Stay away from credit at your peril

Several consumers seeking to set up a credit history are denied credit because they don’t have enough credit to start with. And even a person with a high FICO score could be denied if the overall credit score bears too few records of active credit. Source of article – Understanding the down side of avoiding credit by MoneyBlogNewz.

Don't be super-responsible ever

Everyone who is super responsible with credit may not do also off as they think. Paying off student loans right out of the gate, avoiding excessive use of credit and generally living debt-free will save money in the long term, but some creditors don’t view the credit-phobic kindly. A credit score can also be hurt by several credit inquiries for those who want to use credit however have lots of choices.

Having little credit history and being a serial credit card applicant can impact credit negatively, claims Rod Griffin, public education director for the credit bureau Experian. You will need to your creditors that you can manage many credit sources at one time, even mortgage lenders like it when this takes place.

Active credit necessary with paid off loans

Paying off loans early isn't a bad thing, according to Griffin. You will have good marks stay for about 10 years on a FICO report. At the same time, only seven years are needed to get rid of negative marks. Paying down loans with excessive zeal can lead a customer to the "No, thank you" zone with some potential creditors, however. Some creditors will say no to a credit application just because there are not three accounts open and active for about 24 months.

Charge cards are necessary some of the time

Don't take on a lot of credit cards if you’re a college student that is just beginning to build credit. Having one or two credit cards can help a student build credit if it’s responsibly done.

But the weather may be changing, says Griffin. The ability a young person has to building credit is overlooked because of the new Credit card Act the Obama administration began. Experts say there is less of a possibility that students can build credit since access to college students is taken away.

Do not just use money

With just cash, you won't have any debt. Additionally you won't have any credit though. Maintain active credit accounts where you pay more than the minimum each month, and look to such goods as personal financing and no credit check loans when emergency funding is necessary. While such goods don’t traditionally report to the credit agencies – and hence do not provide a possibility to record optimistic marks on a credit history – they will enable you to keep away from building up excessive revolving debt on credit cards.

Information from

MSN

money.msn.com/credit-rating/raise-your-credit-score-to-740-weston.aspx

Yahoo

finance.yahoo.com/banking-budgeting/article/112152/dangers-of-avoiding-credit?mod=series-m-article-c

Understanding the Credit card Act

youtube.com/watch?v=UbIDOZz6CPw