How to Buy Things Online Without a Credit Card

Using a credit card responsibly is the best way to build credit. After all, credit cards are easy to get, they don't require you to incur debt, and they report information to the major credit bureaus on a monthly basis.

But a credit card is not the only tool for the job. And that's important because many people are understandably hesitant to use credit, for fear that they will overspend and rack up debts they cannot afford to repay.

There are actually a few different ways to build credit without a credit card. And we'll explain each of your options below.

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You can book a hotel room without a credit card by using a debit card in most cases. Many hotel chains will also accept prepaid cards, though they are more likely to do so at check-in or check-out than at the time of booking.

Typically, you cannot make a hotel reservation with cash, a personal check or a money order. These payment options are usually reserved for paying your final bill, as hotels generally require a payment card to secure your reservation and will often require a deposit on that card.

Payment Methods Accepted by Most Hotel Chains

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You may think you need a credit card to purchase an airline ticket. But a debit or prepaid card will work just as well. And your options may even expand to cash and checks if you book your flight through a travel agent or if you purchase your ticket at an airport ticket counter.

This may surprise you, but that's because most people assume the rules for renting a car and booking a hotel room also apply to reserving a flight. However, airlines do not apply a hold to your payment method and are therefore less particular about how you book and settle up.

With that being said, there is some differentiation among the major airlines' payment policies, particularly regarding the use of cash and personal checks. Before booking your travel, check out our breakdown of the payment methods accepted by the 10 largest U.S. airlines — as well as our tips for buying and saving on airfare.

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Yes, you can typically use a debit card, a prepaid card or even cash to rent a car. However, each rental company has its own rules about acceptable payment options – which often vary by location – and not paying by credit card often carries certain ramifications.

For more on which particular payment methods you can use with each rental company as well as a breakdown of their policies and potential pitfalls you may encounter, continue reading below.

1. Payment Options by Car Rental Company
2. Tips for Renting a Car Without a Credit Card
3. How to Rent a Car with Bad Credit
4. Detailed Policies By Rental Company

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You can have a credit score without a credit card if you've taken out a loan, had rent payments reported to the major credit bureaus, or fallen behind on other bills. A credit score is just a way of summarizing the contents of your credit reports. And in addition to information about any credit card accounts you've had in the past 7 years, credit reports contain info about other loans and lines of credit you've used as well whether you've been sent to collections or sued for amounts owed. Unpaid alimony and child support also are noted on credit reports, as are tax liens. So even without ever using a credit card, you still could have a credit score if you've otherwise borrowed money or failed to pay some key bills. 

You can see if you have a credit score for free on WalletHub, the only site with free daily updates. The fact that it's possible to have a credit score without a credit card might mean you already have a rating. But if you don't have a score, or just want yours to be higher, you really should get a credit card. Having an open credit card account is the most efficient, inexpensive credit-building option available. Just consider the alternatives.

Here are the best ways to get a credit score without a credit card:

• Make rent payments: Ask if your landlord reports your monthly rent payments to the credit bureaus. If they don't, you can sign up for a service like PayYourRent.com that will ensure you get credit for paying on time. 

• Pay your student loans: If you took out loans to pay for college or vocational training, consistently paying them on time will build up your credit.

• Get an auto loan: You can get an auto loan with limited or bad credit history, but your interest rate and car insurance premiums will be fairly high.

• Get a credit-builder loan: Some banks and credit unions offer small loans specifically designed to help people with no credit build their history. You may have to offer collateral in order to get one.

You can have a credit score without a credit card if you've otherwise borrowed money, had a landlord report your payments to the credit bureaus, or failed to pay bills. But applying for the right credit card, like an easy-to-get secured card, is one of the cheapest ways to start building your credit history. And if you're not able to get a credit card in your own name, you may be able to find someone who will add you as an authorized user. This will also help you build credit.

No, you do not need a credit card for a hotel room. You can book hotel reservations at most major hotel chains using debit cards, and a few of the bigger brands such as Marriott also accept prepaid cards as a form of payment. You may be able to pay in cash, too, but you'll still usually need to provide a credit or debit card for the hotel to have on record. It's unlikely that any of the major hotel chains will accept money orders or personal checks.

Keep in mind that some hotels, especially luxury brands, only accept credit cards. So to avoid payment problems, it's a good idea to have a Visa, Mastercard, Discover, or American Express credit card with you while traveling.

Hotels prefer credit cards because the holds and charges generally won't be declined due to insufficient funds, since credit card charges are taken out of the card's credit limit rather than directly out of the customer's bank account. This is useful when hotels need to charge customers after they leave, which could happen, for instance, if the hotel discovers damaged or stolen items.

The Bank of America online shopping category includes bookstores, clothing stores and department stores, among others. This category gives you rewards for purchases made online or with a mobile app from merchants such as Amazon, Apple, Best Buy, Etsy, Groupon, Macy's, Target, Ticketmaster and Walmart. Keep in mind that the online shopping category list is not exhaustive. Different types of purchases may be eligible as well.

Here is the Bank of America online shopping category list:

• Bookstores
• Clothing and Apparel 
• Department Stores 
• Discount Stores
• Electronics
• Specialty Retail Stores
• Sporting Goods

The Bank of America online shopping category is one of the bonus rewards categories that you can choose for the Bank of America Customized Cash Rewards for Students, Bank of America Customized Cash Rewards credit card  and Bank of America Custom Cash Secured Card. You can also find it as a bonus-category choice on some of BofA's co-branded credit cards like the Pink Ribbon™ Credit Card.

You should keep in mind that there are several types of transactions that are not eligible for the Bank of America online shopping category. Those include payments to insurance companies, utilities, schools, hospitals and more.  

Merchants excluded from the Bank of America online shopping category:

• Doctors and Hospitals
• Government Services and Taxes
• Insurance
• Membership Organizations
• Schools
• Utilities
• Other non-retail services

These lists are not comprehensive, as Bank of America does not control how individual merchants are classified by the credit card networks. Each merchant has a "merchant category code," which is assigned by the card networks, and that code determines which general credit card rewards category a purchase falls into.

The Bank of America Customized Cash Rewards credit card online shopping benefit is an offer for 3% cash back on select online and mobile app purchases. Online transactions with a merchant category code for bookstores, discount stores, electronics and sporting goods, among others, qualify for bonus cash back in the online shopping category.

Bank of America Customized Cash Rewards credit card Online Shopping Category Details:

• Bookstores
• Clothing and Apparel
• Department Stores
• Discount Stores
• Electronics
• Specialty Retail Stores
• Sporting Goods

Online shopping is one of the Bank of America Customized Cash Rewards credit card's six 3% cash back categories, along with gas, dining, travel, drug stores, and home improvement / furnishings. You can choose one category from this group and earn bonus cash back on the first $2,500 spent each quarter. The quarterly limit covers combined purchases in your chosen category and at grocery stores and wholesale clubs, which offer 2% cash back.

How To Choose A Bank of America Customized Cash Rewards credit card Cash Back Category

Before you can earn bonus cash back on online shopping, you will need to change your chosen 3% cash back category to online shopping, either through your online account or on the Bank of America mobile app. Gas is the Bank of America Customized Cash Rewards credit card's default bonus category, and it will remain there until you change it. You may keep online shopping as your chosen category, or you can select one of the other 3% cash back categories once every calendar month. You're limited to one 3% cash back category at a time.

Purchases in any of the bonus categories that exceed the $2,500 quarterly limit, along with non-qualifying purchases, will earn the card's base rate of 1% cash back. Online purchases related to doctors and hospitals, schools, insurance, utilities, government services, taxes, and other non-retail services are among the non-qualifying transactions.

Yes, Chase Freedom Flex is good for online shopping because it offers lots of rewards for making online purchases. More specifically, this card offers 1 - 5% cash back on purchases. On top of that, the Chase Freedom Flex card comes with Mastercard World Elite benefits that help you save money while shopping online.

How to Use Chase Freedom Flex for Online Shopping

1. Keep Track of the Rotating Bonus Categories

Chase Freedom Flex gives 5% cash back on up to $1,500 spent in rotating quarterly categories that often include online retailers like Amazon, Target, or Walmart. In addition, streaming services and mobile payment apps like Google Pay or Apple Pay are occasionally included in the rotating bonus categories. 

2. Make Use of the Mastercard World Elite Benefits for Online Shopping

What makes the Chase Freedom Flex card especially good for online shopping, though, is that it gets Mastercard World Elite benefits. This means cardholders get discounts at Fandango, as well as a complimentary ShopRunner membership for free 2-day shipping from tens of online retailers.

3. Shop Through Chase

Chase Freedom Flex cardholders can also use the “Shop through Chase” feature to earn extra cash back when shopping online with over 350 participating merchants. To use the “Shop through Chase” feature:

1. Log in to your Chase account on the Ultimate Rewards website and select the Chase Freedom Flex card.
2. Click the three lines at the top left and choose “Earn Bonus Points” from the menu. You'll then be able to see any available “Shop Through Chase” deals.
3. Select a retailer to be redirected to its official website, and shop normally.

If you check out with your Chase Freedom Flex card, you'll receive bonus rewards on your purchases.

4. Pay with Chase Freedom Flex Points at Amazon

Finally, when shopping at Amazon, cardholders can even buy certain items with rewards points by linking a Chase Freedom Flex card to their Amazon account.

Yes, you can get a virtual credit card without a credit card, so long as it is tied to an existing bank account that already has funds in it. Some banks will create virtual cards for you, and you can add your debit card to a digital wallet or use one of several online services that create virtual cards.

A virtual card that is tied to a bank account will generate random information to mask your actual account or debit card number, but using a credit card is still the most secure way to shop online. Regardless of whether you're using a virtual card, credit card issuers offer $0 liability on fraudulent purchases, which is only the case for some debit card transactions.

You can learn more about how virtual credit cards work on WalletHub.