Thursday, September 24, 2009

Building your Credit


Lots of my friends are just now starting a new chapter in life. They are getting out of College, getting their first jobs and moving to new city's. They normally rent a place for six to twelve months then start looking for a home to call their own. Which is normal, but it isn't as easy for young people to obtain a loan as it was just a year ago. Creditors are getting tighter with their what they are requiring, which is making it harder and harder to obtain a loan. Here are a few good ways to get your credit rolling.



  1. Start a savings account. Most people already have a checking account but not a savings account. You really don't need all that much money in it you just need to have it. Creditors will like the fact that you have money set aside.

  2. If your like me when you graduate college your still driving the same car you had in high school and you hate it. So your going to want a new one since your now making real money and can afford the payments. Make sure you purchase something that you can make double payments on and have your parents co-sign for a car loan and pay it off as fast as possible. Don't make just the minimal payments, pay it off aggressively. This will be the start to actually producing good credit.

  3. Before you even graduate college open up a credit card. You don't need a huge limit and defiantly don't carry a balance on it just have it. Put just a few purchases on it a month and pay off the balance every month.

If you follow these three things it should get you started on producing a good credit score. Once you have established credit and are looking for that first home call me and I can help you find your first home!

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