Establishing credit is an essential aspect of life in today’s economy. A positive credit score (with a history behind it) will help you get credit cards, auto loans, mortgages, and more. Lots of Dallas landlords will ask for your credit before agreeing to rent to you. It shows that as a renter, you need to have something to impress them. Luckily, there is a lot you can do to establish and build your credit while renting a home in Dallas. By following a couple of simple steps, you can build a credit history that will ensure you get the things you need throughout everyday life.
Pay Your Rent on Time
Over the years, your rental payments wouldn’t be much help in establishing credit. But thanks to some modern technologies, you can now arrange your on-time rental payments reported to the credit bureaus. For instance, Experian will add your rent payments in your standard credit report upon request. By recording a positive rental payment history like this, you can make a good credit history throughout the years. For renters who need to establish their credit, this will possibly be the best alternative. Just make sure to inform your landlord and the credit bureaus to ensure that your payments are reported each month.
Apply for a Secured Credit Card
In case you don’t have a credit history, you’ll find it difficult to ask someone to offer you a loan. It includes credit card companies. One way to get around that is to apply for a secured credit card. A secured credit card is a type of credit card that uses your own money to guarantee your purchases. A secured credit card will ask you to make an initial payment to the card, which will soon become your credit limit. The required deposit sometimes is very low, usually just a couple hundred dollars, but can be higher based on your situation. Using the card will permit you to make monthly payments. These on-time payments are then reported to the credit bureaus, helping you establish a credit history.
Apply for Store Credit
Another useful way to establish credit while renting a home is to apply for lines of credit from shops or other retail industries. These types of cards can be easier to qualify for than regular credit cards and can sometimes even offer a few perks. The perfect strategy to establish credit using store cards is to make relatively small purchases and then pay them off with on-time monthly payments. Just make sure not to buy more with your card than you can afford to quickly pay back. Ensuring that you pay the minimum amount due monthly can help you build a good credit score. Another smart idea may be to rent to own appliances if you need a washer and dryer or refrigerator.
As a renter, you must have a credit history. Building a good credit score is much better. By taking advantage of the procedure mentioned above, you can establish credit while renting a home. In these ways, you can help guarantee that you are prepared to address whatever the coming years may bring. Make sure to communicate with Real Property Management 360 to find your next home to rent. Contact us online or call us at 817-502-3588 today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
