How to Build Credit without Credit Cards

Money market is highly regulated in this day and age and in order to make use of financial services, a company should be able to present a strong case. When it comes to individuals, it is not much different and one has to have a decent credit history to be able to avail credit facility.

The easiest way to go about it is to have a credit card. With a few months of timely payments, your history will be quite reasonable and you can expect a decent Annual Percentage Rate to be offered to you, if and when you need financing of any kind.

However, if you do not have a credit card or don’t want to use one, there are ways of building your credit score as well. The process is long but it pays off.


  • 1


    You will need the help of someone who already has an established credit history in order to get financed in most cases. Your own history cannot be built without actually making use of a credit facility of anyone. So get someone with a good credit score and a decent income to co-sign your application which will make your case stronger.

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    Car Financing

    Nothing can build a credit score faster than car financing. Once you finance a car, your credit beacon score can hit 700 within six months, should you make all the payments on time. It is best to pay at least a little more than the required minimum payment.

    The way to go about it is to buy a new cheaper car provided you are offered the services of a First Chance Lender. Once that happens, they may slap you with a 10% or higher APR. That may sound a lot but it is okay. Make payments on the car as much as you can for six to eight months.

    Afterwards, you can sell the car and get a new one as per your liking for great rates. Your credit score will be beaming.

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    Home Financing

    This will require a co-signer with good credit histroy for sure. It should help you in getting your score high pretty quickly as well. It is a long term commitment so make sure that you have a decent amount of money not only to pay the monthly mortgage but also the closing costs and the down payment for the house or condo.

  • 4

    Personal Loan

    You can get one on a higher APR without credit, provided that you have a good income. This will help you in building the credit. It is ideal that you pay it off as soon as possible to avoid the finance charges.

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