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your credit cards and car loan are building credit as they are. These other loans will initially hurt your credit for the first several months and not really help it in the long run. They will also cost you quite a bit in interest. Keep your balances paid in full and your score will continually go up. You don't have to carry a balance to build credit. I have used the no interest for 12 months before and it worked out well. Keep in mind, if you go over the 12 month by a single day they will add all interest that accrued over the year. The utility bills are not reflected in your credit report unless you don't pay them and they go to collections.

by timothy p

3 weeks ago

Asker's Rating: 

NO NO NO! only use credit cards for emergency's didn't they teach you anything???!! #@$$&*$

by iloveramy- 3 weeks ago

If your credit is good and building nicely, then don't even consider anything which might cost you even a few extra bucks. However, if you have the cash on hand, and there really is no-cost financing for the mattress from the furniture company, then you might consider that. Do beware, however, that most (if not all) of these "no-cost financing" deals actually have hidden costs! You can often get the exact same product from a store without any "no-cost financing" bs for half to 3/4 of the "no-cost financing" price! It is not worth it to pay a penny extra. Shop VERY carefully before doing this. Alternative: if your credit card limit allows, charge the mattress and/or piano, pay it off in full when the bill comes. If this is larger-than-usual purchase, but still paid in full when billed, this may help you get a higher credit limit on the card, or will otherwise help you boost your ratings. Do NOT do this if you go too close to your limit! Do NOT do this unless you pay it off in full immediately upon receipt of the bill.

by ibu guru- 3 weeks ago

A finance loan with some manufacturers or retailers do not report to the credit bureau. It could help if you use the credit card and pay in full; this way you will build a great history on your credit report and it will be reported to all three major credit bureaus. You can also go to the bank and apply for a secured loan; if you don't mind paying a security deposit that you will receive back as long as you pay the loan. This will build your credit history as well. I hope you the best and hope your back gets better.

by flipho_3000- 3 weeks ago

I wouldn't do it. It will help your credit, but I personally just don't think credit score is that important in life. I manage my finances and I simply don't use debt, I wait until I can afford to pay cash. Since I don't plan on borrowing money, I don't care what my credit score is. Those financing deals at the store are too risky. If you miss one payment by one day, or if you still owe a penny when the 0% term expires, then they tack on back-dated interest and it gets expensive fast. Its just not worth the risk when you have the cash to pay for the things outright. By the way, you can get an upright piano on craigslist for free or at least a lot cheaper than $1,000. And you will LOVE the temperpedic mattress. My wife and I got a temperpedic when we got married (in 2005) and our only regret was that we bought a queen size instead of a king size. We have vowed that we will never own any other type of mattress ever again. (and we both have back problems so I know where you're coming from). Bottom line, it will be a minor positive on your credit score, but I would pay cash anyway.

by SmartA$$- 3 weeks ago

This plan is fine, but I would add one thing: If you have the money to pay cash for the mattress and piano, but finance them anyway, then use the cash to pay off the rest of your car loan early.

by StephenWeinstein- 3 weeks ago

My experience with credit cards is that even if you say you are a responsible person, there can be things in your life that distract you (say, suddenly you are very busy at a job, or you have some family emergency for a few weeks, or you go travel abroad, etc. etc.) and these can make you miss a credit card payment or SOMETHING. So I would be very careful about that. I prefer to MINIMIZE or ELIMINATE my OBLIGATIONS and LIABILITIES which are things you commit to financially. It's too hard to read all the fine print. But you need to. Heck, maybe they say you should pay 10 days before the due date if paying by check (I am just making this up) but you didn't know that and now you got hit. Something like that.

by Zipfly- 3 weeks ago