The 3 Best Ways to Build Credit as a First-Time Buyer
Planning on purchasing a home soon?
Diving into your credit situation should be the first thing you do!
Even if you have a decent score, improving it can help you secure better rates and it increases your chance of approval.
A little financial planning can go a long way toward how you build credit as a first-time buyer.
While there aren’t necessarily any “quick fixes” when it comes to building credit, there are things that you can do to improve your credit in a shorter period of time. Let’s look at those now:
Keep a Good Job
A good job is a consistently paying job.
You don’t have to be a doctor to purchase your first home, you just have to make sure that you have a consistent amount of money coming in each month.
It’s all about being consistent. If the bank can trust that you bring in a certain amount monthly, they will be willing to lend you more money; small loans, mortgages, lines of credit, and more!
See a Financial Planning Adviser
A financial Planning Adviser can help you consolidate debt that you already have, organize it and make it easier for you to pay down.
They can also help you create an action plan for saving, check your credit score for you, fix anything that is incorrect or outdated and advise you on the entire home buying process.
Use Your Credit Cards
Yes, use your credit cards! Be smart about it though.
You should stick to spending under 30% of your available credit. 30% of your credit limit is usually a doable amount to continue with consistent payments each month. Paying off some or all of your credit card balance consistently proves to the credit card companies that you are worth lending to.
There are so many great resources online to find information on how to build your credit. Take a look at these links for more information:
- 10 Ways to Build Credit in Canada CreditCards.com
- How to Build an Impressive Credit Score Fast MoneySense.ca
- How to Build Your Credit from Scratch CreditKarma.com
- Raise Your Credit Score Forbes.com