ways to build credit..

[civicturbo10]

Other plus for credit -

Rewards credit cards with cash back / points. You could probably leave a revolving $50 balance to help build up credit. I usually pay it off but i reap the rewards of cash back and so do my friends. I have it setup where i just pay off once a week so i never have to worry about late payments. With online banking so mature, i can set payments and forget about it and i save on stamps, have no finance charges, etc. Paying everything with cash is great but why not push it through a cash rewards card and pay it off weekly, free money.

Buy stuff online. Gives better protection that if you had paid with cash. You can file disputes, chargebacks etc. Your only liable for $50 if stolen / have fraudulent activity. Debit cards sux b/c they have no protection for consumers. If someone gets those debit card numbers and pin GL getting back the money from the bank...

Automatic drafting. - Alot of people like to use automatic drafting with their checking account. Let's say you have a gym membership you pay for by allowing the Health club auto draft every month. Gym goes belly up and they continue to auto draft. You think your bank is going to help you get your money back from drafting longer than they should? Highly doubt that. There going to tell you go battle it out with the health club. But how, they have gone belly up and continue to draft.... If you used a credit card for auto payment then at least you can call up your credit card to help assist in getting some of the money back and cut off the health club at the nipple, lol. Prob. a bad example but the point is if your going to auto pay, credit is a better option, IMHO.

Warranty - Ever had a dispute with a retailer. By using a credit card to make the purchase you grant your self more protection than if you had paid with cash. Let's say you bought an electronic item and it goes bad and the retailer refuses an exchange / refund. In some cases i have heard of credit cards warranting an item beyond the manufactures (maybe someone can chime in to verify). By using a credit card you have a much better chance to make it happen (calling credit card company to dispute, chargebacks etc). Pay with cash, GL receiving any funds back.

Don't get me wrong cash is still King. Credit just compliments it very well, almost to the point you can't live w/o it.