It's a simple (self explanatory) question really im just out of high school and i want to build credit WITHOUT getting a credit card (its the last option for me).
2006-08-22 09:39:05 · 9 answers · asked by victorvandort225 1 in Business & Finance ➔ Credit
Good idea.
Why not a credit card ? Cause of the debts ?
If it's the reason, get a prepaid Visa or Master Card.
2006-08-22 12:47:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You have to build a history. You can only build a history by paying back money you borrowed on time. This must be for a period of at least 6 to 12 months. You should have at least 4 lines of credit open - be they credit cards, loans or charge cards.
You should get a credit card. There is nothing stating that you have to use all of the money. Actually, for a good score you should try and never borrow more than a third of the funds available to you. Use it once a month and promptly pay it and then you will never have to pay the interest on it. But don't get a card if you will never use it. Not using a card lowers your score. All the people that tell you just to cut up a card and forget about it are way off! It must be cancelled.
Is it that you can't get approved for a credit card? A normal card is an unsecured card. Try a "secured" card: you have to put up the money for an institution to lend to you and can only borrow as much as you put up. The rates are high and their is an annual fee, but if you pay your bill for your a year you will develop a history and then be able to be approved for real cards.
Learning about credit is not hard. Go to bankrate.com, yahoo finance or about.com. Bankrate has tips on finding a secured card.
2006-08-22 17:13:13 · answer #2 · answered by Think.for.your.self 7 · 0⤊ 0⤋
The ONLY way to build credit rating is to borrow money and pay it back on time. Either a car loan or a credit card is the easiest to get. Make sure you pay off your balances every month and don't get suckered into "special deals". It's easy to ruin your life with buying things on credit. You'll end up paying double or MORE for everything you buy.
2006-08-22 16:51:32 · answer #3 · answered by Danger, Will Robinson! 7 · 0⤊ 0⤋
If you have a deposit account at a bank or credit union start there.
Go to the branch or main office and speak to a manager. Ask to borrow the minimum amount on a personal loan. It could be as little as $1,000 or as much as $2,500. Tell the manager you want to borrow the money and invest it in a certificate of deposit for 18 - 24 months. Then you will use the CD as collateral for the loan. You make monthly payments and at the end of the term the CD and the interest earned is yours. The bank has virtually no risk. The collateral is a cash instrument that they hold.
Good luck!
2006-08-22 16:49:23 · answer #4 · answered by Adios 5 · 1⤊ 0⤋
You HAVE to show payment history, and you need two types: Revolving (Credit Card type) and Installment (car loans, etc.)
If you dont want a major card (Visa, Discover, etc) that you'll be tempted with, get something like a Victoria Secret or Sears or what not. These generally have higher interest rates, but they also start with low limits like $100. And if you REALLY dont want the bill, you can go shopping, charge it on the card, and pay the card off AT THE SAME REGISTER.
If you REALLY REALLY dont want to do that, get a small loan for a car or what not-- but to have really good credit, you need both CC's and Installment. ... but you need to get one or the other to get you started.
2006-08-22 16:51:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you are trying to build credit and decide to go with a credit card make sure that you try to stay below 40% of the limit. From what I understand, a large portion of the score is capacity.
Otherwise, vehicle loans, signature loans, recreational vehicle loans...you need something that will give you a repayment history.
Also, if you are going for a mortgage at some point..try to have at least three tradelines. It will make the process a lot easier for you.
2006-08-22 17:14:52 · answer #6 · answered by hoddin 2 · 0⤊ 0⤋
You can raise your credit by putting anything in your name. A new car, house, any other bills and credit card is not your only option. But make sure you pay your bills on time.
2006-08-22 16:46:55 · answer #7 · answered by Emily W 1 · 0⤊ 0⤋
the only way is to pay your bills on time-start with a credit card and only use it to buy small amounts( something you can pay when you get your bill) and self control or you will be in debt
2006-08-22 16:52:32 · answer #8 · answered by gabby 5 · 0⤊ 0⤋
start off with saving, checking, have a car in your names and store credits
2006-08-22 17:07:23 · answer #9 · answered by samdrian 4 · 0⤊ 0⤋