Welcome to Jon’s Money Moments! Listen to this quick tip to increase your credit score quickly as Jon talks about how to build your credit safely!
What’s up everybody? This is Jon Schoeller with A&C Propeties and this is Jon’s Money Moment. I’m gonna talk to you guys for a second about how to build your credit for a rent to own house in Charleston WV.
A lot of you guys want to buy your first home and you have the income and the down payment, but you don’t have the credit. Now if you know me, I’m anti debt, anti credit, but it is a necessary evil in today’s world and market, if you want to get a loan.
So I’m gonna talk to you for a second about how to do it in a safe way and build your credit in a safe way rather than in the dangerous ways of buying expensive cars, over leveraging your credit and stuff like that. So what I want you to do is go out and get a credit card for about $500-$1000.
You may need to get a friend or family member, it’d have to be a really good friend, right, or family member, usually, to sign for you if you’re too young or don’t have any established credit. But for $500-$1000, and I want you to use that card for only the items that you’re already buying, your gas, your groceries, your rent, whatever you can use that for.
That’s money you were already going to spend and I want you to set it up on your direct payment out of your bank to be paid off at the end of every month.
So there’s no missed payments, there’s no interest charged to you, and it’s stuff you were going to buy anyway. Do not go get a credit card for the sake of building credit and go buy a bunch of useless things, just to build your credit and then put yourself further in debt, that is not the smart way to do it.
So go get a card for $500 or $1000, use that for six to eight months, some may be faster, some may be slower, nobody really understands how the credit thing works anyway. But do that for six to eight months, pay it off at the end of every month and that should help you build your credit.
Okay guys, I hope that helps and let me know if you have any more questions in the comments below and I’ll answer them in future videos, thank you so much.