A great way to build credit without using a credit card is by taking out different types of loans. Now, we’re not saying you should take out a car or student loan, but if you have them already, that can work in your favor. Making those car and student loan payments on time helps build your credit history and shows that you not only are reliable, but you can use different types of loans for different situations. Also, signing up for utilities in your name helps build your credit. While it won’t establish a credit score, it can help first-time borrowers because it shows a history of responsible financial transactions.
If you’re still curious how to obtain credit without having it, here are two resources that can help guide you in the right direction: “Build Credit – Learn How to Establish a Solid Credit History” and “How to Establish Credit.”
Written by Alex Ziskind, University of Illinois USFSCO Student Money Management Center
The answer is complicated. Trying to get credit without having credit is a catch-22, because you need credit to build credit. Fortunately, there are some loopholes to this situation.
For one, you can build credit by getting a secured credit card from your bank or credit union. The different between a secured card versus a traditional credit card is that you must deposit money in a savings account before using the credit card. Therefore, any spending you do with the card is “secured” by the money you deposited. Keep in mind a secured credit card is different than prepaid debit card; you can’t build credit with a prepaid debit card, but you can with a secured credit card.
If you’re still curious how to obtain credit without having it or a job, here are two resources that can help guide you in the right direction: “Build Credit – Learn How to Establish a Solid Credit History” and “How to Establish Credit.”
An important law that dictates whether or not you can get a credit card is the Credit Card Act of 2009. This law states that if you’re under the age of 21, you cannot get a credit card unless you have a cosigner or proof of your ability to repay the lender. A secured credit card is also a good way to establish credit if you’re under 21 since it shows you have the ability to pay up to the amount that is deposited in the savings account associated with the secured credit card.
Written by Alex Ziskind and Andrea Pellegrini, University of Illinois USFSCO Student Money Management Center
Looking for Jobs on Campus
There are a number of campus job boards available to students looking for employment on campus. Don’t assume that positions only open before the start of the semester – check back for new postings throughout the year.
- Student Financial Aid Virtual Job Board: This job board is intended to assist University of Illinois students in finding part time employment to help them in meeting their needs while pursuing an education at this University.
- Assistantship Clearinghouse, Graduate College: The Graduate College Assistantship Clearinghouse lists assistantships that are available to graduate students on the Urbana campus.
- Research Park Job Board: Employers at the Research park are looking for undergraduate and graduate students to hold internships and part-time employment during the summer and academic year.
Also, reach out to professors and advisors who may have paid research or teaching opportunities. Creativity and initiative can reveal opportunities that you may not have considered!