Strategies for building credit without using a traditional credit card

Another approach is obtaining a loan. For those with limited credit history, getting a co-signer can reduce interest rates. Alternatively, individuals can secure loans independently but may face higher interest rates. Credit builder loans are also an option; these are specifically designed to help people build their credit. The lender holds the loan amount in an interest-bearing savings account until it is fully paid off.

Reporting other types of payments like rent or utility bills can also help establish payment history with credit bureaus. Services such as Experian Boost allow users to add bill payments to their reports, potentially enhancing their scores. However, this service only affects Experian reports and not TransUnion or Equifax.

Ultimately, while building credit without a card might seem challenging, there are various methods to explore that cater to different needs and situations.