ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Debt & Bankruptcy

Building Credit Alternative Advice & 3 Tips

Updated on August 13, 2016


Building credit is essential to our personal finances.

So, how do we go about building our credit without going into debt or more debt through the use of credit cards. Or trying to obtain credit through banks with their fine print and legal jargon that leads us to having other issues, which can easily lead us into several other pitfalls.

Bankers, money lenders (usually not their money), will tell you that it is easy to ruin your credit if you don't pay your bills on time, yet it doesn't matter to building your good credit.

Think about that???

3 tips:

  1. Cash only
  2. No frill living
  3. Owe no one anything

All their lives i have stressed to my children that debt, any kind of debt is the equivalent to slavery. Bondage that ties ones hands and subjects them to having their free choice or decisions based on what someone else can and cannot do to them if they do not re pay the money, usually at an interest that they have used or borrowed.

The debtor is subject to the lender.

Tell the truth, when you borrow something from someone, especially money don't we tend to either avoid them until we manage to pay them back or feel a sense of guilt which usually ruins our relationship.

The borrower doesn't want to see them and the lender feels that they have been taking advantage of until the money is repaid.

Which is why if you are personally going to finance someone, tell yourself it is not a loan, but a gift. So if you get it back that is great and if you don't get it back it is not a problem.

So what is your reaction when someone asks you for money? How do you react?

Personal loans to friends and family can always be tricky, which is why I will always suggest going to a neutral institution, if money will strain your relationship.

The bible actually encourages us to be a lender, not a borrower, but being in debt really does tie ones hands, doesn't it?

When borrowing from an institution, remember to always do your research. Researching anything is always beneficial to making any decision, large or small. It gives you the ammunition to make a choice that benefits you and causes less regret, if something starts causing it to be challenging.


Doing your homework when it comes to building credit is vitally important. Ask people who should know but never take one person's word for what is the best way until you have asked several people and asked several questions.

It's different for us all.

Who to ask:

  • Bankers
  • Credit Unions
  • Personal financial advisers
  • Tax lawyers
  • Insurance advisors
  • Credit card company
  • People you admire

Where to look:

  • Internet
  • Credit card terms
  • Books
  • Gurus blogs
  • TV personalities
  • friends
  • family

All you need to know, is what do you want for your life?

Having goals, dreams and things you want to do and experience, it will be the best way to narrow down what you would like to have money to do with your present and future.

Cash money
Cash money | Source

Cash is King

Always remember this when doing anything in life. That phrase is still true in all the areas of one's life.

Money is still the most important way to build credit, buy things and live without too much stress and aggravation.

Having cash on hand whether it is dollars, gold, bonds, or anything else, makes all the difference no matter what anyone says.

Borrowing in any form is a strain, one misstep or life situation can make those house of cards fall. That's the problem with living with or on credit cards or any type of debt.

Saving for something makes a heck of a difference.

Even living from pay check to pay check, gives you some opportunity to put some money aside. Why because most of us spend money on things that we cannot eat, has nothing to do with a roof over our heads and what we should wear.

What is you reaction to someone asking to borrow?

See results

Kids advice

Teaching the difference between borrowing, lending and giving at an early age makes all the difference to a person who gets to their spending years and knows what to do with money.

Things to teach.

How to save for what they want.

  • piggy bank
  • work for it,
  • trade for it

To question if they really need / want it.

  • discuss why they want or need it, concentrating on why it's worth their money
  • teach them to wait, at least 3 - 5 days
  • give them a budget based on cash in hand (available to them)

Emphasize to them understanding and knowing how to respect money and the freedoms it can bring, and the challenges it can present if it is not handled with wisdom.

Wondering when to teach a child the value of money? As soon as a child can through a tantrum about something they may want (need), that would be the best time to start to teach them the value of money and the best way to manage their income versus their out going cash.

Children are brilliant, and can grasp concepts when explained and demonstrated visually, show and tell.


Credit cards
Debit card
not tangible
not tangilble
no interest
no interest
no penalties
no penalities
someone else's
Credit cards and debit cards have their advantages and disadvantages. But you should always ask yourself if using your money or someone else's at an interest rate which is best for you.

Google Household Debts

The average American household is in debt to the tune of...

  • $15,000 to $20,000, credit card debt
  • $100,000 to 130,000, overall debt

These debts can be broken down even further into categories.

  • mortgage,
  • student loans
  • auto loans

Good debt vs bad debt is always the question?

Credit vs Debit cards

Credit cards:

  • someone else's money
  • interest rate
  • credit limit
  • penalties

Debit cards:

  • your money
  • no interest rate
  • limited to what you have available
  • over draft fees

Note they can both be too too easy to use, swiping the cards make them too too easy to use. The only exception is you have limits on both, one imposed on you by the person who issued the card, with a credit limit and the other based according to how much money you have at your discretion.

Wisdom | Source

Experts Say

The concept of doing something bit by bit aids in doing something permanently because you learn the skills to maintain the discipline and resolve.

Getting out of debt is of high importance... Although, it can be a challenge.

We know the cost of living, inflation now, far surpasses the average income growth for American households.

Yet, discipline, resolve and the goal to live the best life are key, when it comes to getting out of debt, especially credit card debt, throwing as much money at it, is the best advice.

Work to pay it off.

  • Cut expenses, what is unnecessary or redundant
  • Budget, know what is coming in and what is going out
  • Increase your income, part time / second job, side hustle
  • Reduce your out going expenditures
  • Get rid of cards

Find ways to use money to pay off what you already owe...sometimes preparing for the future isn't a priority if living a miserable present.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: ""

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)