How to Build Credit in 2025
How to Build Credit in 2025
Starting from Zero: My Credit Journey
When I moved to the U.S. for college, I didn’t have a credit score. I had a debit card and a student checking account—but no credit history. I didn’t know where to begin or how to build credit at all. I thought building credit meant taking out a credit card and crossing my fingers I wouldn’t overspend.
After doing some research and talking to friends, I realized I wasn’t alone. According to the Consumer Financial Protection Bureau, more than 45 million Americans have either no credit history or what’s called a "thin file."
That was me. So last year, I took my first step. I signed up for a credit builder loan. I chose it because it didn’t require a credit check, it reported to the major bureaus, and I didn’t have to worry about overspending. Slowly, I started seeing changes—and that’s when I understood how much power a credit score holds.
Why Building Credit Still Matters
Even if you’re not planning to buy a car or get a mortgage soon, your credit score still affects your life. Employers in industries like finance, law enforcement, and government sometimes check credit reports before hiring. You might also need a good score to rent an apartment or get a cell phone plan without a deposit.
Learning how to build credit early means having more freedom and fewer surprises later. A higher score often means lower interest rates and better approval odds.
What Actually Affects Your Credit Score
Most credit scores, including FICO and VantageScore, are based on similar components:
- Payment history (35%): Paying on time is non-negotiable.
- Credit utilization (30%): Try to use less than 30% of your credit limit.
- Length of history (15%): The longer your accounts have been open, the better.
- Credit mix (10%): Having different types of credit helps.
- New credit inquiries (10%): Too many applications in a short time can hurt.
The biggest surprise for me was how fast late payments could lower my score—but also how powerful a year of on-time payments could be.
How to Build Credit Without a Credit Card
This was the part I was most curious about when I started: Can you build credit without a credit card? Turns out, yes—you definitely can.
If you don’t want to use a credit card (or can’t get approved for one), these are smart options:
- Credit builder loans — These are installment loans where your payments are held in a savings account. Your positive payments get reported monthly. Learn more from Experian’s guide.
- Report rent and utility payments — Services like RentTrack or Experian Boost let you add on-time payments to your credit report.
- Student loan payments — If you’ve started repayment, making those payments on time can help build credit history.
I chose a credit builder loan because it gave me structure, a goal, and no temptation to overspend. It fit my lifestyle and budget.
How Cheers Credit Builder Makes It Easier
If you're looking for a tool that makes it easy to build credit while also saving, Cheers Credit Builder deserves a look. Cheers is not a traditional lender or credit card company—it’s a user-friendly installment plan that helps you grow credit on autopilot.
Here’s how it works:
- You choose a repayment plan between $528 and $3,168, with terms from 12 to 24 months.
- Each month, you make a payment that goes into an FDIC-insured savings account.
- These payments are reported to all three credit bureaus—Equifax, Experian, and TransUnion.
- At the end of the term, you get your money back (minus interest), and you’ve built a positive payment history.
Unlike other providers that wait weeks to start reporting, Cheers begins reporting after your first payment clears, usually by the next business day. You don’t need a credit score to apply, and there’s no setup fee or membership charge—just a simple and small interest.
As a grad student, I appreciated how fast and low-pressure the setup was. No credit pull. No surprises. Just a smart way to build credit.
Explore Cheers Credit Builder at Cheers.Credit if you're ready to start your journey.
Final Thought
Figuring out how to build credit can feel overwhelming, but it doesn’t have to be. I started with no score and no clue, but small, consistent steps made all the difference. Whether you’re a student, a new resident, or just starting over, there’s a path for you too.
And you don’t have to do it the old-fashioned way with a credit card. Tools like Cheers make building credit simple, transparent, and more in reach than ever.
References:
Consumer Financial Protection Bureau – Official Credit Score Education
https://www.consumerfinance.gov/
FICO
https://www.myfico.com/credit-education/what-is-a-fico-score
