Don’t Have a Credit Card: Here’s How to Build Credit Without One

Credit is crucial! Although saving money and paying off your debt are two of the most important responsibilities you must fulfill to attain financial stability, you mustn’t forget about building credit. As part of your financial power, credit can help you get the things you need, such as a loan, credit card, or other financial products.

How Credit Can Impact Your Life

Some companies tend only to approve individuals who meet specific credit requirements, such as a good or excellent credit score. If you have bad credit, you may end up missing out on various opportunities to save on costs, like a mortgage, personal loan, or credit card with lower interest.

Besides your ability to qualify for new financial products, credit also influences other areas of your life. To check for potential red flags, some employers may check your credit report to determine whether to extend a job offer or not.

If you want to present your finances to a lender or future employers in the best way, you must not only edit your resume or prepare well for an interview but also build credit! With a good credit score, you’ll be able to enjoy various benefits and make better decisions for your finances and your life.

Building Credit Without a Credit Card

When it comes to building credit, credit cards are a great tool as they’re easy to use, offer flexibility, and even provide rewards from time to time. However, although the go-to for building credit, not everyone has one or plans to get one because of the troubles involved in qualifying for it.

Fortunately, you can still build credit even if you don’t want a credit card or have difficulty qualifying for one! Read on below to find out the other options for building credit:

1. Take Out a Credit Builder Loan

One way to build credit without a credit card is to take out a credit builder loan. This is quite similar to a personal loan, mortgage, and auto loan, where you have to pay back what you owe every month.

However, unlike a typical loan, your lender will place the total amount into a secure account instead of granting you access to cash upfront. With a credit builder loan, you make a fixed payment monthly until you’ve paid off the money owed and then get the entire amount back.

Since you’re making extra payments with a credit builder loan, you’re able to build credit and boost your credit rating!

2. Get a Personal Loan

Besides credit builder loans, a personal loan can also help you build credit. Although this type of loan usually has a higher annual percentage rate than credit builder loans, it can help establish a credit starting point.

Don’t worry if you have no or bad credit—some lenders will still offer you unsecured personal loans. However, you will most likely be charged a higher interest rate than others since you don’t have an established credit history.

3. Apply for an Auto Loan

Most auto loan dealers report payments to the credit bureaus, so you can build your credit by paying off this type of loan. As long as you make on-time payments, car loans can positively impact your credit score.


When it comes to maintaining financial stability and buying new financial products, you must have good credit! Fortunately, you can get your credit rating back on track in various ways. Make sure to make payments on time so that you can be financially secure and live life without much worry!

Are you looking to build credit using a ,personal loan? Then, apply for our loans at Opelika Finance! Whether you are looking to build or rebuild credit, consolidate a few bills, few bills, or are simply caught in a bind, we try to make the borrowing process quick and simple. Apply now!