If you’re currently renting and have goals of homeownership, you may be wondering where to start your preparation for purchasing a home.
If you plan to take out a mortgage loan, boosting your credit score can increase the chances of you getting a loan with terms you prefer. So, what are some ways you can increase your credit score?
Take over the bills
Whether you live alone or with roommates, having utility bills paid in your name can be highly beneficial. When bill payments are reported back to credit bureaus, on-time payments demonstrate your financial responsibility and consistency - Which can positively effect your score.
Become an authorized user
If taking out a line of credit isn’t an option for you, consider becoming an authorized user on someone else’s credit account, which can help you increase your score.
Before taking this step, find out whether the credit issuer reports payments for authorized users. Once you’re sure they report payments for authorized parties, you can be added to the account without changing anything about your spending.
Check to see if your landlord reports rental payments
In most cases, rent payments aren’t reported to credit bureaus; however, this is starting to change. Consider speaking with a potential landlord to see if they use applications to report rental payments. Payments made on time can be just the boost you’ll need to increase your credit score.
Open up a credit account
Opening up a line of credit can do wonders for boosting your credit score. Before getting started, it’s best to plan out your credit finances to avoid spending too much on frivolous things. Instead, you may want to use your credit card to pay off bills, which can increase your credit score from multiple fronts.
Using these tips and tricks can help you manage and increase your credit, so you can get the ball rolling towards homeownership.
About the Author
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
