It’s clear that one part of successful home ownership is having a good credit score. The good news is that obtaining a good credit score is not something that is out of reach.
Whether you’re looking to rebuild your credit after many years or you’re starting from scratch, there are a number of things that you can try and implement. Today, we want to go over a few tips you can try to get your credit where you need it to be for home ownership.
You pay your rental bill each month. If you’re making that payment so often, why wouldn’t you get credit for it?
Similar to alternative credit data, you can add your rent payments to your credit report. If you have a long history of on-time rent payments, it can increase your score. This is because on-time payments make up 35% of your FICO credit score.
There are a few services that you can use to build credit with rental payments, including Rental Kharma and Rent Reports.
If you have a high debt burden, it can bog down your credit score. Lenders will want to look at your debt-to-income (DTI) ratio when determining whether or not they’re willing to give you a loan.
So, let’s say that you have a credit card payment of $100 that you make each month and a car payment of $200 that you make each month. If you make $4,000 each month, then you would have a DTI of 7.5%.
The majority of lenders want borrowers to have lower than 43%. The good thing is that paying off your debts is a great way to lower your credit utilization ratio, which can also boost your credit score.
If you have a close friend or family member that has a good credit score, you might consider becoming an authorized user on their account. The good thing about becoming an authorized user on someone’s account is that you can take advantage of all of the attributes that gave them good credit in the first place.
If you don’t have a friend or family member that has good credit, or if you don’t have someone that is willing to make you an authorized user on their account, you can always become an authorized user by purchasing authorized user tradelines.
If you’re interested in seeing how tradelines might be able to help you in your journey to build better credit, we’re here to help you.
Here at Personal Tradelines, we’re all about making sure our customers are confident throughout the tradelines for sale and the buying process. We’re here to provide all of the necessary knowledge so that you can find the tradeline that fits your situation best.
Make sure to get in contact with us when you are ready to take the first step toward great credit!