Credit scores are absolutely important these days, and building credit can be done strategically and safely — even for those that have gone through foreclosure or bankruptcy. At the very least, you can open up a checking and savings account. Those two items show some measure of stability and are the baseline for good credit.
After that, there are many different things you can do. Opening a credit card is a good start. Beware of opening multiple accounts at once, though, as this reflects badly on your credit score. Once you’ve got that credit card, use it wisely. Put a small number of purchases on it each month (less than 30% of its limit whenever possible) and pay those off judiciously. The simple act of charging and paying gradually builds up your credit.
Credit scores increase when you make payments on time for pretty much anything. If you finance the purchase of an appliance or furniture, this can be a good way to build up your credit score. These purchases usually have small monthly payments ($50 – $100), which means that it’s easy to make payments each month, and thus your credit score benefits.
One of the best ways to boost credit is to regularly pay a car loan. We’ll go into more detail on a future post, but only try this if you can afford a car. Going into further debt won’t get you anywhere!
The views published here are the opinions of the writer and are not a substitute for legal counsel.
Israel Gonzalez
Real Estate Broker-Hollister CA
831-636-8858
Click here to contact me by email
