How To Build Your Credit for First-Time Renters
Credit and credit scores can seem foreign if you have only ever had a savings account and a debit card. In reality, it’s much simpler than you might think—your credit score indicates to banks and landlords whether you pay your bills on time and helps them assess the risk of renting to you. It may sound daunting, but it’s a standard practice for most places.
But what should you do if you have bad credit or no credit at all? Our blog from Daffodil Storage will guide you through the steps of building your credit, improving your credit score, and selecting the right credit card.
What Is the Best Way To Build Your Credit?
Building credit can be a straightforward and easy experience! When you pay your bills on time and steer clear of missed payments, you’re already on the right track. Plus, keeping your credit card balances low and taking a moment to check your credit report regularly can really work in your favor.
What Is a Good Credit Score?
Your credit score can fall into five categories: poor, fair, good, very good, and excellent. Credit scores play a significant role in your rental applications, as landlords review them when assessing potential tenants. The ranges for credit scores are as follows:
- Poor. 300 to 579
- Fair. 580 to 669
- Good. 670 to 739
- Very good. 740 to 799
- Excellent. 800 to 880
A good credit score is the ideal range for first-time renters, as it simplifies the process of getting approved for a loan or credit card. Higher credit scores lead to lower interest rates and more favorable terms, and when you’re prepared to purchase your first home, they can assist you in obtaining a conventional mortgage.
Credit Cards To Help Build Your Credit
Many credit cards are available to help you build or rebuild your credit, such as student credit cards, secured credit cards, and unsecured credit cards. Student credit cards, like Discover® and Capital One®, are specifically designed to help young individuals establish their credit history. Other card options include:
Start Building Your Credit Today With Help From Daffodil
Whether you’re beginning to build credit or looking to improve it, many options are available to support you in this process. By paying your bills on time and being mindful of your finances, you can take control of your credit and simplify the process of renting your first apartment!
Have you begun renting an apartment? Consider using a compact personal storage unit to store your extra belongings during the move. Find a Daffodil Storage facility near you today, or learn about self storage from our blog.