If you’re a first time home buyer, you may run into a problem that many young adults face: having too little or no credit history. This can be a huge issue when applying for any sort of loan or credit card. But how do you build up credit from scratch?
Bethy Hardeman at Businessinsider gives some valuable tips for people who are just starting out:
1. Keep up with cell phone and utility bill payments. Paying bills early and on time is the easiest way to keep your credit score from plummeting
2. Get a co-signer. While obtaining a credit card is difficult for younger consumers, being responsible with one is the best way to build credit from nothing. Getting a co-signer will help, since it is their credit score the creditors will examine.
3. Consider a secured credit card.Secured cards use a cash deposit as your credit limit, and are great “training wheel” cards to build on poor or no credit.