Is your credit in need of repair or do you need to establish credit? If yes, it can be done, it just takes time. And both of these goals can be attained by using similar steps.

Start Your Credit File

It’s difficult to live without credit these days. You can’t buy a home without credit unless you pay cash. Many gas stations don’t accept cash, and in some stores many checkout lanes are marked for credit purchases only. And I believe this is a trend which will increase. As a result, if you have credit cards, you’re in good shape. But what happens if your credit is bad or you don’t have credit? These ideas on how to repair or establish your credit may help.

Develop Good Credit Habits

It’s important to make your payments on time. In addition to your credit cards and loans, you need to pay your rent and utility bills. When possible, pay the credit card bills in full. However, if you must carry a balance, try to keep that balance under 30% of your credit limit. And if you do have to carry a balance, pay more than the minimum payments every month. A factor in your credit score is how long the accounts are open. If you open too many accounts, you’ll decrease the average length of time they are open.

Get a Secured Credit Card

This is good for both establishing and repairing your credit file. When you make a deposit to the bank issuing the secured card, you’ll receive a card which has a limit in the amount of the deposit. By making your payments on time, you’ll start to build a good credit history. As an alternative, you can get a secured loan from a bank. It works the same way. The important thing is that both will give a positive report to the credit bureaus.

Repair Your Credit, Establish Your Credit

This isn’t going to happen overnight. To repair or establish your credit will usually take at least 6 months of on-time payments.  However, by developing good habits, you’ll set the stage or either repair or establish a good credit file good shape with your credit. Then, when you’re ready to purchase a home, contact us. Call Bunny and Art Reiman – Realtors.

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