Pay Your Rent on Time
In previous years, your rental payments would not be much help in establishing credit. Yet, cheers to those innovative technologies, you can now guarantee that your on-time rental payments are reported to the credit bureaus. For instance, Experian will provide your rent payments in your standard credit report upon request. By recording a positive rental payment history like this, you can create a good credit history over the years. For renters who want to establish their credit, this may be one of your best solutions. Be sure to consult with your landlord and the credit bureaus to confirm that your payments are reported each month.
Apply for a Secured Credit Card
If you don’t have a credit history, it will be hard to convince someone to grant you a loan. It involves credit card companies. One way to prevent that is to acquire a secured credit card. A secured credit card is a type of credit card that uses your own money to guarantee your purchases. In most cases, a secured credit card will demand you to make an initial payment to the card, which will become your credit limit. The required deposit is regularly very low, often only some hundred dollars, but may be higher based on your instances. Using the card will help you to make monthly payments. These on-time payments are then reported to the credit bureaus, helping you establish a credit history.
Apply for Store Credit
One practical way to establish credit while renting a home is to apply for lines of credit from stores or other retail establishments. These types of cards can be easier to qualify for than regular credit cards and can sometimes even offer a few perks. The best strategy to establish credit using store cards is to make relatively small purchases and then pay them off with on-time monthly payments. Just be mindful not to consume more to your card than you can afford to quickly payback. Keep in mind that you need to settle the minimum amount due every month to build a good credit score. Another brilliant idea may be to rent to own appliances in case you need a washer and dryer or refrigerator.
As a renter, it is essential to have a credit history. Building a good credit score is more preferably. By applying the strategies outlined above, you can establish credit while renting a home. In this way, you guarantee that if something happens in the coming years, you’re prepared to face it. Don’t forget to contact Real Property Management Charlotte Metro to find your next home to rent. Contact us online or call us at 704-919-1344 today.