How to build a credit score without a credit card | Credit Help India

How to build a credit score without a credit card

All Blogs Article

How to build a credit score without a credit card

Tuesday, July 2, 2024


Building a solid credit score is like creating a foundation for your financial future. It opens doors to better interest rates & easier loan approvals. But what if you don't have a credit card to kickstart your credit journey? Don't worry – you're not alone, and building a credit score without a credit card is not as tricky as it may seem.

Also, keep in mind one thing: people with perfect credit scores have 3 things in common, and not any of them is having a credit card:)

From paying bills on time to managing different types of credit responsibly, there are numerous ways to build your credit score without relying on a credit card, we will give you some practical strategies that anyone can use, whether you're a recent graduate, a cash-only enthusiast, or simply someone who prefers a card-free lifestyle, read this blog till the end and get all your answers solved.

What is a credit score?

“A credit score is nothing but 3 three-digit number that sums up your credit history”

This 3-digit number will tell how well you handle your finances, while it is also crucial because it reflects your credit history, showing if you've been good at paying bills and managing your money. So, whether you're eyeing a loan or dreaming of a new apartment, your credit score is the key to making those dreams come true.

According to recent statistics from the Credit Information Bureau of India Limited (CIBIL), around 79% of loans approved by banks in the country are for individuals with a CIBIL score of 750 or above, indicating good credit.

What are the ways to build a credit score without a credit card

1. Take a small loan

When you take out the loan, the lender reports your payment history to the credit bureaus. Making on-time payments demonstrates responsible financial behavior, boosting your credit score over time.

Start small to keep things manageable, and choose a loan amount that you can comfortably repay. Remember, the key is to make timely payments, as this positively influences your credit score.

2. Regular bill payments

When it comes to building a credit score without a credit card, staying on top of your regular bills is a game-changer. Your payment history has a significant impact on your credit score, and timely payments show lenders that you're responsible for your finances.

This includes payments for utilities, rent, and any other monthly bills you might have. Ensure that these payments are made on or before the due date. Late payments can negatively affect your credit score, so being punctual demonstrates reliability and financial discipline.

3. Reporting rental payments

One effective way to build a credit score without a credit card is by having your rental payments reported to credit bureaus. Typically, landlords do not automatically report your rent payments, but you can take steps to make sure they do.

You can use services like rental reporting platforms or work directly with your landlord or property management company. These services verify your rent payments and report them to credit bureaus, helping to establish a positive credit history. When you consistently pay your rent on time, it reflects positively on your credit report and can improve your credit score over time.

4. Maintain stable employment

Maintaining stable employment is a powerful way to build your credit score without relying on a credit card.

When lenders assess your creditworthiness, they often look at your employment history to measure your financial stability and ability to repay debts.

5. Take a peer-to-peer lending loan

Peer-to-peer lending, often known as P2P lending, is a platform where individuals can borrow money directly from other individuals without involving a traditional financial institution.

Now, how does this help your credit score? Successfully managing and repaying a P2P loan denotes your ability to handle credit responsibly, where India's Domestic Credit increased 13.5 % YoY in Nov 2023, compared with an increase of 13.2 % YoY in the previous month.

6. Join as an authorized user on someone else's credit

Find a family member, friend, or someone you trust who has a good credit history and is willing to add you as an authorized user on their credit card. The primary cardholder needs to contact their credit card issuer and request to add you as an authorized user.

A credit card will be issued in your name, linked to the primary cardholder's account. However, you won't be responsible for the payments or account management. Once added, the credit card's positive payment history will be reported to the credit bureaus on your behalf. This can help build your credit history.


Building a credit score without a credit card may seem tricky, but it's not impossible. You can ask someone you trust, like a family member or friend, to add you as an authorized user on their credit card. Additionally, consider other options like credit builder loans, and secured loans, and make sure your rent and utility payments are reported to credit bureaus. It's like taking small steps to show you can handle credit responsibly.

Just remember, building credit takes time, so be patient and make sure to always pay your bills on time. With good habits, you'll be on your way to a solid credit score, even without a credit card. If you're looking for guidance on building your credit score without a credit card, consider contacting Credit Help India.

Check Your Free Credit Score Now

Your Data Is Safe With Us.

Keeping your data safe and secure is a top priority for us and we are committed to it. We have implemented  256 bit Secure Encryption SSL to ensure data security and it is validated by Go Daddy Secure Certificate Authority.