Build credit without credit cards?

[Jekblad]

I got a younger guy trying to "get started" in life. People tell him to get credit cards to "build his credit".

Most people who get credits to build credit are 5,000 in debt in a year or two. He understands this and wants to avoid the issue all together, is there a way to build credit without paying VISA to do it?

[beats me]

Seriously, the best way to start/rebuild credit is to get a secured credit card for about $300, secured meaning you pay them $300 up front as a deposit. Use it maybe once a month on gas or some other small shit and pay it in full every month on time. Do that for about a year and then MAYBE get a second card if need be except it probably won't need to be secured based on your good credit history.

I did that with fucked up credit under my belt and after about a year started getting credit card offers like I'm Donald Trump. Ironically the one bank that did give me the finger on getting a credit card is the bank that I've been banking at since 1995. WTF indeed.

And of course show some restraint. Sounds like he has the fear of debt and that's good and nobody is forcing anybody to use a card.

[stonee]

you need a stable job, and something really small just to open up a credit file. i went through the same thing.

I had to put down 500 on a visa...
you could also try getting him to finance an instrument or some other small loan thing.

[djsynchro]

I got a younger guy trying to "get started" in life.

Anal sex can hurt the first time. A good water-based lubricant is your best friend.

[djsynchro]

because it...

[djsynchro]

...just...

[Jekblad]

i love to hate you synchro! thanks for bringing your wisdom to this thread.

[ChiDJ]

Seriously?

It's not a fucking puzzle. You build credit by paying your balance off every month. Never spend more than you could have paid with cash.


Rinse / Repeat. It's not that hard. Just fucking be a man. Pay your bills!

Otherwise you deserve to be a deadbeat.

[Jekblad]

how much do you have in credit card debt Chi? just curious...
my wife helped me out by acquiring 10 grand or so. We've paid off more than half by now, almost through!

Unrelated to my experience this guy wants to go without. i think the Pre-Paid card is a great idea.

http://www.hulu.com/watch/1389/saturday ... -buy-stuff

[ChiDJ]

how much do you have in credit card debt Chi? just curious...
my wife helped me out by acquiring 10 grand or so. We've paid off more than half by now, almost through!

Unrelated to my experience this guy wants to go without. i think the Pre-Paid card is a great idea.

http://www.hulu.com/watch/1389/saturday ... -buy-stuff

I have Zero credit card debt. I learned my lesson a long time ago from someone who said exactly what I said to you. My only debt, (which is significant), is my mortgage and that's because of a huge 2nd mortgage I had to take out to pay my ex-cunt off in a divorce.

I have a huge line of credit that I could use any time because of my excellent credit rating, (that I earned).

And, believe you me, there is a huge hooker and blow binge awaiting me some time in the future.

[mikemc]

get two cards. One is one that you pay up in advance. #2 is one that is a regular card from a 'mainstream' bank. Pay the one in advance. Buy something with the #2 about $100 and pay it off in three months. Then call up and cancel credit card #2.

[beats me]

It took me a good 36 years to learn and practice what ChiDJ said (and I said). Part of the key is also learning to live fairly comfortably without any credit cards. That way when you get them it's not essential to your survival out the gate. Plus life expenses are expensive enough without lumping interest payments on top of that which is flushing money down the toilet. I never use a card for something I can't pay off on the next bill or 2 months tops.

[beats me]

Then call up and cancel credit card #2.

I heard that can fuck up your credit too but I'm not entirely sure about that. May also depend on how many credit accounts you have open.

[ChiDJ]

The best way to build credit is to use it. But, always pay it off. It's the interest that kills you.

Think about it: I see a $500.00 guitar. I buy it in cash. It costs me $500.00. But, since I paid cash, I developed no credit. Buy the same guitar on a "guitar center / Visa / Amex" card and pay it off - Immediately! when the first statement is due. Now you have your guitar AND you're building credit.


In America, credit is king. But. interest payments make the rich richer and you poorer. Beat the system. Maintain Discipline and Win.

[mikemc]

Then call up and cancel credit card #2.

I heard that can fuck up your credit too but I'm not entirely sure about that. May also depend on how many credit accounts you have open.

If it is listed as "closed by customer request" that reflects well on you. If it is closed by the issuer, that is bad.