How can you start a good credit history?
Nikki Davidson/FOX 6/Marquette, MI
27 January 2012

MARQUETTE -- They say you have to have credit to get credit, and that's what our Facebook viewers wanted to know more about Friday.

Cash over credit--a resounding message on our Facebook fan page Friday.

John Rohrer writes: "Credit is overrated. I've avoided credit cards like the plague."

However, not having any credit at all can cause problems when making large financial purchases such as buying a car or a house.

"Having no credit is like bad credit," said GreenPath Debt Solutions Financial Counselor Stuart Baker. "I understand people don't want to have debt, and that's a good goal to have, but you have to have credit to buy a house or car without trouble."

The most common way to start a credit history is simply apply for a credit card. However, it's key to make your payments on time, and keep spending under half of your credit limit.

There are other options besides turning to plastic. Credit unions offer small shared secured loans; that's a loan guaranteed by a shareholder's savings account, paid back in full and on time, then they can generate good credit. Experts say timing is everything.

"The biggest part of our score is how well we pay off by the due date; you should never wait more than 30 days past the due date to pay it off," Baker said.

Once you do have credit, it's important to keep tabs on it. Once a year you can review your reports for free here.

Free and confidential debt counseling is available here.