If you want to become a first-time home buyer one of the things that you will definitely need to establish is credit. If you don’t have a good credit rating or you haven’t had much time to build credit it may be wise to start renting a property from a reputable company like First Coast Rental Management in Jacksonville, Florida and work on building some of your credit up so that you can one day purchase a home. Here are some of the TOP FIVE WAYS that you can work at BUILDING UP YOUR CREDIT RATING to qualify for the best mortgage or home loan.
1.DISPUTE ANY ERRORS on your credit report: If there are any potential errors on your credit report you want to negotiate right away. A small error on a credit report could be all that’s holding your credit back and if you are able to negotiate with your credit card company they could potentially erase some of the debt that they want for collection which can increase your credit score.
2.GET A CREDIT CARD: If you have little to no credit then you need to have at least one credit card so that you can start building credit. Take a few months and use your credit card as you would a debit card paying off the expenses very quickly so that you don’t incur any interest. Be sure to get a credit card from one of the more reputable vendors or traditional credit card providers and most importantly, keep your balance under 30% of the available credit given at all times. This will make it seem like you know how to manage your money well.
3.RAISE YOUR CREDIT LIMIT: If you can increase your credit limit to a higher rate this means that you can not only build credit faster but also produce a greater credit rating. See if you can bump up your credit limit even just a little bit especially if you are regularly carrying a balance. Carrying a balance above 70% of your credit limit actually works at lowering your credit rating. Again, this is why it is best that you never charge more than 30% of your available credit.
4.DON’T CLOSE OFF CREDIT: By closing off credit cards your credit can drop considerably. One of the best things to do if you are planning on getting rid of a credit card is to use it to pay utility bill. This way the card stays active and building credit and you don’t have to experience any decreases.
5.ALWAYS PAY YOUR BILLS ON TIME: If you are planning on buying a house as a first-time home buyer always pay your bills on time. This means rent for properties managed, cable bills, phone bills and more. It doesn’t take long before your credit will start to nosedive with a few missed bills.