How To Raise Your Credit Score Without Credit Cards: Expert Tips
Think improving your credit score requires a credit card? Nope. Whether you’re avoiding debt or just want an alternative, you have plenty of options to raise your credit score without a credit card. Learn about what goes into your credit score and how you can raise it.
- You don’t always have to open new loans or accounts to raise your credit score. You could become an authorized user or report cellphone payments with Experian Boost to raise your score.
- You can also raise your score with a Chime secured credit card or through a credit-builder loan, but these options require cash up front.
- The best way to raise your credit score is to pay your bills on time, every time. Your payment history makes up 35% of your FICO Score.
Credit score basics
Knowing how credit scores are calculated can help you figure out what areas of your credit need improving. Note that this information applies to FICO Scores, the scoring model used by 90% of lenders.
| Credit factor | What it measures | How to improve without a credit card |
|---|---|---|
| Payment history (35%) | Late and on-time payments | Make current loan payments on time (for your car, student or other loans) |
| Amounts owed (30%) | How much you owe vs. how much credit you have | Pay down your current cards and loans |
| Length of credit history (15%) | The age of your credit accounts | Become an authorized user on someone else’s account |
| Credit mix (10%) | The kinds of credit accounts you have (e.g., credit cards and/or loans) | Use installment loans (like car loans or personal loans) to diversify your credit |
| New credit (10%) | The number of credit inquiries and new accounts you have, and the age of your newest account | Avoid hard credit hits and opening too many new accounts |
How to raise your credit score with existing accounts
It’s possible to raise your credit score without a credit card — and by avoiding taking on new debt or opening a new credit card.
Become an authorized user
Boost your credit score by becoming an authorized user on someone else’s credit card. An authorized user is allowed to use the credit card, but the card and debt stay in the primary cardholder’s name.
There are pros and cons to becoming an authorized user. When you become an authorized user, you generally “inherit” the card’s payment history — so make sure that its holder is responsible with their credit and card use. On-time payments can help raise your credit, and late payments will hurt it.
Report rent and cellphone payments with Experian Boost
Not all bills help you build credit. Your cellphone company probably doesn’t report your payments to the credit bureaus. And your landlord likely doesn’t, either. If your payments are super late, that can affect your credit score, but on-time payments usually won’t help.
Experian Boost is a free app that can help you get credit for on-time payments that normally aren’t reported. There are a few other apps that provide similar services: StellarFI and eCredible Lift, for example. (Unlike Experian Boost, however, these come with a monthly subscription fee.)
Results aren’t guaranteed, but Experian says people who do get a boost see an average increase of 13 points to their credit score.
Keep older accounts open
Unless you’re having a hard time with overspending, consider keeping old accounts open. Closing cards and paying off loans can make your credit score go down, especially if the account is older — doing so will change the length of your credit history.
Almost half of Americans (47%) have a store credit card, according to a LendingTree survey. If you got a store card just for a sign-on reward, make a charge once in a while. Some credit card companies will close your card automatically if you haven’t used it for a certain period of time.
Make all of your payments on time and pay down current debt
Payment history is the biggest factor that goes into your credit score. How much of your available credit you’re using (amounts owed) is the second. Continue to pay off what you owe and if you’re having trouble, call your lender. It might have a hardship program that can help you avoid late payments.
Get free, personalized recommendations on how to improve each of the factors that affect your credit score with LendingTree Spring. We’ll show you how your credit stacks up and what to do to boost your score.
How to raise your credit score with new loans or accounts
Although you’ll have to open a new account, the strategies below can help you raise your credit score without an unsecured credit card.
Use a Chime Visa card for automatic bill payments
Consider a Secured Chime Credit Builder Visa. Yes, this option is a credit card, but it can work more like a debit card. It’s also relatively low risk if you have a tendency to overspend and doesn’t require a credit check.
First, you’ll have to open a Chime account and sign up for a monthly direct deposit of at least $200 — whatever you put in is your credit limit. Turn on the “Safer Credit Building” feature to set the card to automatically draft your credit card payment from your Chime account.
Using the Chime secured card for your regular automatic bill payments (like your car insurance or streaming services) can be an easier way to improve your credit score. Just be sure that you have enough funds in your Chime account to cover them.
According to Chime, after on-time payments, members could raise their credit scores by 30 points, on average.
Leverage your savings account with a secured loan
A secured loan requires collateral. Secured loans can be an option if you have shaky credit, as it’s typically easier to qualify for these loans. Collateral might seem hard to come by, but depending on where you bank, it could be your savings account.
These types of personal loans are called savings- or share-secured loans. Your account serves as your loan limit, and you’ll pay back what you borrowed in equal monthly installments. Secured loans come with interest, so it’s best to use your funds for something essential.
Put money down on a credit-builder loan
A credit-builder loan can also help you raise or build your credit score, especially if you don’t have any current debt. It’s not a credit card, but it does require a deposit.
Essentially, you’ll give the lender money, which it will put in a locked account. Then you’ll unlock the money by making monthly payments to the lender, plus interest. As long as you’re paying on time, you should see your credit score go up as you make payments.
The Consumer Financial Protection Bureau (CFPB) discovered that credit-builder loans are more effective for people without existing debt. People who are debt-free and took out a credit-builder loan saw a higher increase in their credit scores than those in debt — by a whopping 60 points.
Get a personal loan with a cosigner
This tactic isn’t for you if you don’t have a reason to borrow money, but you could raise your credit score by getting a personal loan with a cosigner. A personal loan comes as a lump sum of cash, with no down payment. You usually get 12 to 84 months to pay back your loan, and your lender will report your payments to the credit bureaus.
Rates are generally high if you have bad or no credit, so don’t get a personal loan just to raise your credit score. Prequalify for a few loans, use a personal loan calculator and only borrow if you actually need (and can pay back) the money.
Frequently asked questions
Yes, you can build credit without a credit card. To increase your credit score without a credit card, you could:
- Become an authorized user
- Report rent and cellphone payments with Experian Boost
- Keep your older accounts open
- Make all of your payments on time and pay down current debt
- Use a Chime card, with its “Safer Credit Building” feature turned on
If you’re building credit from scratch, consider reporting rent, utility and cellphone payments with Experian Boost. You won’t need a credit score, but it does require that you have:
- At least one account on your credit report that’s been active for at least six months
- At least one account on your credit report that has been reported to a credit bureau within the last six months
- Not be listed as “deceased” on your credit report (which can happen during credit reporting errors)
You could also get a secured credit card or credit-builder loan. These require an upfront cash deposit.
You can raise your credit score fast without a credit card, but there’s no guarantee you’ll get to 700 in 30 days. You might be able to raise your credit score by 100 points in 30 days, but it depends on where you’re starting, what kind of debt you have now and other factors that are specific to you.
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