Establishing Credit and Building Scores

If you are thinking about getting a place to rent, it is extremely important to understand your credit score. It is normally very difficult to attain a line a credit or a loan
without establishing a credit profile. For those who have no credit or limited credit to get a credit card or a loan, they can find themselves paying much higher interest rates due to their higher risk of default.How do you increase your credit rating?

Apply for a credit card from a retailer: Retail credit cards are usually easier to obtain than other form of credit cards due to the higher form of interest rate and low limit. If an once you do get approved for a card, make sure you pay off your monthly balance monthly and ON TIME!

Become an authorized user: This will not help build your credit score but it would help getting use to the idea of using a credit card. I hear this quite often, users are afraid of using a credit card.

Apply for a secure credit card: The individual will be required to provide a deposit that will serve as collateral on their accounts credit line. Card issuers will report your account activity and payment history to the credit bureaus, so be sure to keep your balances low and make timely payments.

Sign up for services which has monthly reoccurring bills: Some companies actually report back to the credit bureaus regarding your payment history.

Michael John Lau
Sales Representative
Hummingbird Real Estate