How to Build Credit Without a Credit Card

You can build credit in Canada without a traditional credit card.

Lenders mainly care about one thing: do you borrow and pay back on time—it doesn’t have to be through a card.

Start With KOHO Essential

Even without a credit card, you still need a solid system for spending, saving, and building credit.

With KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Ways to Build Credit Without a Credit Card

1. Use Credit Building Programs

Tools like KOHO’s Credit Building are designed specifically to help you add positive history without using a traditional card.

You pay a small, fixed amount each month, and that on time behaviour is reported to the credit bureaus.

2. Pay Loans On Time, Every Time

Any loan in your name that gets reported—like a car loan, student loan, or personal loan—can help build credit if you:

• Make every payment on or before the due date

• Avoid letting accounts fall behind or go to collections

3. Keep New Applications Limited

Even without a credit card, applying for a lot of credit at once can make you look risky. Only apply for what you truly need.

4. Check Your Credit Report

Request your credit report and:

• Make sure your information is accurate

• Watch for errors or unknown accounts

• Track your progress as you build

Fixing mistakes can give your score a boost without taking on new products.

5. Build Good Money Habits First

Your credit life is much easier if your day-to-day money is under control:

• Use KOHO Essential to organize income, bills, and savings

• Avoid relying on high-interest products

• Add credit building tools only when your budget can support them comfortably

Over time, that combination—clean spending, on time payments, and structured credit building.

This can grow your credit, even if you never touch a traditional credit card.