Establishing credit without a credit card isn’t impossible, regardless of what the credit companies want you to think.

It is possible to build your credit score by just managing what you owe properly and in a timely manner.

Read on to learn how to build credit history without a credit card.

Pay Down Your Student Loans

If you went to college, you likely have some debt from your schooling to pay off. Student loans show up on your credit history.

If you are late or miss payments, this affects your credit score. Likewise, on-time payments over time help build up your credit. 

And, the faster you pay off this debt the better. You can create a DIY debt management program to help you pay off your debt. 

Your credit rating is partly good payment behavior. But it is also about your debt to income ration. So the less you owe, the better for your rating.

Make Your Rent Payments Count

There are various rent-reporting services available such as RentTrack. These services input your bills onto your credit report. 

This adds one more payment to your credit history. Your rating will reflect your on-time rent payments.

Although not every credit score company counts these rent-reporting services, some do. And it certainly can’t hurt your credit.

Get a Car Installment Loan

As far as loans go, car loans are the easiest to be approved for. If you need a car, look for a good deal for a loan. Not all rates are terms are equal so good research is important.  

If you can’t get approved for a car loan on your own, find a co-signer to help you. 

Then, just make sure you make your payments each month on-time without fail. 

Make sure that you adequately budget so that you can afford the loan repayments. Carefully look at your paystubs or create your own at

Consider Non-Profit Lending Circles

Various non-profit organizations provide ways for people to build credit by offering financing options.

Organizations such as the Mission Asset Fund provide affordable loans and report positive payment history to the credit bureaus on your behalf.

Even a small loan, paid back consistently can boost your credit score.

Apply for a Secured Loan

A secured loan is a loan that you finance yourself. That makes it risk-free for your lender.

Secured loans work just the same way as a secured credit card.  You’ll simply deposit a set amount into your loan’s bank account. You can then “borrow” up to that amount that you deposited.

You can’t use more than what you deposited. And if you fail to make the loan repayments, your lender gets to keep your deposit.

Even though you are using your own money, it’s a great way to build credit. In fact, secured loans are often called credit-builder loans.

Before you apply for a secured loan, ask the lender to confirm that your on-time payments will show up on your credit report.

Final Thoughts on Establishing Credit

There you go! A few simple ways that you can work on establishing credit without a credit card.

Next, check out these 10 ways to improve your mindset about money.