Flec National Network

Home buying made simple!

Category: Credit

Do You Need a Credit Card to Build Healthy Credit

Eventually, the need for a healthy credit score will come into play within your life. Whether you need to rent an apartment, buy a home or even get a cell phone account, your credit score plays a direct role in your everyday life. Because of this, it’s imperative that you have a healthy credit report capable of giving you the financial flexibility our modern lives demand.

While you may think building a healthy credit score will take years – or is even impossible if you have terrible credit – the reality is much more simplistic. Although there are literally hundreds of tips you can follow to help build a solid and healthy credit report, perhaps one of the most effective ways to accomplish this goal isn’t necessarily through a credit card. Rather, there are various other methods you can call upon to help build your credit score into the healthy zone.

Tip #1 – Pay Off Old Bills

While you may think if a bill has gone into collections you won’t have to pay it off, if you’re looking for a fast way to build your credit report, then you should actively work on paying off old bills – even those that are in collections. Make sure all of your accounts are in good standing. Obtaining a history of paying your bills and eliminating your debt will significantly boost your credit rating. Although paying off collections accounts doesn’t actually raise your FICO score, it does go into your overall report that financial lenders will take into consideration.

Tip #2 – Report Rent Payments to Credit Bureaus

This is one of the most effective – and smartest – ways to increase your credit score; especially for those who have terrible credit. By reporting your monthly rent payments directly to the credit agencies, you’re establishing a history of paying your bills on time, which is one of the most important variables when it comes to determining your overall score. While you can’t report your own rent payments, have your landlord or property management company report your on-time payments. There are many third-party applications capable of doing this for you.

Tip #3 – Take Out a Loan

Generally speaking, the majority of personal loans are considered installment accounts, which weigh heavy on your credit score. Therefore, one of the most effective ways to quickly boost your credit score without having to take out a credit card is by obtaining a personal loan. If a traditional bank doesn’t want to give you a loan, seek out alternative lenders, such as credit unions or even Peer-2-Peer personal loans.

Tips To Get a 750 Credit Score

750 credit score mortgageHOW TO IMPROVE YOUR CREDIT SCORE

Achieving and maintaining a good credit score seems to be a problem for many of us. One mistake and your score can be wrecked for a good many years. There is hope though. Below you will a few simple tips on how to improve your score, to achieve the best mortgage rate possible when buying your first home.


Get rid of the bills. This might be easier said then done. Before you invest in anything new, pay off the old balances. Do you have an old college loan? Is it something that is still nagging at you? Pay it off. Take some of that spending money and pay it all off. It might hurt to not have those new shoes right away, but you’ll be thanking yourself later.

Do you have old credit card balances? Get that taken care of as soon as possible. Get yourself out of the revolving debt pattern. Say enough is enough and pay it all off now. I am doing the same thing right now. As of this time next year, my credit card debt will be paid off in full. Learn from those mistakes.


There is a difference between good debt and bad debt. The above situation is bad debt. This is about good debt. The minute we pay off your house or car, it’s our instinct to get rid of it. Don’t do this. Leave this kind of debt on your report. This will work in your favor later. Every time you pay something off, it will paint you in a good light. Leave this debt alone.

When you are apply for a loan, it’s best to use a short time span. There is a short window of opportunity when the scores will work in your favor. Depending on when you do the application, it could make a dent in your score. It also won’t help if you have multiple accounts open at one time. The more you apply for credit, the more your score will be impacted. Avoid this if at all possible. Look at your calendar. Know the best time to apply. Know the best times to avoid this trap.


Believe it or not, paying your bills on times does impact your score. If you are late on just one payment, you will feel the pain. Don’t procrastinate. If a bill is due on the 15th of each month, pay it then. It’s even better if you can do prior to this date.


We are often asked what credit is needed to buy a house. This varies according to your debt to equity ratio, how much home you’re buying in comparison to your desired mortgage amount and income levels. Generally speaking, anything above a 700 will bode well, with a 720 threshold being even better. However if you can follow the above steps and achieve a 750 credit score (or higher), you should have the best chance at obtaining a preferred mortgage rate.

For more tips on how to bring positive changes to your credit score, visit Experian today.