It may seem like you can’t get credit unless you already have it. So, what do you do when you’re just starting out? There are a few ways to begin building a credit history.

• Apply for a secured credit card. This requires you to open a savings account and keep a certain amount of money in it. The money in your account serves as security for your line of credit and you can charge up to a percentage of that amount. As you make monthly payments on the account, it’s reported to the credit agencies, and you start building a history.
• Get a co-signer. Ask someone with an established credit history (such as a parent, grandparent, or guardian) to cosign your loan or credit application. You and your cosigner will both be responsible for the debt, so any related credit information will impact both of you.
• Be an authorized user. Be listed as an authorized user on a responsible person’s credit card. A lot of parents do this when their kids go to college. The parents’ credit history then goes on the student’s credit card profile and helps them get started. I added a younger sibling as an authorized user. I never even gave him the credit card, but it benefited and strengthened his credit profile.
• Look at using Experian and TransUnion’s programs:
  • Experian Boost is a free service offered by Experian, one of the three major credit bureaus, that allows you to add positive payment history from your bank account to your Experian credit report. This can potentially increase your FICO® Score, especially if you have a thin credit file or are new to credit.
  • TransUnion Credit Boost, also known as eCredable Lift, is a service that allows you to potentially increase your credit score by reporting your positive payment history for bills not typically reported to credit bureaus, such as utility bills, phone bills, and rent payments. By linking these accounts to TransUnion through eCredable, you can potentially improve your creditworthiness and qualify for better financial products.

Building your credit score is worth the effort.

Building and protecting your credit score takes time and effort, but it’s worth it. The real reward is the ease you could have in qualifying for major purchases in the future, like a home, a car, or college. Not only could it be easier to secure a loan with a higher credit score, but you’ll also likely get a better interest rate—which could ultimately save you thousands of dollars.

#WashingtonState #CreditHistory #CreditScores #FirstTimeHomeBuyer #FICOscores #KingCountyhomes #PierceCountyHomes #SnohomishCountyHomes #TeamTiedeman