Thread: Build credit without credit cards

Some good ideas here for you youngsters and anyone with less than stellar credit. Its tight out there and anything you can do to bump up that beacon score will help!

http://articles.moneycentral.msn.com...dit-cards.aspx

Build credit without credit cards
You don't need plastic to establish credit, but you do need a good credit history even if you don't intend to borrow. Here are 7 tips -- plus 4 traps to avoid.

The fastest way to build or rebuild your credit scores is by using both of the two main types of credit:
Revolving accounts (credit cards, which allow you to build up and pay down debt).
Installment loans (mortgages, auto loans and other debt that's repaid in periodic installments).
But some people can't get credit cards in today's tight environment. Others don't want to use them, often because they don't trust themselves not to overspend or because they don't trust credit card companies.

And just in case your fresh faced and just getting out of Highschool / College / however your just entering the real world - they use your credit score for pretty much everything related to your personal reliability, be it to get car insurance, rent an apartment, or to get a job. They check your Credit History and factor that into their decisions

If your Credit score is too low you may not get that Job, or be able to rent that Apartment.

Trust me, I fucked my credit up for a few years being stupid with Credit Cards in College and understand just how screwed up your life can be with poor credit. I now have a pretty good rating, and my last car loan they practically threw themselves across the table at me. So much better than being told you dont qualify for a shitty apartment because of idiot choices you made years ago.

Hmm, interesting. Thanks for the info. Haven't finished reading it all yet, but some nice info so far.

I wouldnt say thats the end all of information, but it hopefully will get you thinking in the Credit Score direction, its everywhere these days.

One thing they do talk about that I couldnt agree with more; If you have access to a Credit Union JOIN that puppy. My credit union is an absolute joy to work with. Could not be happier with them.

The "authorized user" trick no longer works as it was being exploited. I also know of a service that will be a "loan servicer" for accounts that don't report to the bureaus, so you can get "credit" for them as well. So if you have a cell phone bill, rent, or utilities this company will accept the payment, and pay the bill for you, then report it to the bureaus. Good info though.

shit 15 years ago when i was in college they couldnt care less and gave me all the credit I wanted. Its a scam they ran and likely to some extent still do, mommy and daddy will sweep in and fix up any mistakes their little baby makes so they gave credit to kids like me who had no idea what was up other than I could spend a lot more than I actually had...

My parents said 'We warned you, even tried to help you, this is your mess and youll have to live with the consequences.'

The rules have changed, or will soon. The rules used to be that I could add anyone to my account at any time as long as I had the information necessary, and they got credit as if it were their account. Now, or soon, that will no longer be true unless you were an applicant for the credit as well.