If you’re currently renting and have goals of homeownership, you may be wondering where to start your preparation for purchasing a home.
If you plan to take out a mortgage loan, boosting your credit score can increase the chances of you getting a loan with terms you prefer. So, what are some ways you can increase your credit score?
Take over the bills
Whether you live alone or with roommates, having utility bills paid in your name can be highly beneficial. When bill payments are reported back to credit bureaus, on-time payments demonstrate your financial responsibility and consistency - Which can positively effect your score.
Become an authorized user
If taking out a line of credit isn’t an option for you, consider becoming an authorized user on someone else’s credit account, which can help you increase your score.
Before taking this step, find out whether the credit issuer reports payments for authorized users. Once you’re sure they report payments for authorized parties, you can be added to the account without changing anything about your spending.
Check to see if your landlord reports rental payments
In most cases, rent payments aren’t reported to credit bureaus; however, this is starting to change. Consider speaking with a potential landlord to see if they use applications to report rental payments. Payments made on time can be just the boost you’ll need to increase your credit score.
Open up a credit account
Opening up a line of credit can do wonders for boosting your credit score. Before getting started, it’s best to plan out your credit finances to avoid spending too much on frivolous things. Instead, you may want to use your credit card to pay off bills, which can increase your credit score from multiple fronts.
Using these tips and tricks can help you manage and increase your credit, so you can get the ball rolling towards homeownership.
About the Author
Natalia San Filippo
Greetings from beautiful Naples Florida! Having grown up in Siberia, in a challenging environment I have a deep appreciation of our wonderful Southwest Florida climate and lifestyle. The journey that led me here has fueled my drive to be the best at everything I attempt. My natural enthusiasm for my work is contagious, and clients know that I am "giving my all”. My deep dedication to my family that includes my two adult children and my four fabulous grandchildren. My family reminds me every day that considering family first in one’s life requires an exceptional "home base” for everyone to gather for events and holidays. Everything in my life has equipped me to be a fabulous realtor at Premiere Plus Realty. Naples is cosmopolitan and international harmonious environment, positive energy and lifestyle. As a certified yoga instructor, I believe in and understand the importance of balance in one’s life. It’s through my yoga practice that I have achieved peace and harmony in my life. It’s this peace, harmony, and enthusiasm that I wish to pass to my clients. My goal is to continue to serve you!!! It is my mission! It is my goal! Let’s get to work together! Natalia Realtor, specializing in Residential sales, New construction, seasonal rental, VA homes, First home buyers, listings, sales. Member of Miami and Stella MLS. I service Naples, Bonita Estero, Marco Island & Ft. Meyer's as well as SW Florida. I appreciate referrals and I help with referrals in other States.