How to build credit score without a credit card?

Every individual needs to have a credit score at some time in their life, be it for your loans, your mortgage and your car or even simply for your shopping. In these days it is a must to possess a good credit score for easy access to things you want, for various processes you are involved in and in general for a smoother working of your life. Now, obtaining a credit card is not the only method to gain a good credit score, read along and you will learn how to gain a good credit score in some alternative ways without even having a credit card.

Request organizations to send reports in your favour:

If you have certain bills that you pay per month like that of your rent, cable or mobile bills, then you can request your providers to send reports on your account activity to major credit bureaus such as Experian, Equifax and TransUnion.

Put an application for a secured credit card account:

If you have such an account, then you can put an appropriate amount of cash down as deposit in exchange for the allowance to charge against the card. Be mindful to have all your payments done on time and to use account as conscientiously as possible, this is may influence the lender to be willing to transform the account to a conventional unsecured credit card account after a certain while.

Request to be included as an authorized user:

It is possible to ask your friend or a member of the family to add you as an authorized user to their account. You can then make purchases from the account without being held responsible for repaying any debt. Though the credit card lenders show authorized user accounts to credit reporting organizations but some may not, so you would need to check before proceeding to add yourself.

Build your score by maintaining good habits:

Since building this score takes a lot of time, you have to make sure that you behave responsibly as a paying citizen and a use, here are the following ways:

  • Make sure you make all your payments within time and not delay anything, not only with credit accounts but also utility accounts and your routine bills. Bills that are kept unpaid are noticed and scored badly.
  • Don’t utilize your credit often and keep a low profile. Utilization is the credit you used compared to the credit available to you.
  • Don’t open multiple new accounts at the same time as they lessen your average account age which partly makes up your credit score.
  • Keep accounts open for as long as you can (not applicable If you have unused cards that contain an annual fee). As a user you should try to keep them functional and active for history of all your payments and credit use.
  • Have your property manager or landlord report your rent
  • Take a loan, it will build your score if you borrow money and pay it back on time
  • Open a store credit account.


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