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Can someone please help me learn how this works?

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Here's the deal... I have always paid up front for everything I own my house and my vehicles out right, I never went through the SPEND phase of life. Therefore, I have no credit!! Not a cell phone or a loan NOTHING ! So now I'm 30 years old and I'm trying to start building credit here's the problem.... The only thing I can fin to help me start is a secured credit card -- mainly because I have no history of making payments! Some of these companies is denying me because of no history !!
What is the best way to build credit WITHOUT getting in a lot of debt ?
Also I don't understand te terms used in credit for example " a account paid and closed" or a account "paid as agreed" ?? How about account "closed" only?? Any help would really be greatly appreciated !! Thanks in advance :)
by on Jul. 25, 2013 at 5:33 PM
Replies (11-11):
RoyalQuetzal
by New Member on Aug. 18, 2013 at 11:48 AM

Rent and ontime bill pay from what I've heard (Clark Howard is a good source for info) is only a very small part of your credit. Can you get a credit card from your bank? if you don't want to go into debt the best thing to do is use it twice a year on something small that you already have the money in your account for. When you get home, get online and pay off the small purchase. You don't get charged Interest this way. Also having that credit be "available" is good for your credit score.

According to Credit Karma the score they give you is based on open credit utiliation (the less you owe the better), percentage of ontime payments, avg. age of open accounts (the longer you leave them open the better), total accounts (the more you've used, the better, especially if you have been on time), hard credit inquires (when you apply for a loan or credit card , it's the credit check done on you), and derogatory marks.

Like I said, Clark Howard is a good source for a lot of financial information.  http://www.clarkhoward.com/categories/personal-finance-credit/

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