If you dream of one-day owning your own home, you’ll most likely need to finance its purchase. Mortgage lenders will want to review your credit history to evaluate whether or not you’re a worthy borrower. So how do you get started establishing a credit history? Here are four ideas for you to get you started:
Open a bank account
Open a bank account and use it responsibly. This is the first step in establishing a financial history.
Get a co-signer
A good way to establish credit is to piggy-back on someone who already has good credit history established and is willing to co-sign, but be aware that any default of credit on your part affects the credit of the co-signer.
Secured Credit Card
Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use will help you build a good credit history.
Department store and gasoline credit cards
Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is easier to obtain. It is also a good way to establish credit.
If you’d like to chat more about steps you can take now that will help make your dream of homeownership a reality, I’d be happy to offer my expert advice. Just give me a call at 619-952-5555.