I`m 20 years old and I want to start building credit. I don`t want to use credit cards, I don`t think i`m ready for that, but are there any other alternative ways I can build credit without having to use credit cards?
I`m 20 years old and I want to start building credit. I don`t want to use credit cards, I don`t think i`m ready for that, but are there any other alternative ways I can build credit without having to use credit cards?
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If you’re not ready for credit cards I don’t think there’s anything “lower” than that to start building credit. Everything else involves getting a car loan, home loan, etc. Credit cards seems to be the beginning?
As stated there’s no way to build credit unless you use it. I suggest you get a small secured card with a $500 limit and just use it for gas or food. Make the balance is paid when the statement comes in. Also make sure they belong to the credit bureau. You got the idea not to go crazy with the card because that’s why half the country is in debt.
Yes start now, Get a bank account set up at 3 different bank accounts. then get a checking account set up at the primary bank you plan to use. Then apply for one credit card. Once you have all this in place next you apply for a loan at the primary bank you will use then go to bank B to apply for another loan. Let use use a 500 dollar loan to start. Smaller loan amounts will make your loan approval easier. Dont spend the loans money put it back in the checking account to pay your pmts. Make sure you have a part time job to show ability to pay off loan.
At the end of the 6 month loan you will pay both loans off have a little interest pmt due on each loan and have credit established at 2 diferent banks. Then the credit card you may use to make a few charges but always pay them off within 30 days to make sure you have a good credit rating. Your building credit and by paying within 30 days you pay no interest on the credit card. When your loans are paid off and You have finished paying back the bank if you payed this money out of your pocket you will have 1000 dollars saved up off the 2 bank loans you made. Now you have money to invest. Also you have two banks you can borrow from and can use each bank as competition to gain the lowest interest loans agaisnt each other in the future when you borrow again in the future.
You have credit at 2 banks and have a credit card. the process takes 6 to 12 months but it works. I buildt a real estate empire off of credit.
always pay on time and always make your pmts in excess of what you owe to maintain excellent credit and then invest your savings. Then eventually you will be wealthy and have nothing to do with banks as you have cash for all your purchases. I have always saved 25% of what I earned or more of my income. credit is buildt on your ability to pay on time. You also never want to max out your credit cards instead never charge over 30% of the max limit. Also I also believe using credit is dangerous be careful to pay them monthly and dont run up too much debt its slavery. I got out of debt fast by selling off all my real estate then I paid cash for realestate going forward.
Ps bring in check stubs to banker when you apply for loan also bank loans are cheaper interest then credit cards, hint hint. good luck