Getting a credit card and paying it off every month is an efficient way to build credit but it's not the only way.
Avoid high interest rates when you are not confident in paying your balance back in full with these alternatives.
1. Use rent and utility payments: Leverage the power of your monthly payments. Report your payments to bureaus.
2. Get a personal loan: Use your existing score to get a small loan. Diversify your credit mix and pay on time.
3. Get a car loan: Paying it back on time month over month improves payment history without very high interests.
4. Credit builder loan: The short-term loan helps you show you are paying regularly on time and will boost your score.
5. Pay back student loans: If you owe over $20,000, chip away at the debt and build credit with regular payments.
These regular payments get reported to the three major credit bureaus Equifax®, Experian®, and TransUnion®.
Making payments on time will show an improvement in your credit score, but ensure you are prepared to pay on time.