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  1. #1
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    Default Establishing credit Without a Credit Card

    Establishing credit does not always have to be done by using credit cards. In fact, many people have never used credit cards. Today, a credit check is usually done for many transactions such as obtaining insurance and even when applying for employment. First time home buyers are often approved for a mortgage with this method of credit. For anyone not using credit cards, it is important to know how to establish a credit history. It is called non-traditional credit and it can be done.Read the following instructions on how to establish credit without a credit card to prepare in advance for a possible credit check.

    Things You'll Need

    * Telephone bill
    * Electric bill
    * Rent or lease bill
    * Private loan bill
    * Any contracts

    Steps

    1. Make sure to pay all bills on time. This is necessary in order to build a satisfactory, non-traditional credit history.

    2. Gather all copies of bills that have been paid for the previous 12 months. These should include electric, telephone, rent, private loans, cell phones, payday loans, rent to own contracts and any other monthly payments that have been made. Also include any bills or loans that have been paid off.

    3. Contact the 3 main credit reporting agencies by telephone or via the internet to ascertain their fax numbers and mailing addresses and request what their policy is regarding fax or mail. Depending on the individual company, copies of bills may have to be mailed directly to them.

    4. If mailing, make a copy of the most recent statement for each of the bills. Write a cover letter addressed to each credit reporting agency requesting that they contact each vendor to verify the payments and to place the information on the credit report. If allowed by the credit reporting agency, this information can also be faxed.

    5. Most times, the credit reporting agency will confirm to the consumer that the information has been verified. Request a copy of the updated credit report after this has been done. This can be done through each individual agency or any of the free credit report companies.

    6. Check the credit report to make sure that the account has been verified. It should state the amount of time that the account has been open and the payment history. If payment is not satisfactory, it will show the number of times that late payments were made. If a set amount is paid each month, it will show the dollar amount.

    7. Verify that the information is correct. If it is not, contact the credit report agency. Mail or fax the correct information and request that they correct the account. After they verify it, they will again confirm their findings to you.

    Tips & Warnings

    * Make sure to give the credit reporting agencies the telephone numbers of landlords so that they can verify your payments.
    * Make sure to make payments on time in order to have a good credit history.
    * Never pay for this service or to receive a copy of your credit report.

    Source: eHow.com
    April
    http://www.budget101.com/groups/homeschoolers.html
    Neither a borrower nor a lender be.
    I should have listened to Shakespeare!

  2. The Following 8 Users Say Thank You to d_awalker For This Useful Post:


  3. #2
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    Default Re: Establishing credit Without a Credit Card

    Excellent advise- thanks!!!
    Tragedy, sadness, loneliness and despair taught me that life is really a beautiful thing; if it wasn't I wouldn't be able to recognize that anything was wrong - Lynn in Virginia

  4. #3
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    Default Re: Establishing credit Without a Credit Card

    Quote Originally Posted by faxonfive View Post
    Excellent advise- thanks!!!

    Hopefully someone can avoid the "need a credit card to establish credit" pitfall that gets people rolling on the run away credit card train.
    April
    http://www.budget101.com/groups/homeschoolers.html
    Neither a borrower nor a lender be.
    I should have listened to Shakespeare!

  5. #4
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    Default Re: Establishing credit Without a Credit Card

    Another great way of establishing credit without using a credit card is to open an account at a credit union (all you savy ppl probably all have credit union accounts). Deposit $500-$1000 into the account and take a share loan. You will pay a rate of probably 4.75% BUT you will be paying yourself back (yes the interest goes to the credit union but that is a small amount to pay for improving credit or getting credit). Normally they do not pull credit reports for this because you are borrowing from your account. It shows on a credit report just like any loan and you just make sure that you pay it every month on time. I would take the loan out for 6 months. It really is a great way to build credit.

  6. #5
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    Default Re: Establishing credit Without a Credit Card

    Thanks for the information! I have heard of people doing that through a bank as well.
    April
    http://www.budget101.com/groups/homeschoolers.html
    Neither a borrower nor a lender be.
    I should have listened to Shakespeare!

  7. #6
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    Default Re: Establishing credit Without a Credit Card

    Quote Originally Posted by d_awalker View Post
    Thanks for the information! I have heard of people doing that through a bank as well.
    Yes, you can do that at a bank too but as always I always suggest credit unions because they are not for profit. Any money a credit union makes goes back to it's members.

  8. #7
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    Default Re: Establishing credit Without a Credit Card

    Quote Originally Posted by kkiriazis View Post
    Yes, you can do that at a bank too but as always I always suggest credit unions because they are not for profit. Any money a credit union makes goes back to it's members.
    You are SO right! I did not even think about it that way. It is giving back to "others" instead of some big corporation.
    April
    http://www.budget101.com/groups/homeschoolers.html
    Neither a borrower nor a lender be.
    I should have listened to Shakespeare!

 

 

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