How to Build Credit Without a Credit Card: 5 Simple Ways That Work in 2025

Figuring out how to build credit without a credit card can feel confusing at first, but today’s tools make it much easier than it used to be. Whether you’re new to credit, trying to avoid debt, or simply looking for smarter tools, there are practical ways to establish credit without relying on plastic. In 2025, credit-building will be more accessible than ever.

Here are 5 easy-to-follow ways to start building credit—without a credit card—and tools you can use to take action today.

Method 1: Open a Credit Builder Loan

Credit builder loans are one of the most direct answers to how to build credit without a credit card. Unlike traditional loans, the money is held in a secure account until you finish making monthly payments. This process creates a record of on-time payments, which gets reported to the credit bureaus. 

Steps to get started:

1. Choose a plan with a monthly payment you can handle
   
   
2. Make consistent, on-time payments
   
   
3. Check that the company reports to all three credit bureaus
   
   
4. Monitor your progress using Credit Karma or similar tools
   
   

Credit builder loans work especially well for people with “thin” credit files or no score at all. To learn how they affect your credit, visit MyCreditUnion.gov’s guide on building credit.

A great place to explore this is Cheers, a platform that offers flexible credit builder plans with no credit score required and no setup or membership fees. 

*Cheers is not a bank. Deposit accounts held by partner banks, Member FDIC.

Real example:
John, a 24-year-old with no credit history, signed up for a credit builder plan with monthly payments. After six months, his credit score improved by over 100 points. He didn’t need to open a card—just stayed consistent.

Method 2: Report Rent Payments to the Credit Bureaus

Your rent is probably your most significant monthly expense, but it won’t help your credit unless it's reported. Rent reporting tools let you share your rent history with credit bureaus, which can boost your score if you’ve been paying on time.

How to begin:

1. Use a rent reporting tool such as Esusu or check if your property manager already partners with one
   
   
2. Provide your lease details and payment history
   
   
3. Pay rent on time each month
   
   
4. Check your credit report for new updates
   
   

Many newer credit score models, like FICO 9 and VantageScore 3.0, factor in rental data. For more info on how rent impacts credit, the Consumer Financial Protection Bureau offers an excellent breakdown.

Method 3: Become an Authorized User

Another way to build credit without opening a credit card yourself is to become an authorized user on someone else’s card. You’ll gain credit history from their account, even if you never use the card.

What to do:

1. Ask someone with long, positive credit history and low card balances
   
   
2. Confirm their card issuer reports authorized users to the bureaus
   
   
3. Track your credit activity through AnnualCreditReport.com, which offers free weekly reports
   
   

This strategy is low-risk for the authorized user but only works if the primary account holder maintains good habits. 

For more guidance, refer to Experian’s guide on becoming an authorized user.

Method 4: Use Fintech Tools That Report Payments

In 2025, many fintech platforms will help people build credit by reporting recurring payments or small installment plans. These tools are ideal for anyone looking to build credit without a credit card or traditional loan.

Tools Recommended:

1. Cheers: Lets you choose a fixed monthly payment plan that gets reported to all three major credit bureaus. Reporting starts often within days—a smart way to begin building credit.
2. Kiva: Offers zero-interest microloans funded by a global lending community, helping you practice repayment behavior and build financial discipline.
3. Mint: Helps you stay organized by tracking your spending and sending reminders for upcoming bills, so you never miss a due date.

For more on the types of accounts that build credit, the Federal Trade Commission (FTC) offers helpful advice on spotting safe, legitimate services.

Method 5: Add Utility and Streaming Payments to Your Credit File

You're already paying for your phone, internet, electricity, or Netflix—so why not use those payments to build credit? Some services now let you report these bills to the bureaus.

Steps to try it:

1. Sign up for Experian Boost
   
   
2. Connect your checking or utility accounts
   
   
3. Approve eligible bills such as phone, gas, and streaming services
   
   
4. Watch for updates to your Experian credit file
   
   

This method only affects your Experian score, but it’s still useful for improving your credit history if you have few accounts.

Final Thoughts

If you’ve been asking how to build credit without a credit card, these five steps can help you get started. Tools like rent reporting, credit builder loans, and fintech platforms allow you to grow your credit file with habits you're already managing—like paying rent or keeping up with your bills.

The most important part? Consistency. Make payments on time. Track your progress. Use services that report your activity to all three bureaus. Over time, your credit score will improve—and you’ll get closer to your financial goals without ever needing a traditional credit card.

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