Many people think that a credit card is essential to build a strong credit score.
But the truth is — you can achieve an excellent credit profile even without owning a credit card. Your credit score is based on your repayment history, credit mix, credit utilization and credit age, all of which can be built through other financial products.
Here are the most effective ways to build and maintain a strong credit score without needing a credit card.
1. Take a Small Personal Loan and Repay on Time
A personal loan is one of the easiest ways to start your credit history.
Even a small amount (₹10,000–₹50,000) helps:
Build repayment record
Establish credit history
Show responsible credit behaviour
Just ensure you never miss EMIs.
2. Apply for a Credit-Builder Loan
A credit-builder loan is designed specifically for beginners or low-score individuals.
You pay EMIs first, and receive the amount later — making it a safe way to create a clean repayment track.
On-time payments are reported to credit bureaus like CIBIL, helping your score rise steadily.
3. Use a Secured Loan Like a Gold Loan
Gold loans are easy to get, even without credit history.
Repaying EMIs on time boosts:
Credit score
Credit mix
Loan eligibility in future
Since gold acts as collateral, approval is fast and interest rates are lower.
4. Become an Authorized User on Someone Else’s Loan or Credit Account
If a family member has a good credit history:
They can add you as a co-borrower
Or make you an authorized user
This helps you build credit through their repayment track record.
5. Repay EMIs for Your Existing Loans on Time
If you already have any of the following, you’re already building credit:
Bike loan
Education loan
Consumer durable loan
Two-wheeler loan
Small finance loan
Never miss EMI dates — repayment history contributes 35% of your credit score.
6. Use Buy Now, Pay Later (BNPL) Services Carefully
Some BNPL providers report repayment behaviour to credit bureaus.
If used responsibly, it helps you:
Build a credit trail
Improve score gradually
But avoid multiple BNPL accounts to prevent overdue risks.
7. Check Your Credit Report and Correct Errors
A low credit score may sometimes be due to:
Incorrect loan entries
Duplicate accounts
Wrong personal details
Downloading your credit report every 3–6 months helps ensure accuracy and protects your score.
8. Pay Your Bills on Time (If Reported to Credit Bureaus)
Some fintechs and lenders now report payments for:
Utility bills
Rent
Phone bills
Although not all are reported, timely payments on platforms that share data can help.
9. Maintain Low Credit Enquiries
Avoid applying for too many loans at once.
Multiple enquiries make you look credit-hungry and lower your score.
Conclusion
You don’t need a credit card to build a high credit score.
With timely loan repayments, responsible financial behavior and simple credit-building tools, you can easily achieve a strong score of 750+.
A good score improves your approval chances for:
Personal loans
Home loans
Car loans
Business loans
Lower interest rates
Start small, stay consistent and monitor your credit health regularly.
FAQs
Q1. Can I build a credit score without a credit card?
Yes, through loans, BNPL repayments, and other credit products.
Q2. How long does it take to build credit from zero?
Usually 3–6 months for a visible score and 12+ months for a strong score.
Q3. Is a credit-builder loan safe?
Yes, it has low risk and is designed for beginners.
Q4. Does BNPL help in building credit?
Only if the provider reports data to credit bureaus.
Q5. How often should I check my credit score?
At least every 3 months.
Published on : 13th November
Published by : SMITA
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