Credit Help For Renters And Others

Written by James Dimmitt

Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue’s on-time mortgage payments are reflected in her credit score profiled byrepparttar three major credit bureaus; Equifax, Experian and Trans Union.

Joe onrepparttar 138457 other hand is a renter, who wants to buy his first home inrepparttar 138458 near future. He pays his rent on time every month as well as his phone and utility bills. Joe is also a good credit consumer but his on-time payments are not reflected in his credit profiles. Why? Becauserepparttar 138459 major credit reporting agencies are not set up to track this type of payment and therefore they are not reflected in Joe’s credit score. Chances are good that Joe’s credit score will be lower than Sue’s because his on-time rent payments go untracked byrepparttar 138460 credit bureaus.

As a result Joe will be quoted a higher interest rate and higher fees to his lender when he applies for his first home mortgage. Seems a bit unfair doesn’t it? The good news for Joe and other renters like him is thatrepparttar 138461 credit reporting system is about to change.

In a recent Chicago Tribune article, reporter Kenneth R. Harney points torepparttar 138462 creation of a new national credit bureau whose “sole mission is to trackrepparttar 138463 payments that nobody else tracks.” The new credit reporting agency PRBC (Pay Rent, Build Credit) wants to build credit files on as many as 10 million renters nationwide overrepparttar 138464 next 5 years.

4 Steps To Creating Good Credit

Written by James Dimmitt

As a consumer you’ve learnedrepparttar importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching forrepparttar 138456 best deals on insurance, your credit worthiness will be judged by your credit rating or credit score.

A bad credit history or bad credit habits will place “black marks” on your credit profile. These include things such as late payments, having an account assigned to a collection agency, and of course bankruptcy.

Establishing good credit habits and therefore a good credit rating will improve your credit worthiness. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.

Here are 4 tips to help you create a shining credit profile:

1) Pay Your Bills On Time

Lenders only have your past payment history on which to deciderepparttar 138457 type of credit risk you present to them. How you pay off your debts now indicates to them how you will pay off future debts.

2) Don’t Use Too Many or Too Few Credit Cards

How much is too much ? How little is too little ? Many credit experts and financial planners suggest two to four credit cards is justrepparttar 138458 right mix.

3) Pay At Least The Minimum Due

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