Establishing credit is a significant portion 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. Many Grandview landlords will check your credit before agreeing to rent to you. This means that as a renter, you need to have something to show them. The good news is that there is a lot you can do to establish and build your credit while renting a home in Grandview. By using a few simple strategies, you can build a credit history that will help you get the things you want out of life.
Pay Your Rent on Time
In years past, your rental payments wouldn’t be much help in establishing credit. But thanks to some new programs, you can now arrange to have your on-time rental payments reported 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 check with your landlord and the credit bureaus to ensure that your payments are reported each month.
Apply for a Secured Credit Card
If 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 get around that 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 require you to make a down payment to the card, which then becomes your credit limit. The required deposit is often very low, sometimes just a few hundred dollars, but can be higher depending on your circumstances. Using the card will allow 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 possible way to establish credit while 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 careful not to charge more to your card than you can afford to quickly payback. Making sure that you pay the minimum amount due each month can help you create a good credit score. Another good idea may be to rent to own appliances if you need a washer and dryer or refrigerator.
As a renter, you need to have a credit history. Building a good credit score is even better. By using the strategies 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 Consultants to find your next home to rent. Contact us online or call us at 816-207-0750 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.
