However I should point out you can't use that as justification to get bigger loans. Whether you have

I understand credit cards aren’t appropriate for everyone. For me and vast majority virtual tour company florida of the forum members, we use them in a very disciplined matter. So for us they’re great, but for you they might not be if you overspend with them.
And you know what? If you don’t have the full self-control to use them the right way, then I commend you for admitting that! Most people won’t admit problems, so to acknowledge credit cards are not for you shows you’re being realistic virtual tour company florida about your strengths and weaknesses.
Phone/utilities do NOT build credit – I can’t even tell you how many people I talk to who believe that their cell phone, power, and gas bills build credit. Unfortunately they don’t. You see the reason the cable or phone company check your credit when you open a new account is because they want to make sure you will pay your bill. If your credit comes back as sketchy, then they probably will ask for a security deposit. What they won’t do is report virtual tour company florida your accounts to the credit bureaus… unless you stop paying . When that happens, they will report your account as a delinquent/bad debt. So in short, these bills can hurt your credit, but they can’t help it.
Having no credit = bad credit – I’ve heard some people say they go without a credit card because they wrongly believe it actually helps them. Well if you’re going to screw up your credit cards – in that case – it is better to have none at all. But whether it’s credit cards or another type of credit… the bottom line is you need some sort of credit accounts to build credit history .
Debit prepaid cards don’t help – The same usually holds true for those rent-to-own places, too. Sorry, but these things won’t do diddly-squat for your credit . And if you’re wondering why they asked for your Social Security number when you got a card? That’s because of the Patriot Act – banks are required by law to verify your identity. virtual tour company florida They were not asking that for credit reporting purposes.
Building credit scores and history without credit virtual tour company florida cards isn’t always the easiest, but that s only because it s using the road less traveled. And what road is that? Well I’m going to tell you about 5 different ways you can go. In no particular order, here they are…
In short, virtual tour company florida you are borrowing money from yourself. The bank uses your CD as collateral and loans you the money. Typically the rates are low since you are essentially assuming all the risk – i.e. borrowing $2k from a $2k CD.
Not every bank and credit union offers these, so you may have to hunt around. When you find one that does, make sure they actually report your loan to the credit bureaus (otherwise it will be pointless for building credit).
And most important of all, pay attention to the price you are paying, not the monthly payment. The amount virtual tour company florida of your monthly payment can be manipulated to seem high or low, based on the length of the loan.
However I should point out you can’t use that as justification to get bigger virtual tour company florida loans. Whether you have $10,000 or $50,000 in student loans, the impact it will have on your FICO score will probably be exactly the same. What matters is how you manage it, not how high or low the amount is.
A secured credit card works on the same principle as the CD loan mentioned above. You give money to the credit card company, which becomes virtual tour company florida a security deposit. You are only allowed virtual tour company florida to spend up to that amount. Then when you decide to close your account, you get your deposit refunded.
Since a secured credit card builds credit , it is a good option to consider. But keep in mind that even though you won’t be able to spend more than your deposit, if you don’t pay your bill each month then you will be charged interest.
This is not a route I recommend (will explain virtual tour company florida why in a moment). But regardless, it’s still a way how you can build credit virtual tour company florida so I will talk about it and let you decide. Yes, it still involves a credit card, but it’s without a credit card of your own (sort of).
If I receive a credit card from say, BankOne, are they required by law to report this to any of the credit bureaus? If so, if that credit bureau required by law to share this information with the other two major credit bureaus?
I agree that credit cards are not for everyone, virtual tour company florida so thank for putting other ideas out there. virtual tour company florida However, as of 2008, FICO no longer accepts authorized user information as part of their scoring. And, in some places, utility payments are now on credit reports.