Hey you kids - How to build up a credit history

[pauldun170]

Instead of trying to make that stupid purchase of whatever crap you'd probably don't need at an interest rate that leaves your asshole a lil bit wider at the end of the day.....

Borrow from Yourself – This is the easiest method to establish your own credit history without a credit card. Buy a Certificate of Deposit (CD) from a bank. Then take out a secured loan against the CD for the same amount of time. Put the money you borrowed in a high-yield checking account. Then use the money you borrowed to payback the secured loan. You'll be establishing a credit history and earning interest on your checking account and CD. There are some downfalls to this method. You need the starting capital to fund the CD. You could end up paying more interest on the secured loan than earn through your CD and checking account; however, it's probably less than what you'd pay in fees and interest if you used a credit card. Just make sure to weigh the true costs before going down this road.

http://lifehacker.com/5464401/build-...t-credit-cards

[fasternyou929]

Interesting, never heard of that. Who reports those on-time payments to the credit bureaus? Seems it would fall to the bank to report it, so I'd recommend verifying the bank reports on-time payments before doing it (of course they'll report late payments, but that doesn't guarantee they report accounts in good standing).

[Dave]

meh i built credit with my house. Worked great

[Homeslice]

"high yield" checking account is a contradiction in terms

[sherri_chickie]

high yield anything account is a contradiction in terms.. I am getting a whooping 1.2% on a 18 month RRSP! Ye friggin ha

[Kaneman]

I did that once to buy a motorcycle, basically gave myself a loan for it.

Didn't do shit for my credit, complete waste of time.

[karl_1052]

So, in order to establish credit, you have to have money already.

Just like every other credit building scheme.

[Papa_Complex]

Originally Posted by karl_1052

So, in order to establish credit, you have to have money already.

Just like every other credit building scheme.

I started establishing my credit in college, with a $500.00 VISA Card, when I had less than nothing. You start small and build.

[wildchild]

Originally Posted by karl_1052

So, in order to establish credit, you have to have money already.

Just like every other credit building scheme.

it's a way to do it with low interest. the bank essentially gives you a secure loan with your money as collateral. because they have the money for collateral you get a normal interest rate rather than paying the ---oh you have no credit, your interest rate will be 17%.

[ericr]

The best way to do it interest free is to use a non-yearly fee credit card monthly...and pay off the full balance evey month. People tell you to carry a small balance but you don't need to. All you have to have is a history of payment to a reporting agency.