Establishing credit with no credit or credit card?
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Establishing credit with no credit or credit card?

Question by Alan: Establishing credit with no credit or credit card?
How would I go about establishing credit with no credit or credit card? I am 21 with no credit or credit card, just a checking/savings account with a debit card. And thats all I want for the rest of my life. I dont spend money unless I have it so I’m not looking into getting a credit card and dealing with all the mess(signing up, extra cards in my wallet, charges, etc). So how can I?
I dont think i can even have my own verizon cellphone plan with no credit unless I put down a huge deposit.

Any help or tips are nice!
Thanks

Best answer:

Answer by Toni
Credit cards are free to use.
If you pay the bill in full each month, you never pay interest and can easily get amazing scores without ever paying a penny.
Any other way of establishing credit will cost you money.

If you get an answer to get a secured card – remember that this card turns into a credit card.
So if you don’t like credit cards – don’t do it.

Secured loan – best way – but will cost you (vs. a free credit card).
With this loan you deposit $ 1,500 to $ 3,000 into a savings or cd and you make a secured loan against it.
Tell the bank what you are doing upfront, and spend at least one year paying back.

Re-consider getting a credit card.
It’s a 100% free way to get top credit ratings without ever paying a penny.
Just make sure you can pay in full each month.
If you ever carry a balance and pay interest it can easily destroy your credit and your life.
47% of Americans pay in full each month (never paying interest or any type of fee).
They have the top scores – could you be one of them???

Know better? Leave your own answer in the comments!

Comment (1)

  • stan c - May 4, 2014

    A credit score is based on a 12 month activity. You should always have two major credit cards. One for every day use, the other for emergency. It would also help you buy a home in the future. A good credit score is 660/749. Excellent 750/840. And always pay the balance the following month. Oh, also make sure they belong to the credit bureau.