You can raise your credit score through rent payments, utility bills, secured loans, and becoming an authorized user on someone else's account
A credit card is one path to building credit, but it is not the only one. Credit bureaus track payment history across multiple types of accounts — rent, utilities, car loans, personal loans, and more. If you do not want to open a credit card, or cannot may have access to for one yet, you have other concrete ways to demonstrate that you pay your obligations on time.
The fastest routes are usually rent reporting services (which add your existing rent payments to your credit file), becoming an authorized user on an established account, or taking out a small secured loan from a credit union or bank. Each works differently and takes different amounts of time to show results.
Key Takeaways
- Rent reporting services send your monthly rent payments to credit bureaus, and some landlords report directly without you needing to sign up for a service.
- Becoming an authorized user on someone else's credit card or loan account can raise your score within weeks if that account has a long payment history and low balance.
- A secured loan from a credit union or bank — where you deposit money as collateral — builds credit as you make monthly payments.
- Utility and phone bill payments now count toward credit scores through alternative data reporting, though the boost is usually smaller than traditional credit accounts.
- Payment history is the largest factor in your credit score, so any account you open should be one you can pay on time, every time.
Report your rent payments to credit bureaus
If you pay rent to a landlord or property management company, those payments can be reported to credit bureaus and count toward your score. Some landlords and property managers report automatically. If yours does not, you can use a rent reporting service to add those payments to your credit file yourself.
Services like Experian Boost, RentBureau, and LevelCredit allow you to connect your bank account or upload proof of rent payments. They then report your payment history to the bureaus. Most charge a small monthly fee (typically $5 to $15), though some offer a free tier. The catch is that rent reporting usually takes 30 to 60 days to show up on your credit report, and the score boost is often modest — typically 10 to 30 points — because rent is not weighted as heavily as traditional credit accounts.
Before you pay for a service, ask your landlord or property manager directly whether they already report to the bureaus. Many do, especially larger management companies. If they do not and you want to report yourself, check whether your bank or rent payment app has a built-in reporting feature — some do at no extra cost.
Become an authorized user on an established account
If someone you trust — a family member or partner — has a credit card or loan account with a long payment history and a low balance, you can ask to be added as an authorized user. When you are added, their account history can appear on your credit report, which can raise your score significantly and quickly.
The boost depends on the account's age and payment record. If the primary account holder has been paying on time for years and carries a low balance, you may see a 50 to 100+ point increase within weeks. If the account is newer or has missed payments, the benefit is smaller or nonexistent.
The risk is that you are now linked to that account's activity. If the primary holder misses a payment or runs up the balance, your score will drop too. You do not need to use the card or make payments yourself — just being on the account is enough. Make sure you trust the person and understand their payment habits before you agree.
Take out a secured loan from a credit union or bank
A secured loan is a small loan backed by money you deposit as collateral. You put money into a savings account (usually $500 to $2,500), the bank or credit union lends you that same amount, and you make monthly payments to pay it back. Once you repay it, you get your deposit back.
This approach works because the lender reports your payments to credit bureaus, and payment history is the largest factor in your credit score. A secured loan typically costs you a small amount in interest (usually 5 to 10 percent annually), but you are paying for the credit-building benefit, not borrowing money you need.
Credit unions often offer secured loans with lower interest rates and more flexible terms than banks. Call your local credit union or visit your bank's website to ask about their secured loan program. The process is straightforward: deposit the money, sign the loan agreement, receive the funds, and make monthly payments. Most lenders report to all three bureaus (Equifax, Experian, and TransUnion), so the impact shows across your entire credit profile.
Use utility and phone bill payments through alternative reporting
Services like Experian Boost and Clarity allow you to connect your utility and phone bill accounts so those on-time payments are reported to credit bureaus. Unlike rent reporting, this is usually free. You link your bank account or utility account, the service verifies your payment history, and then reports it to the bureaus.
The score boost from utilities is typically smaller than from a credit card or loan — usually 5 to 25 points — because utilities are not traditional credit accounts. However, if you have no other credit history, every point counts. The payments show up on your report within 30 to 45 days, and the service continues to report future on-time payments automatically.
This option works best as a supplement to other credit-building methods, not as your only strategy. It is most useful if you already pay your utilities on time and want to get credit for doing so.
Get a credit-builder loan from a credit union
A credit-builder loan is different from a secured loan. With a credit-builder loan, the lender deposits the loan amount into a savings account that you cannot touch until you finish paying. You make monthly payments, and once you have paid off the full amount, you get access to the savings account.
For example, you might take out a $1,000 credit-builder loan. The bank holds that $1,000 in a locked savings account. You make 12 or 24 monthly payments (depending on the loan term), and once you have paid it all back, you receive the $1,000 plus any interest the savings account earned. The lender reports all your payments to credit bureaus.
Credit unions typically offer these loans with low interest rates and minimal fees. The monthly payment is usually $50 to $100, making it affordable for most people. This is one of the most direct ways to build credit if you have no credit history or a damaged one, because the lender has no risk — they hold the money the entire time.
Build credit through a car loan or personal loan
If you need to borrow money for a car or other purchase, taking out a loan and making on-time payments is an excellent way to build credit. Installment loans (like car loans and personal loans) are weighted heavily in credit scoring because they show you can manage a larger debt over time.
A car loan typically has a lower interest rate than a personal loan, but both count toward your credit. If you are buying a car, financing through a bank or credit union rather than paying cash will help your score. If you do not need a car, a personal loan from a credit union or online lender can serve the same purpose — borrow a modest amount, make regular payments, and watch your score rise.
The downside is that you are paying interest on money you may not need. This strategy makes sense only if you were planning to borrow anyway. If you are borrowing solely to build credit, a secured loan or credit-builder loan is usually cheaper.
Frequently Asked Questions
How long does it take to raise my credit score without a credit card?
It depends on the method. Becoming an authorized user can show results within weeks if the primary account has a strong history. Secured loans and credit-builder loans typically take 3 to 6 months of on-time payments before you see a meaningful score increase. Rent and utility reporting usually takes 30 to 60 days to appear, with modest score gains.
Will my score go down if I become an authorized user?
No, adding yourself as an authorized user should not lower your score. However, if the primary account holder later misses a payment or runs up the balance, your score will drop along with theirs. Choose someone whose payment habits you trust.
Can I build credit if I have no income?
Yes, but your options are limited. Rent reporting works if you pay rent. Becoming an authorized user requires someone else to add you. A secured loan requires you to have money to deposit as collateral. You cannot take out an unsecured personal loan without income, but a credit union may work with you on a secured loan if you have savings.
Is a secured loan the same as a credit card?
No. A secured loan is a traditional loan backed by your own deposit. A secured credit card is a credit card backed by a deposit. Both build credit, but they work differently. A secured loan has a fixed payment schedule and term. A secured credit card works like a regular card — you can carry a balance and pay interest, or pay it off monthly.
What if I cannot afford monthly payments?
Start with rent or utility reporting, which costs nothing and requires no new payments. If you want to take out a loan, choose one with a payment you can actually afford. Missing payments will hurt your score far more than not building it at all. A $300 secured loan with a $25 monthly payment is better than a $1,000 loan you cannot pay.