According to a recent article from Lisa Bertagnoli titled “4 Ways to Build Credit without a Credit Card,” many Americans carry what are termed as “thin credit files,” meaning they have virtually no record of using credit in some way within the last half decade. With no credit activity to monitor, lenders are less likely to offer cash to consumers; making thin credit files just about as harmful to you as very low credit scores. Therefore, regardless of credit card use, consumers need to take proactive steps towards building a solid credit profile.
Credit builder loans function as savings plans in which a consumer loans money to himself or herself. The info for fulfillment is then reported to all three credit bureaus. Passbook and CD loans offer consumers the ability to use their savings account as security for their loan. A consumer can also report nontraditional payment histories to agencies, such as regular rent payments, to convey responsible installment payment habits. Finally, you should not rely on FICO scores alone.
Brad Meinck, Owner of T3 Collect, weighs in. “Too many Americans are inept regarding credit solely because they avoid credit at all costs.” Meinck continues. “As collection agency, we constantly suggest clients responsibly take out loans and pay them off in a timely manner. Alternative methods such as those offered by Lisa Bertagnoli can certainly satisfy that need as well.”
T3 Collect is a Clearwater, Florida based full service third party collection agency. T3 Collect is licensed in the State of Florida for both consumer and commercial third party debt collection. The company specializes in past due accounts, bad checks, judgments and other types of receivables. T3 Collect can be found online by visiting http://www.t3collect.com.