Mar
25
-doozer- asked:
I’m 27 and have always paid everything with cash. I have always been a strong believer in staying away from credit cards but would like to build my credit for the future. How can I achieve this?
BILLIE
I’m 27 and have always paid everything with cash. I have always been a strong believer in staying away from credit cards but would like to build my credit for the future. How can I achieve this?
BILLIE
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3 Responses to “What is the best way for me to build my credit without getting credit cards?”
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AGUSTIN
Get a small auto or personal loan from your bank. Make all your payments on time, wait a while, and repeat…
DAMIEN
As long as you have the discipline to pay off your Credit card bill every month on time, there is no reason to shy away from them.
You can have 2 good advantages with CCs - IF you adhere to the rule above - these are the float ( generally 20-25 days before you have to pay ), and ( if you choose a no-fee rewards card ), 1% or more rebate off your purchases.
I put almost all my regular purchases on my rewards card - phone, gas, eating out, furniture, clothes, etc, and ALWAYS pay the balance promptly, so I get the benefits as above.
And yes, if you do this, your credit will improve significantly.
Just remember - PAY OFF the bill EVERY MONTH in FULL!
GUS
You will never build good credit by paying everything in full in cash. You need to establish the fact that your are responsible, and pay your bills.
Make a small installment purchase: like a tv. Pay it off in a few months or a year. This will help establish your credit.
When I was a little younger than you, I bought my first car. I didn’t pay cash; I paid on installments. After 4 years, I had more credit than I could use.
You can get a free copy of your credit report; you may have better credit than you realize.
If you are renting an apartment, paying utility bills or phone bills, those should show up on your credit report also.