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How Do You Build Credit W/O Getting a Credit Card?

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  • How Do You Build Credit W/O Getting a Credit Card?

    I was going to purchase a TV from Sony, but wanted to make payments on it. They turned me down though because I really don't have any credit. How do I establish any kind of good credit without the use of a cc??
    System Specs:
    Gigabyte 8INXP - Pentium 4 2.8@3.4 - 1GB Corsair 3200 XMS - Enermax 550W PSU - 2 80GB WDs 8MB cache in RAID 0 array - 36GB Seagate 15.3K SCSI boot drive - ATI AIW 9700 - M-Audio Revolution - 16x Pioneer DVD slot load - Lite-On 48x24x48x CD-RW - Logitech MX700 - Koolance PC2-601BW case - Cambridge MegaWorks 550s - Mitsubishi 2070SB 22" CRT

    Our Father, who 0wnz heaven, j00 r0ck!
    May all 0ur base someday be belong to you!
    Give us this day our warez, mp3z, and pr0n through a phat pipe.
    And cut us some slack when we act like n00b lamerz,
    just as we teach n00bz when they act lame on us.
    For j00 0wn r00t on all our b0x3s 4ever and ever, 4m3n.

  • #2
    Try a different lease firm, or get one of your parents to go guarantor(sp?), failing that get a really low limit credit card and don't use it

    Also after the bills have been in your name for a while usually you can use utility companies as credit references.

    Dan
    Juu nin to iro


    English doesn't borrow from other languages. It follows them down dark alleys, knocks them over, and goes through their pockets for loose grammar.

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    • #3
      Don't make credits

      You'll have to be careful, MANY youngsters () can't keep track of their credits, or simply make too big ones, and end up with SEVERE problems.

      AZ
      There's an Opera in my macbook.

      Comment


      • #4
        I am currently downpaying on a DVD and the funny thing is that if you dont pay more per month that they require, you'll have a big big chunk left when the interest free year is over
        Many people gets cought in that trap because they asume that the monthly amount will pay it off in a year....
        If there's artificial intelligence, there's bound to be some artificial stupidity.

        Jeremy Clarkson "806 brake horsepower..and that on that limp wrist faerie liquid the Americans call petrol, if you run it on the more explosive jungle juice we have in Europe you'd be getting 850 brake horsepower..."

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        • #5
          if you are young DON'T GET A CREDIT CARD.
          i've learned my lesson a few years ago, i couldn't resist the temptation. nowadays i only use my cc because it is much easier to buy things online with it.
          no matrox, no matroxusers.

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          • #6
            Ditto here. Don't get credit while young unless you can afford it and have large amounts of self control.

            I use a debit card instead, which works anywhere you can use a full blown credit card by the same issuer. Of course this means not buying what you don't have money for

            Example: VISA Check Card

            Once you use a debit card you'll get all the pre-approved credit card applications in the mail you can handle.

            Dr. Mordrid
            Dr. Mordrid
            ----------------------------
            An elephant is a mouse built to government specifications.

            I carry a gun because I can't throw a rock 1,250 fps

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            • #7
              i never could get the concept of a credit card..... its a bit too confusing for me ... as is anything related to business .. it will be my down fall one day, so sais the fortune teller (read: my mother ) may any one here please explain to this dragon from an age long gone how credit cards work and what is a debt card... the people at the bank here never seem to be able to explain it properly to me.. they use too many vague terms
              "They say that dreams are real only as long as they last. Couldn't you say the same thing about life?"

              Comment


              • #8
                I'll give it a shot...

                The credit card company gives you a card, you use it to buy things.

                Each month the cc company sends you a bill. The bill will include the amount of your purchases plus the interest charge the cc company has tacked on to your purchase amount. This interest charge can be quite outrageous i.e. up to 24 - 25% of the total balance per year!

                If you pay only the minimum amount due for that month and DON'T USE THE CARD again, it can take up to 6 YEARS to pay off your balance!

                A debit card is similar. Some have flat yearly fees for using it, others don't. It depends on the bank you're going through. They don't usually charge interest on your balance.

                Instead of the bill coming to you, it goes to your bank. The balance for each month is paid IN FULL out of your checking or savings account. Therefore it is YOUR responsibility to make sure the funds are there to cover it.

                Don't have the funds, or miss a payment or three, and you start getting nasty phone calls from collection agencies!

                How'd I do?

                Kevin

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                • #9
                  On my Visa card I got no credit what so ever
                  And the amount I spend with the card is drawn instantly from my bank account
                  If there's artificial intelligence, there's bound to be some artificial stupidity.

                  Jeremy Clarkson "806 brake horsepower..and that on that limp wrist faerie liquid the Americans call petrol, if you run it on the more explosive jungle juice we have in Europe you'd be getting 850 brake horsepower..."

                  Comment


                  • #10
                    Credit cards work because the companies make money 2 ways.
                    1: Retailers pay a small percentage of bills paid by credit card back to the credit card company. It's generally considered symbiotic since the retailer doesn't have to worry as much about counterfeit cash and bad checks.

                    2: If you fail to pay back your credit card balance, it acts like a very high-interest loan. Often, people overspend their means, and the credit companies make a lot of money as thes people are bailed out.

                    Debit cards are accepted where credit cards are accepted, but the money is drawn from your checking account.

                    That all said, if you are very careful with credit cards, they can work to your advantage. They offer a lot of fraud protection if people try to impersonate you or falsely charge you. If you "float" things right, it works like an interest-free loan, and there are often benefits to using a card, such as frequent flyer miles, or money back. I use my Discover card whenever possible, and last year Discover ended up paying me $90 to use their card.

                    If you've got good restraint credit cards can be great.
                    Gigabyte P35-DS3L with a Q6600, 2GB Kingston HyperX (after *3* bad pairs of Crucial Ballistix 1066), Galaxy 8800GT 512MB, SB X-Fi, some drives, and a Dell 2005fpw. Running WinXP.

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                    • #11
                      The best way to get instant good credit is to start with a big lump of cash. I'm not kidding. Suck up and save it until you have a nest egg of about $2000. When you have this, go to your bank and get a CD. Use this CD as security to get a loan for the same amount. The bank MUST give you a personal loan if you have cash there as security for them. They will even give you a rate of one to two points over the CD rate (which is pretty decent) Your effective interest on the loan will be this difference, since you are making interest on the CD at the same time. Get the loan for a period of a year or so and save money as well as making your payments on time. After 9 months pay off the remainder of the note with your savings. (And by the way, this assumes you aren't a butthead and avoid bouncing any checks.) Now you have a credit history, and a damned good one at that. You will get more credit card offers than you can handle. Take only the one with the best interest rate and forget the rest. From experience, Citibank is the best company to deal with. I got a Choice Visa 10 years ago (along with too many other cards) and they've been by far the best. Discover charges too high an interest rate, so that one only pays if you pay off the balance in full each month (which is a very good idea to do.)
                      Last edited by KvHagedorn; 24 August 2002, 16:36.

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                      • #12
                        My first credit card was a 0 zero credit visa card (It was tied to my savings account, no money no go).
                        After that I arranged a $500 overdraft on my savings account, which gave me $500 of credit on the visa card (hence my comment of a SMALL credit card) and in turn allowed me to build my credit rating.

                        Multiple cards = Bad
                        Big Limits = Bad
                        12 months interest free = usually equals bad (unless you have incredable self control)
                        Juu nin to iro


                        English doesn't borrow from other languages. It follows them down dark alleys, knocks them over, and goes through their pockets for loose grammar.

                        Comment


                        • #13
                          Thanks for all the info. I'm not too big on money management, though I do spend wisely, etc. Hell, I make 9 an hour (broadcasting job is minimum wage and is only for experience, so it really doesn't count, and I don't get paid to do band interviews cause I get to go to concerts/bars for free) which comes out to around 1400 a month, have to pay for college which is like 1500 this semester, each month bills come out to 700 including rent. That leaves....basically each month 200 over, so I am kinda forced to spend wisely. So it would take forever to save up for the TV I want to get (which is this ). Plus I still need to purchase a recliner and entertainment center, which I plan to purchase straight up with cash. Anyway, trying my luck at a store in Austin called Lacks. I heard they go easy on approving credit for people, so maybe I'll get lucky. We'll see.
                          System Specs:
                          Gigabyte 8INXP - Pentium 4 2.8@3.4 - 1GB Corsair 3200 XMS - Enermax 550W PSU - 2 80GB WDs 8MB cache in RAID 0 array - 36GB Seagate 15.3K SCSI boot drive - ATI AIW 9700 - M-Audio Revolution - 16x Pioneer DVD slot load - Lite-On 48x24x48x CD-RW - Logitech MX700 - Koolance PC2-601BW case - Cambridge MegaWorks 550s - Mitsubishi 2070SB 22" CRT

                          Our Father, who 0wnz heaven, j00 r0ck!
                          May all 0ur base someday be belong to you!
                          Give us this day our warez, mp3z, and pr0n through a phat pipe.
                          And cut us some slack when we act like n00b lamerz,
                          just as we teach n00bz when they act lame on us.
                          For j00 0wn r00t on all our b0x3s 4ever and ever, 4m3n.

                          Comment


                          • #14
                            Originally posted by BuddMan
                            [...] I do spend wisely [...] each month 200 over [...] the TV I want to get [...] Plus [...] a recliner and entertainment center [...]


                            AZ
                            There's an Opera in my macbook.

                            Comment


                            • #15
                              Lacks.. heh. What's the interest rate there, BuddMan?

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