Building credit in 4 easy steps

No credit, no problem!

altAre you new to the credit world?  Are you a first-time home buyer looking to establish credit?  This blog article is for you!  Featured in this blog article are four easy steps towards building a credit history.

  1. Get a secured credit card.

If you have limited or no credit history, qualifying for an unsecured credit card is easier said than done.  You may be asking yourself how am I supposed to build credit?  If you do not qualify for an unsecured credit card, speak with your bank about applying for a secured credit card.  A secured credit card requires a cash deposit that serves as your credit limit.  The deposit typically ranges from $300 to $500.

  1. Use your new credit card wisely.

Once you have received your credit card, it is important to use it responsibly.  First, do not spend more than your income means allow.  Second, pay towards your credit card balance each month.  Third, be sure to make your credit card payments on time each month.  It is okay to keep a low revolving balance but it is imperative that you keep it below 50% of your available credit.   

  1. Avoid applying for multiple cards.

Once you have qualified for your credit card and you have established a little credit history, avoid applying for multiple credit cards or loans.  Each time you apply for a line of credit your credit score decreases slightly.  So instead of chipping away at something you’re trying to build-up, focus your time and energy on proving to yourself that you can manage the one credit card you already have.

  1. After a year, upgrade to unsecured credit card.

After 12 months of timely credit card payments you should be eligible for an unsecured credit card.  Now is the time to talk with your creditor about making the switch from a secured credit card to an unsecured credit card.  This will free you from your security deposit and often unsecured credit card offer perks such as reward points and lower interest rates.

Building credit can be an intimidating tasks ask first, but once you get good credit habits you will find that it is not quite as bad as you once thought.  Once you have established credit you’re just one more step closer to making your homeownership dreams a reality.

What is your best tips for building credit?  What was the best advice you received as a first-time home buyer?

Read our article “Tax refund can help buy a home” {HERE}.

Read our article “How payment history impacts your credit score” {HERE}.

Read our article “Improving your credit rating by paying bills on time” {HERE}.

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About Adams Homes
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 35,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee with corporate headquarters in Gulf Breeze, Florida.

Discover all Adams Homes’ communities, model homes and homes for sale on our website, We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home.

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