How can you get better credit without credit cards?
Hubby and I is filing bankruptcy and now I am trying to figure out how to get our credit back up without credit cards. We don’t do very well with credit cards.
And no it’s not all credit cards for why we filled. House and car is the main reason!
You have to take out loans if you are opposed to credit cards. You cannot build credit, unless you USE credit! You don’t get better credit just by sitting at home and going to work!
At least you know that you can not control your credit card spending. If you do not do good with credit cards then only get a secured credit card, then you will never get large credit card balances. I would wait until the BK has discharged.
Go to your local bank or credit union open an account with $300 – $500 tell them you want a secured credit card. Use the card for small purchases like gas or food and pay the card off entirely each month on time. Use the card for about 12 months then close the account, (this is based on you not doing good with credit cards).
Also you can open a savings account, save until you have $1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.
Open an account with Fingerhut, they report to the credit bureaus.
Finance furniture at your local store, make sure they report to the credit bureaus.
It will take at least 24 months of consistent on time payments to re-establish your credit.
Anything you buy credit will buss your credit like buying a car pay it on time.