Credit Tips, Credit Truths, Credit Alternatives

Tips Made Easy

Here's a few more credit tips with regards to building and repairing credit. Ask yourself, can you buy it without borrowing? If the answer is no, then you should probably save for it. Remember that your credit score is based on how well you handle your debt obligations, so building credit requires you to borrow and pay back! Can’t forget that part! Whatever you spend on that card you have to pay back! If you don’t you can seriously damage your FICO score.

The Truth

In order to establish good credit it usually costs us money in some form or another. Zero % financing just doesn't exist for people whom have yet to establish it.  Unfortunately, the cost of financing reaches everyone at some point. You want that new car don’t you? Well the only way to get it is through borrowing the money from a bank or hitting the lottery! It is borrowing it is not free money! Cards are often easier to get, particularly if you're just starting out, but alternatives do exist.

Alternatives to Cards

You can build good credit by borrowing out a loan and paying it back on time. It can be a mortgage, car loan, student loan, or personal loan. Generally, all loans borrowed from a major bank or credit union will help you build or increase your FICO score. See my article about credit repair and using your own cash as collateral to get loans and trick the reporting agencies.

Extra Tip: Payday loans and title loans are not reported to the credit bureaus and do not help you build credit. You should avoid these kinds of loans anyway because they're expensive and predatory.

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