How to Establish Credit With No Checking Account

Having good credit is very important. If you are just stating out and want to build up credit there are some simple ways to go about it that require no checking account.

Instructions

1

Get a credit card. Go online and fill out an application for a credit card. You will only get a small limit at first but thats fine. Once you get the card buy something and then pay it off quickly. Do not run the card to its maximum. It looks better on your credit report the more you have left on the card. Paying timely and paying off debt quickly is a great way to build a good credit score.

2

Buy furniture. Many furniture stores will do a line of credit for purchases. Go pick out some furniture and make the monthly payments on time and in full. If the furniture store clerk should ask for proof of your payment history you can get it from your utility companies. The utility company representative should be able to give you a printout that shows you paid your bills on time.

3

Buy a car. Used car lots, and some new dealerships, will deal with people with no credit history. Even if you have to have a co-signer, the payments will still be reflected on your credit. After making payments for a while see if you can refinance and get the co-signer off. That will improve your credit worthiness even more.

4

Sign up with store credit cards such as Sears. Sears reports to credit bureaus. Get your card and make purchases, then pay the monthly payments on time and Sears will report favorably on your credit. Again, dont max out the card. Keep buying and paying off purchases. This looks better than filling the card.

5

Lease an apartment. Many apartment complexes report to the credit bureaus. Just make your rent payment on time each month. This is a simple way to establish good credit.

6

Participate in any or all of the above activities for six months to a year and you will have established a credit history. The most important thing to remember is to pay all payments on time and not to use up all the available credit on any cards. None of these should require a checking account, but after you acquire a good credit history you may then be able to get a checking account if you wish.