Being a mortgage broker I have seen a lot of people with no credit, damaged credit or just starting to build their credit. It is never easy to build your credit when first starting out and it can sometimes take years to establish even a little bit of credit.
I will go over some of the best credit habits and how to obtain credit when first starting out, coming out of bankruptcy or building from damaged credit.
The only items that build your credit are credit cards, lines of credit, and loans. However, there are many items that can damage your credit such as any missed bill payment, usually missing two months in a row, or you may have missed one month, went a couple payments on time and then missed another. These will be noted on your credit bureau and lower your credit score.
The best credit guidelines are as follows:
Obtaining credit isn’t always easy, but the more credit you have the easier it can be to get depending on your income and debt level.
The easiest companies to get credit through can be the following:
Credit can be very tricky but each year the banks are making it more and more important when it comes to qualifying for any type of loan. Your credit situation will be unique to you but this blog gives you a basis to start from.
If you want to get a mortgage you will need credit. If you want to improve your credit and aren’t sure how to start then give me a call or email.