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    10 Ways To Build Credit Without A Credit Card

    Build Credit Without A Credit Card

    You may be familiar with the saying ‘you need to have credit to build credit’ - and one of the most popular ways to do this is by keeping low balances on your credit card and establishing a pristine payment history. Still, what if you don’t have a credit card? 

    Fortunately, there are several other ways to establish a positive credit score. Let’s take a closer look at some of them to learn how to build credit without a credit card.  

    1. Apply For A Credit Building Loan

    Also known as a credit-builder or fresh start loan, this type of lending product is ideal for both bad credit and no credit borrowers.  

    • After approval, you’ll be required to deposit the entire loan amount in your lender’s bank account. The company will keep these funds as security until you’ve fully repaid the loan by making regular monthly payments
    • If you manage your repayments professionally, you’ll see an increase in your credit score as your lender reports this positive behavior to the bureaus. However, if you miss payments or default on the loan, your FICO score may drop further

    2. Try Peer-to-Peer Lending              

    This type of financial product – sometimes abbreviated as P2P - allows you to register online and seek out a private investor who will lend you the funds you require at a competitive APR.

    P2P lending may benefit borrowers with low credit scores thanks to flexible lending criteria, but you may have to wait up to two weeks or longer for approval in the event that you can’t secure a private lender. 

    3. Buy A Car On Credit          

    Several bad credit lenders provide vehicle loans that can help you solve two problems at once: obtaining a new car and boosting your credit score. 

    Along with the other lending products on this list, the positive impact on your FICO score depends on you making your payments diligently each month.

    4. Get A Federal Student loan           

    The current economy and social situation brought about by COVID-19 may be the ideal time to go back to college.  

    • You’ll get the chance to improve your credit score by securing a federal student loan and making regular monthly payments as per your agreement
    • Government-backed student loans tend to have lower interest rates and more flexible repayment terms than many other types of credit. You may also be able to suspend repayments while you’re studying and start paying down your debt after graduation

    If you choose to pursue this option, you’ll want to do your research and choose a course of study that’s likely to boost your earning potential in the future.

    5. Apply For A Mortgage     

    The housing market is still very active in 2020 and this could be the ideal time to become a homeowner or relocate for the purposes of remote work opportunities. 

    • A mortgage is an excellent way to build your credit while financing a useful asset that could appreciate in years to come
    • It’s important to note that bad credit borrowers may not be able to secure the best APRs on their mortgages. However, if you shop around you may be able to secure a home loan with a reasonable interest rate and you can always refinance when your FICO score rises

    6. Ask Your Landlord To Report Rent Payments        

    If you’re currently a tenant, you could be making regular monthly payments to your landlord without receiving any benefits where your credit score is concerned. Fortunately, there are ways of changing this. 

    • If your landlord doesn’t currently report your rental payments to one or more of the credit bureaus you can always ask them to. This may be easier in the case of corporate landlords that are used to dealing with the bureaus, but a private owner can also report payments 
    • If you choose to make this type of request bear in mind that both timely and late rent payments will be reported to the bureaus

    7. Borrow Against Your Savings        

    A CD (Certificate of Deposit) loan is another convenient way to boost your credit score by using cash that you may already have on hand.  

    • Like a credit builder loan, it depends on you having an amount equivalent to the value of the loan available in cash. You’ll need to make your monthly payments on time to see a positive impact on your credit score

    8. Try A Rapid Rescore         

    If you’ve improved your repayment habits lately and reduced the balance on your credit card there may be a delay of several weeks or months before you see a change in your credit score.  

    A rapid rescore is a paid service that can help speed up this process. For a small fee, the credit bureaus can recalculate your credit score instantaneously using the latest information they receive from your creditors.

    9. Use A Bad Credit Personal Loan  

    This option is one of the best methods for borrowers with low FICO scores to boost their numbers. There’s no need for large security deposits and you won’t typically have to wait long to get the result of your lending decision. 

    As with other types of lending, you’ll want to make timely monthly payments to enjoy an increase in your score. 

    10. Become An Authorized User       

    Finally, if you’d like the convenience of a credit card you could become an authorized user on someone else’s card. Ideally, you’d want the main cardholder to have excellent credit given this will help boost your score too. 


    Improving your FICO score without a credit card is definitely possible. By considering some of the options listed above you’ll be placing yourself in an ideal position to boost your numbers and benefit from more approvals along with lower APRs.