Ignite FB Tracking PixelBuilding Credit As A Renter Can Help You Buy Your First Home - Terry Naber

Building Credit As A Renter Can Help You Buy Your First Home

by Terry Naber 01/19/2020

Having a high credit score is one of the most important and helpful things you can achieve before buying a home. A solid credit history will give you a better chance of being approved for the home loan you want and getting a lower interest rate so that you know you’re getting a good deal on your first home.

But, as any renter can tell you, it can sometimes be difficult to lift your credit score when you’ve got so many other things to worry about.

In today’s post, I’m going to cover the best ways to build credit while renting an apartment so you can lift your score to an amount that will help you achieve your goal of homeownership.

1. Take over the bills

If you live with roommates or with your family, one good way to start building your credit score is to simply put more bills in your name.

If you’re certain that you’ll be able to make on-time payments on them each month, this can be a way to boost your score without much thought.

Keep in mind, however, that not all utility companies report your payments to credit bureaus, so it’s a good idea to check that yours does before putting the bills in your name.

2. Become an authorized user

If taking out new credit isn’t an option for you, becoming an authorized user on someone else’s credit account can help you increase your score.

Be sure to find out whether the credit issuer reports payments for authorized users before taking this step. And, once you’re sure that they do, you can be added to the account without changing anything about your spending.

3. Convince your landlord to report your rental payments

In most cases, rental payments aren’t reported to the credit bureaus. However, it is becoming more common. Check to see if your landlord uses a service like PayYourRent or RentTrack. If not, consider asking them to try it out.

4. Solving the “no credit” problem

Since we all start off with a blank slate in terms of credit history, some renters have the issues of not having enough credit information to start building their score.

If this is the case, it might be a good idea to open your first credit account. But, wait! Before you start racking up debt on your first credit card, take a minute to make a wise plan.

First, don’t change your spending habits just because you have credit. Pick a card that offers rewards in the form of cash back, and only use your card for things like gas and groceries that will help you earn points.

Then, set your card to auto-pay in full each month so that you never start accruing interest. This way, you’ll build your credit score and earn money (in the form of rewards or cash back), making it a win-win.

About the Author
Author

Terry Naber

Your "Good Neighbor" In Colorado Springs Real Estate Since 1990

Broker Associate (28+ years experience)

Certifications:

  • CRS
  • CDPE
  • LHP
  • MRS
  • CFE
  • MRE
  • CNE
  • IRES
  • SRES

Specializing in

Specialties:

  •  Buyer's Agent
  •  Listing Agent
  •  Relocation
  •  Foreclosure
  •  Senior Real Estate Specialist

Terry is long time resident of Colorado Springs and has been an award-winning licensed Realtor since 1990 when Colorado Springs was "Repo Capital" of the United States.  Getting into the business when most agents were getting out of the business was a challenge, but one that she eagerly embraced because she came in with a different business philosophy of putting her clients interest above all else, serving them with integrity and care, She soon had all the business she could handle from appreciative buyers and sellers.  Terry's commitment to being at the top of the profession for her clients has resulted in awards for every year of her 28 years in real estate and several prestigious designations:

  •  RE/MAX Properties 2015 Client Service Award
  •  RE/MAX Lifetime Achievement Award for sales surpassing $100 million
  •  RE/MAX International Hall of Fame Award
  •  The CRS (Certified Residential Specialist designation held by only about 7% of all agents); CDPE-Certified Distressed Property Expert; CNE-Certified Negotiation Expert; RFC-Residential Finance Certification; IRES-International Residential Specialist; LHP-Luxury Home Professional
  • Managing Broker's License

Terry can help you in any phase of Residential Real Estates-buying or selling single family homes; investment properties, luxury properties; town-homes/condos; income properties; new construction and resales; vacant land, short-sales; foreclosures and more.  Call her today for a free consultation 719-590-4796.

Experience, Commitment, Hard Work, Enthusiasm, Integrity, Results

When it comes to a successful real estate transaction, you should have seasoned experienced agent on your side.  Terry is experienced, confident, knowledgeable, and above all, she cares.  Whether you’re selling or buying a home, having an agent of our caliber representing you is invaluable.  She will be your advocate, your advisor and will relentlessly use her expertise to pursue your goals!

Get a positive, helpful partner for buying or selling a home:

  • Trusted resource for answers about the process
  • Innovative marketing strategies
  • Expertise about neighborhood features
  • Ability to target home searches
  • Strong negotiation skills
  • Support through the closing and beyond
  • Years of Experience

Find Your Next Home

In this incredibly difficult Seller's market, you need someone who knows how to beat the other buyers to the best homes, get your offer accepted and knows the area inside and out !  Terry can work with you to find the right home at the right price for you, including the neighborhood amenities that matter - not to mention the essential criteria you have for your ideal home.

Sell a Home

When it's time to move, you need someone who will market and advertise your home, show to prospective buyers, negotiate the purchase contract, arrange financing, oversee the inspections, handle all necessary paperwork and supervise the closing.  But even more importantly, an agent who has the experience and knowledge to prevent problems from the get-go and solve the ones that can sink your real estate ship.  She can take care of everything you need, from start to close, making the difficult task of selling less stressful.

Consult on Home Selling Tactics

Often times buyers don't visualize living in your home the way you do.  Terry can help you make your home attractive to its ideal audience - which can help you get top dollar in the shortest time.  Staging and photographing your home, recommending minor repairs or improvements can make the difference between a home getting stale on the market and one that is sold quickly for the maximum net to you.