How to start improving your credit

Responsible use of a credit card is the best way to establish a credit history. Do not get a card if you think that you can buy anything over the limit-it will cost you dearly. First talk to your banker; ask about a checking account or savings account, if they say no then your credit does not meet their standards. Ask if they have a “secured credit card” but limit to $250-$500. This is the amount you put in a savings account and they hold this amount as collateral, money to pay off the card if you don’t pay voluntarily. Ok, the bank will not do this or if they don’t carry secured credit cards then click here which will take you to a site that will issue a secured credit card.

Responsibility TIP:

• Pay the balance off each month to build up a history on your credit.
• Do this for 6-8 months to see if your score changes. Email Candice@omnirealty.net for a quick pull or your credit score after checking the prices. Omni Property Management, Inc. subscribes to Equifax and our rates are much lower. If you plan to buy a house within the year (from the date of this newsletter) Candice will pull your score for free (ask about the limit)
• Remember you are allowed one FREE credit report each year so you can use this in the period mentioned when you start establishing your credit.
• Remember the secured credit card rates are generally higher and use this to build your credit score and after it increases over 620; check back with your bank for a new credit card since you have learned how to handle your finances responsibly. You can cancel the secured card once you get an unsecured card. Check the rates.
• Look for other responsibility TIPS in our next news letter and forward this letter to others so they can subscribe to our Newsletter.