Best Things to Buy to Build Credit
International Credit Card Credit Score

Best Things to Buy to Build Credit

Moumita Basu

The ideal purchases to make to increase your credit score are small, everyday items that you may make with a credit card as well as bigger ones like houses and cars that are reported on a monthly basis. As long as you make your payments on time, anything you buy with a credit card or loan eventually helps you develop credit.

Your credit score will still increase even if you only have one open credit card. The fastest way to establish credit is to use 1% to 10% of your credit limit each month. If you are looking for answers or what purchases build credit or what to buy with a credit card to build credit, we have all your answers, keep reading!

Importance of Building a Credit Score in the US

When trying to get the best credit card bonus, the lowest mortgage rates, or even your ideal job, you need to have a strong credit score. Early and persistent credit building is crucial since it affects so many significant life decisions.

You might not be thinking about building credit, but you should. Every time you apply for a new financial product, such as a loan or credit card, the lender runs a credit history check. Only candidates who satisfy specific credit standards, such as having a strong or exceptional credit score, may be accepted.

If you don't have good credit, you can miss out on getting a credit card, mortgage, or personal loan with a low-interest rate and end up paying more over the course of the loan. However, if you build up a solid credit score, you can reduce your interest costs and utilize the money you save to make investments in the future.

Additionally, credit affects more than just your ability to be approved for new financial products. Before making a job offer, some employers may even check your credit history for any potential red flags, such as past-due accounts or accounts that are in collections. Whether they decide to hire you or not could depend on the outcome of their credit inquiry.

In order to portray your finances to a lender or potential employer in the best light, it is crucial to building credit. Your ability to qualify for the greatest financial solutions that can help you save money and accomplish your goals is increased when you have good credit.

How Can Buying Things Improve Your Credit Score?

Simply spending a lot of money on a purchase won't help you improve your credit. However, if you pay using credit, it gives you a chance to demonstrate your ability to manage credit responsibly.

You are able to pay your bills on time. Paying your payments on time is crucial, regardless of whether you utilized a loan, a credit card, or a line of credit to make your purchases. Your credit score is heavily influenced by your payment history.

You can control different credit types. The Federal Reserve points out that a good mix of installment and revolving credit accounts is taken into account by credit scoring algorithms. Adding a new account type to your portfolio might be as simple as making a sizable purchase.

Credit age can be built. Large expenditures could take some time to pay off. The benefit of that is that you can increase your credit age, which is an important component of your overall credit score. The average age of the accounts on your credit report and the length of time you've had any credit accounts can create the difference between a good and a terrible score.

Small Things to Buy to Build Credit

It's not always big good things to buy to build credit, some small things to buy to build credit are regularly using your credit card to pay your phone, internet, or utility bills, such as water and electricity, which can help establish a good credit history and raise your CIBIL score. The debt these expenses put on your credit card can be paid off quickly or in a short period of time because they are typically significantly lower than the costs of buying material products.

What are the Best Things to Buy to Build Credit?

There are numerous approaches to this, but one that works well is to use your credit card to make purchases that you would make anyhow. This prevents you from making unnecessary purchases solely to "build credit," and it also enables you to stick closely to your budget (you obviously need one!). Here is the list of what to buy to build credit

  • Essential Acquisitions (groceries, gas, utilities, etc.)
  • Home
  • Vehicle
  • Utilities and Rent
  • Bank Balance
  • Other Significant Purchases

Let’s know more about what to buy with a credit card to build credit

Essential Acquisitions (groceries, gas, utilities, etc.)

Every month, you'll spend money on necessities, so why not charge them to a credit card so they can help you establish credit? Your credit score will benefit greatly if you can pay off all of these expenses in full each month.


One of the best things to buy to build credit is a home, and each month, mortgage payments are recorded to the credit agencies. Home loans are an excellent strategy to raise your credit score as a result. Obviously, if you can't afford it, you shouldn't purchase a home. You should ideally be able to put down at least 20% of the purchase price.


Car loans are another best things to buy to build credit diversify the items on your credit record and demonstrate your ability to handle large purchases responsibly. Each month, car loans are reported to the credit bureaus. Just be certain to pick a vehicle with manageable monthly payments.

Utilities and Rent

The credit bureaus aren't always informed about rent. However, if you pay your rent on time, you can ask your landlord to sign up with a rent reporting agency, which will enable you to establish credit. Similar to this, initiatives like Experian Boost can assist you in establishing credit for acquisitions like utility, phone, and streaming service costs.

Bank Balance

You can obtain a credit-builder loan from a bank or credit union, however, this isn't really "purchasing." In essence, the bank or credit union deposits money into your account, and you make installment payments on that amount each month until you've paid it off plus interest. Your monthly payments will be reported to the credit reporting agencies by the loan's issuer. You have access to the bank account once you have completed all of your payments.

Other Significant Purchases

Both necessary expenditures like home repairs and medical bills as well as luxuries like holidays can fall under this category. You may seek a personal loan or charge these kinds of expenditures to a credit card, possibly one with a 0% introductory APR.

Credit usage requires discipline and a strong commitment to achieving your stated objectives. The bottom line is anything you charge to your credit cards will improve your credit score as long as you pay them off completely each month. Focusing on charging your regular monthly payments has the goal of giving you a reliable foundation from which to start your credit-building journey, one that will most likely end in success. One of the good things to buy to build credit is Zolve Azpire Credit Builder Card which will not only report to three credit bureaus but also give exciting rewards and cash back.

Frequently Asked Questions(FAQs)

What purchases help build credit?

The ideal purchases to make to increase your credit score are small, everyday items that you may make with a credit card as well as bigger ones like houses and cars that are reported on a monthly basis. As long as you make your payments on time, anything you buy with a credit card or loan eventually helps you develop credit.

Do little purchases increase credit?

If you do have a credit card, using it frequently for little purchases, maintaining low balances, and making on-time payments will gradually raise your credit score.

Can someone with a 500 credit score get a car loan?

With a credit score of 500, it is still possible to obtain a car loan, but it will cost you. According to the Experian State of the Automotive Finance Market report, people with credit scores of 500 or lower obtained an average rate of 13.97% for new-car loans and 20.67% for used-car loans in the second quarter of 2020.

What is the quickest way to increase your credit score?

The most effective things you can take to improve your credit include making on-time payments on your bills and paying off your credit card balances. Positive actions can improve your credit quickly because issuers report your payment history to the credit bureaus every 30 days.

What shouldn't you pay using a credit card?

Don't finance the following costs to credit cards:

  • home expenses and goods.
  • little extravagances or travel.
  • Cash advances, balance transfers, or down payments.
  • medical expenses
  • Wedding.
  • Taxes.
  • Tuition or student loans.