Pay Your Rent on Time
In years past, your rental payments wouldn’t be a lot of help in establishing credit. But thanks to advanced technologies, you can check your on-time rental payments that are reported to the credit bureaus. For instance, Experian will include 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 time. For renters who want to establish their credit, this could be one of the best suggestions. Just remember to communicate with your landlord and the credit bureaus to make sure that your payments reported each month.
Apply for a Secured Credit Card
If you have no credit history, it will not be easy to convince anybody to provide you with a loan. It includes credit card companies. One way to get around 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. Most often, a secured credit card will oblige you to make a down payment to the card, which becomes your credit limit. The required deposit is very low, sometimes only several hundred dollars, but can increase according to your condition. 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
Another useful way to establish credit while renting a home is to apply for lines of credit from supermarkets or other department stores. 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. Do not spend more using your card than you can afford to quickly pay back. Ensuring that you settle the minimum amount due per month will help you achieve a good credit score. Another great suggestion may be to rent to own appliances if you need a washer and dryer or refrigerator.
As a renter, you must have a credit history. Building a good credit score is a lot better. By obeying those guidelines given above, you can establish credit while renting a home. Therefore, you can assure that whatever the future may bring, you are willing to face it. Be sure to contact Real Property Management Assurance to find your next home to rent. Contact us online or call us at 971-270-2600 today.