Are you coming to NYC? Or are you simply looking to become financially independent in this fast, like a bullet train, city? Whatever the reason is and whatever the aim is, building your credit should be part of your plan and strategy.
Even if you are a student, starting your credit journey is going to be the best decision ever. Building your credit from scratch may sound like a big issue, but trust us, it is not. Even if you already have a credit score and are looking to improve it, credit repair can be the solution you are looking for.
However, if you are new to all this, then this guide will be your best friend, explaining all the steps along the way.
1. Open a Basic Credit Account
First of all, apply for a secured credit card or a credit-builder loan. Both of these products are designed so that you can apply for it even if you have no credit history to show or have one, but it is limited.
To create a credit limit, start by depositing some amount your secured credit card will be ready now. Just make sure that you are responsible for paying your expenses, including rent, bills, and so on.
And just like that, your credit history will start building.
2. Become an Authorized User
One other way to build your credit from scratch in NYC is to take assistance from your friends or family members who are already using credit cards and have a positive credit history to show.
Simply become an authorized user on one of their credit cards with a positive credit history and get a credit boost. In other words, you will start building a positive credit score based on the other user’s credit history.
3. Establish Utility Accounts
This is not only an important step, but you can quickly increase your credit score to a better level by establishing your utility accounts. Place your name on the utility bills. These bills include electricity, water, gas, mobile, and so on.
This is important because when your name is on the bills, whenever the billing company is paid, it will send the report to the credit bureaus.
This means a positive credit history is made.
4. Apply for a Store Credit Card
You can also apply for a store credit card. For such credit cards, the approval requirements are usually low. By using these credit cards, you are basically entering the door leading to building a good credit score. Just use these with responsibility and try to keep a low balance. Also, timely payments are the key; always remember this.
5. Other tips
- As already shared above, pay your dues on time.
- If you use a credit card, keep the credit utilization ratio below 30 percent. If it goes higher, it will negatively impact your credit score as it is a sign that you are facing financial instability.
- Try to check your credit history regularly by asking for reports from the credit bureaus. These institutions can give you the report free of charge once every year. It means you can easily check the report for any mistakes and fix those as soon as possible.
- Don’t stop at just the credit card. Go for other options to increase your credit score, like getting personal loans, renting an apartment, and creating retail credit accounts. The more of these will help grow your credit history.
- Knowledge is power. Get this power as much as you can. Go to classes, attend workshops, visit experts, and so on. Do this and more to become a financially literate person. This will help you as now you will know how to increase the score on your own.
Conclusion
If you are trying to build your credit from scratch in NYC, then this guide will be super helpful for you. These steps are simple and easier to understand. You don’t have to complete all steps at once. Go forward, one step at a time, and achieve your goal of becoming financially independent and stable.
The credit score will not only help your life in NYC, but it will also help you in coming face to face with plenty of incredible opportunities. You can start your own business or rent your dream house. You never know what opportunities are out there till you go and prepare yourself to look for them.
