4 STEPS FOR ESTABLISHING CREDIT
If you dream of one day owning your own home, you'll most likely need to finance its purchase. Mortgage lenders will want to review your credit history to evaluate whether or not you’re a worthy borrower. So how do you get started establishing a credit history? Here are four ideas for you to get you started.
OPEN A BANK ACCOUNT
Open a bank account and use it responsibly. This is the first step in establishing a financial history.
GET A CO-SIGNER
A good way to establish credit is to piggy-back on someone who already has good credit history established and is willing to co-sign, but be aware that any default of credit on your part affects the credit of the co-signer.
SECURED CREDIT CARD
Apply for a credit card. Shop around and only apply for a card ir you can meet the lender’s requirements. Responsible use will help you build a good credit history.
DEPARTMENT STORE AND GASOLINE CREDIT CARDS
Since gasoline credit cards are not revolving (cannot carry a balance forward month to month) often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is easier to obtain. It is also a good way to establish credit.
If you’d like to chat more about steps you can take now that will help make your dream of homeownership a reality, I’d be happy to offer my expert advice. Just give me a call!
The Brass Team
Coldwell Banker West Shell