requirements for having credit cards on your own, having an authorized user status on a cardholder’s account might be beneficial to building positive “payment history,” a credit scoring component.

3. Authorized User Status

7 Ways to Build Credit Without a Credit Card

By paying rent, utility bills, and rent, you also demonstrate your ability to manage other liabilities. Taken together, these added items can create a good credit score worth using when applying for a loan or credit card from a bank or credit union.

4. Alternate Payment History Appearing in Your Credit Report

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