top of page

Building Credit Without Using a Credit Card: Tips You Can Try

Although there are many problems that may sometimes arise from using a credit card, there may also be sound reasons to use one. The main advantage of using a credit card (and making sure to remain in good standing with this revolving credit line) is that as you use it and keep up with the payments, you are concurrently building your credit score.

You will need to establish a good credit score for many reasons. For starters, it is an important component of applying for a mortgage, applying for loans and getting favorable interest rates on any future loans. However, you may be wondering if there is a way for you to achieve this without having to use a credit card. This hesitation may be understandable, because it may be tempering to spend money and just pay the amount later on.

Fortunately, there are a number of other ways to improve your credit without the use of a credit card.

How Can I Build My Credit Score Without a Card?

Building a credit score revolves around establishing behavioral patterns that prove that you are prompt in paying your debt. Although using a credit card (and paying all your debt from it each month) will be an excellent way to reach this goal, there are many who do not feel comfortable using this credit building option. Here are some other ways you can use to build your credit:

1 - Consider a Secured Credit Card

You may be wondering what these are. Although these may function similarly to regular credit cards, they are not the same. Secured credit cards usually require users to make a deposit, which will act like a collateral. This deposit is usually the same amount as the credit card limit. The deposit will represent your willingness to pay and at the same time help you avoid going into too much debt if you aren’t confident about your ability to keep up with payments.

2 - Apply for Credit Builder Loans

These loans are a great option that will help you build your credit as you go along. Credit builder loans will not be disbursed immediately, unlike other personal loans. They will only be released to you once you have started making payments on them.

3 - Get Your Monthly Bills to Count Toward Your Credit Score

Lastly, using your monthly bills and expenses as a way to prove that you are a good payer will be another way to improve your credit score! You will need to report your monthly bills and payments to your local credit bureau for them to be included in your credit report.


If you do not want to have a credit card or use one to establish good credit, that’s okay! If you have read this far, you already know that using credit cards is not the only way to successfully build your credit score.

No matter where you are in your financial journey, note that these credit building options will work more effectively if you start early, a long way from applying for your first mortgage or first big loan. Having a high credit score will help determine your financial future. Starting early will help you make sure that you will be able to haggle and get reasonable interest rates on the loans you will apply for in the future.

If you are looking for loan options to help you establish your credit score or to help your financial needs be met, come to Mid-Town Finance Company! We offer personal loans in Birmingham, AL as well as a variety of personal loan sizes to fit your needs. We will work to review our different options, and upon approval put clients on an affordable payment plan. Call 205-327-5626 to make an appointment today!

15 views0 comments
bottom of page