How to build credit without a credit card

Many people, especially students, can't be blamed for wondering how they should be expected to build credit without a credit card. It can be a confusing state of affairs when you need a good credit score to get a loan or credit card, but didn't have either of those previously in order to help you build credit.

There are number of ways in which you can build credit without either property loans or credit card bills to pay back:

1. Get a secured credit card
A secured credit card is easier to get than a regular one, but can still help you build your credit, according to Tulsa NBC affiliate KJRH-TV. They work by requiring you to make a deposit before you can use the card. The deposit you make then becomes your limit. From then on you can use the card like a regular one in order to build a payment history. As time goes, if you make your payments on time consistently, the card issuer may grant you a non-secured card in addition to giving you back your deposit. If the bills aren't paid on time, the issuer will simply keep the deposit. 

2. Use an alternative credit score
Alternative credit scores use forms of payment not typically accepted by traditional organizations in order to provide a more complete picture of your credit history, noted Bankrate. These scores may take into account various regular bills such as apartment rent and utilities in order to show to lenders your financial responsibility. 

Users can sign up for scoring models such as PRBC, or Payment Reporting Builds Credit, in order to use anything from child care payments to phone bills in order to show that traditional credit scores don't always provide the most thorough description of one's fiscal care. 

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