Credit and Forget It

RE.com Tips & Tools — Thu, 25 Jun 2009 13:03:00 GMT

By Aldo Singer, 123Movers.com

The process of moving into your new home or apartment actually begins years before that event has taken placed. You can’t rent an apartment or find yourself a home if you don’t have good credit. Establishing good credit is one of the cornerstones to a happier life because if you can afford a nice home, chances are you’ve got good credit. Getting to the good credit point of your life starts off slow but there are ways to know that you’re going in to the right direction.

When you’re starting, probably while you’re in college its best to get any credit card you can. I say that because it’s going to be hard to get any kind of credit card when you do not have any credit to go on. Some credit cards you may be able to get are a secured credit card or a prepaid credit card. These cards will help you build on your credit report slowly.

You should also have a savings and checking account in place so the creditors can keep an eye on your funds. There is no point in giving someone a credit card if they don’t have money to spend.

If you’re still having trouble getting a credit card and you’ve been constantly turned down, you should look into being added on to someone else’s credit card account. This can help you build credit as well but it also makes you liable for the other person and vice versa. If the other person on the card or the ‘account holder’ is making charges that neither of you are going to be able to pay, your both going to be held responsible for those charges. You can’t run away from those charges.

When you receive your bill with those large charges you must make a payment to keep building on your credit.

Two of the most important factors of building good credit are paying your bills on time and how much of your actual credit that you’re using. Even if you can’t pay your bill in full (which is the #1 way to build fast credit) you should pay the minimum payment at least. It shows your making an effort.

It is recommended that you use at least 1/3 of your credit availability. Spending $50 a month isn’t going to make your credit score jump very high within a short period of time.

Before you realize it, it’ll be time to move out of your parent’s house and into your new home you should have a solid credit score if you’ve followed the aforementioned tips.

One more thing, probably the most solid tip to live by as much as you can is to never spend more than you make. If you do you’ll find yourself in loads of debt, the exact opposite record of building credit.

Tips & Tools : credit card

Credit and Forget It