Thursday, September 9, 2021 / by Shane Kilby
Recently, I had a conversation with our lender about the influx of young buyers in the marketplace. We started talking about the difficulties these young buyers face. If you have kids of your own, it can help to start preparing them for this purchase early. One of the best ways to do this is by establishing their credit score, and I have a few tips to help you do this:
1. Help them establish a line of credit. You can start this when they’re still in high school but have a part-time job. Whether that’s through a car or a credit card, you want something that they put their signature on and that you can coach them through building that initial credit.
2. Help them make consistent payments. It’s good practice for them to be making their own payments, but you might need to help them out at first. You do not want them to miss a payment or this whole process could backfire.
3. Make sure the credit line is within reason. Start with something small and manageable. It’s just meant to show that they can make payments on time and be consistent.
4. Monitor their credit score. You want to check their scores at least once a month to make sure it’s being reported accurately and increasing over time.
If you have any questions about this or anything real estate-related, don’t hesitate to give me a call. I’d love to help you out however I can.