How to Build Credit History in 2025

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Why Credit History Still Matters

If you’re searching for how to build credit history, you’re not alone. A credit history shows how you’ve handled money over time. Lenders, landlords, and even some employers look at your credit history to decide if you're responsible with finances. Having a long and positive history can help you qualify for better loan terms, lower interest rates, or a lease on that apartment you’ve been eyeing.

But if you’ve never had a credit card, just moved to the U.S., or recently paid off your debts, your credit history might be thin or even nonexistent. That doesn’t mean you’re out of options — but it does mean you should start building now.

For more on how credit history is used, visit the Consumer Financial Protection Bureau.

What Helps Build Credit History

Your credit history is built over time through financial behaviors that get reported to credit bureaus. Some of the key actions include:

• Paying bills and loans on time
  
  
• Keeping credit balances low
  
  
• Having a mix of account types (like loans and credit cards)
  
  
• Avoiding frequent hard inquiries
  
  

You don’t need to carry debt to build credit — you just need to show consistency. Your credit score is shaped by your credit history, with payment history making up the largest chunk. According to FICO, on-time payments account for 35% of your score.

Can You Build Credit Without a Credit Card?

Yes — and it’s becoming more common. For people who don’t qualify for traditional credit cards or simply want to avoid revolving debt, other tools can help build credit history.

Credit builder loans are one of the most accessible options. Instead of receiving the loan upfront, you make monthly payments first. These payments are reported to all three major credit bureaus. Once the term ends, you get the money back — minus interest. This method helps build both credit and savings.

Another option is rent reporting services, where your landlord’s payment history gets reported to the bureaus. Some phone and utility bill reporting services also support credit building.

Real-Life Credit Building: What It Looks Like

Let’s say Alex, a 25-year-old recent college grad, just landed her first full-time job. She’s never had a credit card, and her student loans are deferred. But she wants to move into her own apartment and maybe finance a used car. Her landlord asks for a credit check, but her file is almost empty.

To avoid getting denied, Alex looks into how to build credit history fast. She finds that a credit builder loan lets her start creating payment history without taking on risky debt. After six months, she has a growing credit profile, more confidence with money, and a small savings balance.

This type of scenario is common for many Americans — from immigrants building credit for the first time to gig workers who want more financial security.

How Cheers Credit Builder Fits Into Your Plan

Cheers Credit Builder makes building credit feel less complicated. If you don’t want to open a credit card or risk overspending, Cheers gives you another path. When you open a Cheers Credit Builder account, you pick a repayment plan that fits your budget — starting at just $25 a month.

There’s no setup fee and no hard credit pull. Your payments are reported to all three credit bureaus - Experian, Equifax, and TransUnion, which helps you build credit history month by month. Unlike many other tools, your first payment is processed the next business day after signing up. This speeds up the reporting process — helping you get results sooner.

Your money stays safe in an FDIC-insured account, and at the end of your term (12 to 24 months), you get your full payments back, minus the interest. Cheers only charges a fixed 1% monthly APR. That’s it.

Whether you’re starting from zero, bouncing back from setbacks, or simply want a smarter credit building tool, Cheers Credit Builder supports your journey without the pressure of traditional debt.

References:

Consumer Financial Protection Bureau – Official Credit Score Education
https://www.consumerfinance.gov/

Experian – Credit Reports and Scores
https://www.experian.com/

Equifax – Personal Credit Services
https://www.equifax.com/personal/

TransUnion – Credit Monitoring and Reporting
https://www.transunion.com/

FICO‍https://www.myfico.com/credit-education/what-is-a-fico-score