From pop up shops to digital currency, millennials have played a major role in redefining the landscape for investing.
As banks begin to acknowledge the demand for digital currency options, the credit card industry will likely follow suit. Your credit profile will be your hammer for success as much as your crypto portfolio is the workshop. So get started building a strong credit profile if you haven't already.
I could write chapters on how to be credit savvy, but here I'll put just a few solid, legal tips on building a stronger profile within a year (a la cheat codes for credit):
- Piggybacking. Find someone you trust (like a parent or lifelong friend) and ask if you can be an authorized user on their longest paid-on-time, lowest balance, highest spending limit credit card. Because you are just looking for score benefits, you won't need them to give you a card. It is important they always pay on time and are financially responsible, otherwise it'll hurt your credit. Both the age of the card and utilization will give your score a boost. (I saw a 73 point increase.)
- Get credit for renting your apartment. For a relatively small monthly fee, companies like RentReporters will go back 3 years and report on-time rent payments. Even if your parents are your landlords, your credit profile will benefit from this option.
- Secured credit card. A secured card requires a cash deposit to mitigate risk of lending to people with bad or no credit. If you can't get an unsecured credit card, get a secured card through Capital One or Discover. Most people without a bankruptcy qualify. Pay in full every month and within a year of responsible use, your score will see a benefit of possibly 50+ points. Plus you'll get your deposit back.
- No more collections. Accounts in collections have a huge impact on score. In most cases it is best to let collections accounts age off (takes 7 years from the initial late date)....instead of disputing them. But it is absolutely pertinent that no other accounts go into collections. Ever.
- No missed or late payments. Pay before the due date. Always. No exceptions. In general, payments are a numbers game, the more on-time payments you have, the better your score will be. Here, the more positive payment history you have sort of negates unfavorable payment history.
Whether you're a dabbler or an all-in digital investor (complete with a Mr Monopoly top hat), all eyes are on the horizon for the next big wave. Make the most of the ride by being credit-worthy.
Excellent
Will we even need credit if this crypto thing blows up? Will there be a new credit system set-up on the blockchain. The current system sucks just as much as the banking system that controls it.
Definitely see the value short term, I could pull down profits in order to buy real estate, which will require credit. Hopefully some new Crypto lenders emerge so i wont have to use FIAT or participate in their discriminatory lending practices!!!
It would definitely be ideal if a new credit system was adopted using blockchain technology. Today's system run by banks is slow and filled with inaccuracies that poorly depict credit risk in so many instances. It will be interesting to see what cryptolenders could bring to the table in aiding the housing market, which I think is the primary reason people need credit.
Whether the current system sucks or not, we need it. Cryptolenders would probably use a similar system. How else do you gauge whether or not people pay their bills on time?
Congratulations @cryptochristophe! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honnor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPBy upvoting this notification, you can help all Steemit users. Learn how here!
Congratulations @cryptochristophe! You have received a personal award!
Click on the badge to view your Board of Honor.
Do not miss the last post from @steemitboard!
Participate in the SteemitBoard World Cup Contest!
Collect World Cup badges and win free SBD
Support the Gold Sponsors of the contest: @good-karma and @lukestokes
Congratulations @cryptochristophe! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!