Establishing Credit... the Right Way!

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Do me a favor:  Head to Google.com and search for “build your credit”. Once you hit “search”, I bet it’s no surprise that in under 1 second, about 50,000,000 results can be found. And if you’ve never had a credit card or a loan, your credit history is most likely a blank slate, leaving at least half of your search results inapplicable. Your credit history, as documented on your credit report, is a record of how responsibly you’ve repaid the money you’ve borrowed… and creditors and lenders use your credit history to make decisions about whether or not to give you a credit card or extend a loan. If you have no credit history, however, there’s no record of how you might manage debt. And as a result, many creditors and lenders won’t lend you money. The quickest way to build good credit is by using a credit card, but you can’t get a credit card without good credit. So what can be done to establish credit? And how do we find out if it’s working?

Become an Authorized User on Someone Else's account

To become an authorized user, a person (usually a family member or significant other) grants you permission to use his/her credit card account. Authorized users can be added to bank accounts and loans for withdrawing, depositing and transferring funds to and from their account… but unlike joint account holders, are not responsible for paying the bill on the credit card or loan account; the repayment responsibility remains with the primary account holder.  As an example, my daughter just graduated college with a great credit score because my wife opened a couple of credit cards, in her name with my daughter as the authorized user, when she started college.  So when she graduated, she had 4 years of excellent credit and now a great score.

Find a Secured Credit Card… and Apply for it!

A secured credit card is a great tool to use when attempting to establish credit. It functions just like any other credit card in the sense that when you use it to make a purchase, you’ll then make payments on that purchase on or before the due date, gathering interest if your balance is not paid in full. The most unique thing about them is the fact that you’re required to place a refundable security deposit when you apply. If approved, your credit limit will generally equal the amount of that deposit, which the issuer will hold as collateral until you close your account. If your application is rejected, you’ll get the money back right away.

All major secured credit cards report account information to at least one of the big three credit bureaus on a monthly basis, and that’s all the opportunity you need to improve your credit score. As long as you pay the bill on time every month, positive information will flow into your credit reports, building a track record of responsibility and covering up mistakes from the past, if applicable.

Get a Co-Signer

While a secured credit card is a great way to build or repair your credit on your own, you can also apply for an unsecured credit card using a co-signer. The co-signer agrees to pay back debt in the case that the borrower is unable. This may include any late fees and collection costs, on top of the full amount of debt. If you do plan on applying for an unsecured credit card by means of a co-signer, make sure you use it responsibly, paying your balance early or on time and never charging more than you can pay back.

Check your Progress by Checking your Credit Report and Score

After six months of timely credit card payments, check your status by viewing your credit report and score. Pay special attention to what is on your credit report and any positive or negative factors listed, so you have a better idea of what you need to work on next. Also make sure to take a look at your credit score – it will help you make sense of your credit report and give you an idea of how well you’re doing.

There’s a lot to keep track of, but with some strong focus and planning, you can stay on top of your finances and greatly improve and establish credit. After a year of paying your bills on time, potentially adding a new form of credit and removing any errors from your credit report, your credit could look vastly different. If you or your client’s goal is preparing your credit to be a first time home-buyer, by following just a few simple steps, you’re that much closer in making that goal a reality.

First Impressions Count: How Airport Growth Runs Parallel with Nashville Real Estate Development

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Have you ever left an airport with the feeling of unexplained curiosity for the city in which it sits? What about confidence in your decision to know that you’ll never, ever want to return? Have you ever formed a similar opinion despite never having left the airport you’d arrived in? Sometimes long-lasting opinions are formed during our time spent in-between exiting an aircraft and speed-walking to baggage claim. But how could our minds jump to such conclusions about anything in such a short amount of time?

I like to think of every airport as each locality’s front door. Whenever a leisure or business traveler exits a plane, an impression is made… even if said traveler’s only concern is locating the nearest Cinnabon (or if you’re me – the nearest restroom). Sure, such impressions may be positive. Some, negative. But studies clearly tell us that time spent in an airport helps shape an individual’s overall perception of a destination.

Like many Americans, I travel to a handful of airports each year, and by that I mean I spend a lot of time in long check-in lines, browsing overpriced food stands with subpar offerings, and desperately searching for an electrical wall outlet. In my experience, the first impression is generally less than great.

In 2016, Nashville International Airport officials announced a design expansion to the tune of $1.2 billion dollars; one which includes fund allocations for retail, entertainment, and both residential and office space funding. And that’s just the beginning. So why would an airport, one which happened to be named one of seven most entertaining airports in the world by CNN, need a “design expansion”?

According to the New York Times, Nashville’s entire skyline has been and continues to be reshaped by a building boom, one which includes a burst of hotels, office buildings, and residential high-rises to meet the demands of the men and women who make their way through the city as either tourists or new residents every single day. And as a city named “top housing market for 2017” by real estate listing company Zillow, Nashville’s relatively affordable housing market and, interestingly enough, growing healthcare community are huge driving factors in the growth of Middle Tennessee’s ever-changing city.

Sometimes in business, it really is true that you never (or seldom) get a second chance to make a good impression. When travelers pass through our airport and see good, strong images of both the leisurely and business climates of Nashville, it’s a return of investment. And when such impressions lead to additional growth and expansion, the general value of property and space increases… and with such an increase, the environment for investing becomes both strong and manageable.

While I’m unsure of what such growth means for the future of Nashville’s infrastructure, I can be sure of one thing: first impressions do count. Why else would a community invest billions into expanding its immediate impressionability upon new visitors? And as either a homebuyer, real estate agent, or investor, why wouldn’t you follow the lead of the Nashville International Airport and invest in something that can only grow along with the continuing development of the city itself.

Not only do first impressions bring in new tourists and residents, they bring an increase in property value and growth probability.