Are you just getting started in establishing your credit? Perhaps you are looking to buy a home and are wondering about credit for first time buyers, or for people with no credit. Maybe you already have some credit history, but would like to see your credit score be higher. Establishing credit and building good habits with your money will make your life much easier. You need good credit to buy a car, purchase a house, or even to get a job in many fields. Here is some helpful advice.
Credit for first time buyers
Your age does not affect your credit score. Don’t worry if you are young and just getting started. Start your good habits with credit now.
The size of your debt affects your score. Keep your debt under 50 percent of your credit limits to avoid having your score negatively affected.
Know the limits on your cards. Know your limits and what you owe on each. Keep your debt-to-credit ratio low.
Pay your bills on time. Establish one day a month to pay bills and review your finances so you don’t miss any and fall into bad habits.
Don’t open too many accounts at once. Spread out opening credit accounts over time.
Get a co-signer with good credit. Get a parent or relative to co-sign on those loans for things you need. Just make sure your co-signer has good credit. Do not use a co-signer with bad credit.
Look into secure credit cards. You pay upfront on secure cards, so your payments are just deducted from what you’ve already paid. These cards build credit while avoiding overdraft fees.
Good credit comes from building your history over time and establishing control over your debt and finances. Good luck!