Establishing credit is an indispensable aspect of living in today’s economy. A positive credit score (with a history behind it) will help you get credit cards, auto loans, mortgages, and more. A lot of Parkland landlords will observe your credit before agreeing to rent to you. This signifies that as a renter, you need to have something to show them. Fortunately, there is a lot you can fulfill to establish and build your credit while renting a home in Parkland. By applying a few simple approaches, you can build a credit history that will assist you to get the things you want out of life.
Pay Your Rent on Time
In years past, your rental payments wouldn’t make that much difference in establishing credit. However, thanks to some modern programs, you can now arrange to have your on-time rental payments related to the credit bureaus. For example, Experian will include your rent payments in your standard credit report upon request. By recording a positive rental payment history in this way, you can build a good credit history over time. For renters who need to establish their credit, this could be one of your best options. Just be sure to verify with your landlord and the credit bureaus to ensure that your payments are reported each month.
Apply for a Secured Credit Card
In case when you have no credit history, it won’t be easy to convince anyone to give you a loan. This includes credit card companies. One way to go about this is to get a secured credit card. A secured credit card is a type of credit card that uses your own money to guarantee your purchases. Most of the time, a secured credit card will want you to put a down payment to the card, which then in turn ends up being your credit limit. The required deposit is normally very low, from time to time just a few hundred dollars, but can be higher depending on your circumstances. Using the card will let you make monthly payments. These on-time payments are then reported to the credit bureaus, helping you establish a credit history.
Apply for Store Credit
Another likely way to establish credit even when renting a home is to apply for lines of credit from stores or other retail businesses. 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 charge more to your card than you can afford to quickly payback. Making sure that you pay the minimum amount due every month can help you create a good credit score. One more excellent idea may be to rent to own appliances if you need a washer and dryer or refrigerator.
As a renter, you will have to have a credit history. Building a good credit score is preferable. By using the approaches outlined above, you can establish credit while renting a home. In these ways, you can help ensure that whatever the future may bring, you are ready to meet it. Be sure to contact Real Property Management Sunshine to find your next home to rent. Contact us online or call us at 305-930-7867 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.