Can you build up credit without a credit card?
Im too young to apply for a credit card but I know lots of things I would need to apply for (including housing) require credit scores. Can I build a positive credit score without a credit card?
#credit #creditscores #housing #underaged
5 answers
Steve’s Answer
Enjoy improving your credit score.
Tony’s Answer
Good luck on your credit!!!
Katya’s Answer
Some banks- or most do offer a secured credit card. It means-that you deposit your own money usually $250-$300 and spend it. After, you get a monthly bill with a minimum monthly payment that must be satisfied on time.
Building credit -the number one key to a successful credit history is to never have delinquent payments on your history. Also, when you are applying for credit cards- be very selective in your choice. The best credit cards are the ones that have zero interest for at least 12-15 months-this will allow you to spend the credit money, pay it back with no additional interest accrued on it. Also, I like the credit card that give me either cash back , rewards, or miles- it all depends what kind of a spender are you and where it makes sense for your daily saving. I enjoy the cash back rewards- I get a percentage cash back after the spending I do.
However, I recommend that you try to budget your lifestyle and try not to use credit cards often as you don’t want o accrue debt with high interest rate or a high variable interest rate. Use it wisely- pay it back on time- pay it more if you can-don’t have more then 2-3 credit cards especially if you are just building credit history. The worst credit cards from my own experience when I was in college are the store cards- they all sound very good especially when you want to save -it their interest rate is way too high-those are the cards that get you into too much trouble.
Best of luck
Charles Anderson
Charles’s Answer
The easiest would probably having your parents add you as an authorized user to your credit card. I also have heard of a credit builder loan, which a forced savings program of sorts, and your payments are reported to credit bureaus. You can also get secured credit cards, where your credit limit is based on a deposit that you give the credit card companies.
One site that I found to help build credit was this: https://www.nerdwallet.com/blog/finance/how-to-build-credit/
I also found this site, which will also help you on how to continue to build and establish good credit: https://www.creditsesame.com/blog/credit/how-to-build-credit/
Are you sure that the school is wanting a credit score for you to apply for housing? Or is this for off campus housing? I just wanted to make sure that you are establishing credit for the correct reason.
Take it from me, don't go overboard with credit (cards). I unfortunately maxed out several credit cards when I was in college, and it took me a very long time to rebuild my credit for a better APR (interest rate) on a car and house.
Charles recommends the following next steps: