Building Credit Without a Credit Card

True or False? The best way to build a credit history is with a credit card.


Many young people think this is true, but it is 100% FALSE!


We have a better way to help you build your credit history, and you don’t even have to buy something. That’s the danger with credit cards. You have to buy something to make regular payments. And if you’re not disciplined enough to pay it off on time, you don’t only build debt, you could ruin the very credit history you are try to build.


A Credit Builder Loan is a much better option for several reasons:


  • You don’t have to buy anything to use the loan
  • The interest rate is far lower than most credit cards (sometimes half the amount)
  • Your monthly payments are always the same
  • The money you borrow sits in an account and earns interest
  • When the loan is paid off, you get the money in that account and the earned interest



Let’s say you take out a $1,000 credit builder loan for 12 months at a rate of 13.50% APR.

Monthly Payment   $89.55
Total of 12 Payments   $1,074.62
Total Interest you pay   $74.62

But remember that the $1,000 you borrowed was placed into a 12-month share certificate. Let’s say the rate on that is 4.749% APY. At the end of 12 months, you’ll have earned $47.49 in interest.


Do the Math

  • You paid $74.62 in interest on your loan
  • Subtract the $47.49 you earned on your certificate
  • The cost to build 12 months of positive credit history is only $27.13 (about $2 a month)
  • You’re completely out of debt in one year


A credit builder loan is a safe and affordable way to build a solid credit history without putting yourself further in debt. Apply for one today.


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