Redwood Credit Union Millenial Home Buying Guide
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WHERE DO YOU START? Everyone comes into this world with no credit history. As you live your life, many of your purchases and expenses contribute to building your credit history. The choices you make can help or harm that history by painting a picture of a person who either pays their bills on time or doesn't. A favorable credit history will help you get lower interest rates on loans and credit cards, help you get approved for jobs and rental properties, and can make the diˆerence between getting your utilities turned on with a phone call rather than needing to first come up with a hefty security deposit. IN YOUR YOUTH Redwood Credit Union oˆers two youth account options to begin teaching children and teens about money management and to encourage healthy saving habits. Your late teen years are a good time to take the first steps toward laying down a credit history. Here are three great options for doing that. 1. If your parents have good credit, ask them to add you as an authorized signer on their credit card. This allows you to piggyback on their good credit. 2. Our Visa ® Credit Builder credit card is a great way to begin building your credit. It oˆers a low rate, no hidden fees and an automatic review for possible credit line increase and interest rate reduction. 3. Ask one of your parents to co-sign for a small loan in your name. As a co-signer, your parent is responsible for making payments on the loan in the event you are unable to do so. Whatever your choice, the most important action you can take to build credit is to make all your payments on time. Even one missed payment will harm your credit. If you have taken out a credit card, be careful to make at least the minimum payment each month and keep your balance as low as possible. You never want to "max out" your credit card. A good credit history can help you get a mortgage, a car loan, or even an apartment lease. But to build a credit history, you need a loan, and to get a loan, you need a credit history. How to build CREDIT at every stage of life >> continue >>