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Old 09-27-2011, 06:20 PM
Drew Drew is offline
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Default Questions on building credit

I'm 21 years old, graduating college in May. I want to start building credit, but I'm not sure how to approach it. I don't have any credit cards, I've always been scared of getting one because I don't want to rack up credit card debt. I'll graduate with about $40,000 in student loan debt and I don't want to add credit card debt on top of that. I use my debit card for everything. All of my bills get paid online through my debit card or by check. What is the best way to start raising my credit? If I need to get a credit card what should I look for?

Any help would be greatly appreciated.
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Old 09-28-2011, 09:31 AM
littleroc littleroc is offline
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Default Re: Questions on building credit

My question is why change your ways, continue to pay for things with a debit card and make pay off your student loans then you can start thinking about things like a house and credit. As for a car, just save up money to pay cash for one, you don't need credit, no one does when you pay in cash. If you feel it necessary someday to buy a house with a mortgage you can go through Churchhill Mortgage and they can do a manual underwriting for those who don't have a credit score as long as you have had the same job for more then 2 years, rented for a while and prove you have no debt with a 20% down payment. If you do want a credit score then get a prepaid cc from a bank and use it a while to build up your credit and then once you've established credit only have one card to use sparingly with a large credit limit and pay it off each month.
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Old 09-28-2011, 04:25 PM
Drew Drew is offline
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Default Re: Questions on building credit

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Originally Posted by littleroc View Post
My question is why change your ways, continue to pay for things with a debit card and make pay off your student loans then you can start thinking about things like a house and credit. As for a car, just save up money to pay cash for one, you don't need credit, no one does when you pay in cash. If you feel it necessary someday to buy a house with a mortgage you can go through Churchhill Mortgage and they can do a manual underwriting for those who don't have a credit score as long as you have had the same job for more then 2 years, rented for a while and prove you have no debt with a 20% down payment. If you do want a credit score then get a prepaid cc from a bank and use it a while to build up your credit and then once you've established credit only have one card to use sparingly with a large credit limit and pay it off each month.
I guess I never thought about it like that. Everyone makes such a big deal about building credit, I almost feel like I'm doing something wrong by not having a credit card. Other than my student loans I don't plan to ever go in debt for anything other than a house, so I guess it really isn't that big of a deal at this point. Thanks for the advice!
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Old 09-28-2011, 05:25 PM
littleroc littleroc is offline
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Default Re: Questions on building credit

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Originally Posted by Drew View Post
I guess I never thought about it like that. Everyone makes such a big deal about building credit, I almost feel like I'm doing something wrong by not having a credit card. Other than my student loans I don't plan to ever go in debt for anything other than a house, so I guess it really isn't that big of a deal at this point. Thanks for the advice!
Yes and everyone who does that has debt and is probably broke based on networth. I don't listen to people who have lots of debt and plays the leverage game when buying something. My wife and I use one credit card and keep it around basically just to play the stupid FICO game so that we can borrow money for a mortgage and that's it. We put gas on it and that's it and pay it off each month. I hate doing it, we pay for cash for everything and have no debt except our mortgage. My plan someday is to eliminate my cc and just use cash for everything even buying a house and to watch my FICO score go to zero, but yet be a millioniare.
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Old 09-28-2011, 09:02 PM
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DavidBibby DavidBibby is offline
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Default Re: Questions on building credit

I'm on the same path as LittleRoc... except my wife and I are already in our dream house and we have another house being used as a rental. We have mortgages on both these houses, have NO credit cards what-so-ever... and I smile as I watch my FICO score dwindle down to nothing! It's a GREAT feeling!
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