Establishing credit is a significant part 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. Numerous Millbury 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. Fortunately, there are plenty of actions that you can do to establish and build your credit while renting a home in Millbury. Through a few simple methods, you can build a credit history that will help you achieve the things you want out of life.
Pay Your Rent on Time
In years past, your rental payments wouldn’t make any difference in establishing credit. Nevertheless, thanks to some modern ways, you can now arrange to have your on-time rental payments reported to the credit bureaus. For instance, Experian will cover your rent payments in your standard credit report upon request. By recording a positive rental payment history in this way, you can generate a good credit history over time. For renters who have to establish their credit, this could be one of your best alternatives. Just double-check with your landlord and the credit bureaus to guarantee 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 persuade anyone to extend 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 need you to make a down payment to the card, which then turns into your credit limit. The required deposit is usually very low, sometimes just a few hundred dollars, but can be higher contingent on your situation. Using the card will qualify 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 more 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 every month can help you create a good credit score. Another good suggestion 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 Metro West-Worcester to find your next home to rent. Contact us online or call us at 508-329-6000 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.
