How to build credit without a credit card | Chase (2024)

FAQs

Can you build credit without a credit card? ›

You can also build credit simply by paying all your bills — including loans, rent, and utilities — on time. Doing this, you'll typically see an increase to your score after about six months, though the longer you pay on time, the more your score will grow. It may take several years to achieve a good or excellent score.

There isn't a set credit score that each person starts out with. Instead, if you don't have any credit history, you likely don't have a score at all.

A typical debit card doesn't help build credit, because it draws on your own money instead of a line of credit from a lender. Credit involves borrowing money — often through a loan or credit card — that you pay back later as agreed, usually with interest.

Starting with zero credit history, you can establish credit in as little as six months. Achieving a "good" credit score of 700 or better usually requires making timely payments for at least 18 months to two years, but it's possible to find shortcuts.

Unlike your mortgage or car payments, paying your cellphone bill regularly each month alone may not help increase your credit score. Typically, cellphone providers don't report your payments to the bureaus — though newer services like Experian Boost can help you manually add your cellphone account.

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

But your credit score won't start at zero, because there's no such thing as a zero credit score. The lowest score you can have is a 300, but if you make responsible financial decisions from the beginning, your starting credit score is more likely to be between 500 and 700.

"Paying rent can build credit if your payments are reported," says Rod Griffin, senior director of consumer education and advocacy for the credit bureau Experian. "Unfortunately, that's not the norm, as most landlord and rent management companies don't report rent payments."

Fizz is the best option for college students looking to build their credit and earn rewards without the hassle of applying for and managing a student credit card. Fizz has no interest rates or hidden fees, and we don't check your credit.

Do credit builder cards actually work? ›

A Credit Builder Credit Card works to steadily increase your credit score, as long as you continue to make payments every month. If you miss payments to your credit card, or have issues with other debts, this can have the opposite effect, reducing your credit score instead.

Instead of starting from the bottom, you'll actually start with no credit score instead — and that's not as bad as you might think.

Paying cell phone, rent and utility bills can help you build credit if your on-time payments are reported to the credit bureaus. But even if they're not directly impacting your credit, it's a good idea to pay all your bills on time if you can.

Having no credit history means there is no information about your credit usage reported to the credit bureaus. Therefore, your credit score can't be generated and does not exist. This happens when you've never borrowed money before, such as a credit card, mortgage, or car loan.