If you are wondering on how to build a solid credit history without having credit cards, then here are the four ways:
First is to hit the books. The only unsecuritized loans that we will ever get where our credit score doesn’t matter is the federal student loan. Then we must have to be a student to qualify. Federal student loans are not free but they are cheaper than credit cards. If you need money for school, federal student loans give you a way to start building your credit score.
Second is to borrow from yourself. This is actually we are doing when we take out secured loan from a bank. The process is we buy a Certificate of Deposit and take a loan out against it for the same amount over the same time period. Then we use the money. We will actually paying interest on the loan at the same time we are earning interest on the CD.
Third is to get a co-signer. This is to help us bypass the credit card stage and take out only debt you actually need. These co-signers are also legally responsible for the loan. Lenders can bank on being paid back and we build credit history by making timely payments.
Fourth is to be a co-signer. Allow yourself to be a co-signer if you know of anyone with a high credit score who’s taking out a loan. Simply the loan and their payments will show up on your credit report, thus building your credit.
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