How to Establish Credit With No Checking Account

Video Transcript

"This is financial adviser Patrick Munro talking about how to establish credit with no checking account. Having a checking account is a good opportunity for you to develop a credit and individuals will see that you are able to keep that account going. But many times people do not have a credit, a checking account rather. So the best way is to have a savings account, that is monitored by the bank. And then of course what you can do is go off and take dollars from that savings account and place it in to a credit card that is really a asset based credit card. You are putting money into a credit card system that is your own money. Eventually what happens is that credit card company that gave you that service and you do pay a small fee for that, will see that you pay your credit cards off or certainly pay the payments on time, on a timely fashion. And eventually what they'll do is put their own money in, with yours and therefore, you have established credit without a checking account. This is Patrick Munro talking about how to establish credit without a checking account."