ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Strategies for Gen Z to Build Credit Before Renting a Place

These are the steps Gen Zers should take to build credit before moving into their own rental space
PUBLISHED JAN 18, 2024
Cover Image Source: Ways you can improve your credit | Pexels | Photo by Andrea Piacquadio
Cover Image Source: Ways you can improve your credit | Pexels | Photo by Andrea Piacquadio

The rental market is experiencing a positive shift for Gen Z, as rising inventory contributes to declining rent prices. According to Redfin, the median U.S. asking rent price in December saw a 0.8% decline from the previous year, offering individuals more affordable options. However, many Gen Zers are still under financial constraints, only dreaming of having a place of their own. Here's why.

Image Source: Photo by Helena Lopes | Pexels
Image Source: Photo by Helena Lopes | Pexels

Young adults are finding it hard to live on their own because of the expensive housing market. Many of them live with their parents or family members because it's too expensive to rent a house. A recent report by Intuit Credit Karma found that 31% of adult Gen Zers fall into this category—furthermore, 27% of these individuals currently renting homes reported struggling with high costs of accommodation. While rent prices are showing a modest decline, experts predict ongoing difficulties in accessing affordable rental options.

For Gen Z, building a strong credit history is essential to increase their chances of securing a rental property. Landlords often scrutinize prospective tenants' credit to assess their reliability in making timely payments. Here are three key strategies to build credit effectively:

Traditional credit reports may not consider routine bills like utilities and internet services. However, utilizing programs such as Experian Boost, StellarFi, and UltraFICO can help Gen Z build credit based on alternative metrics, including payments for streaming services and mobile phone plans. Over time, these programs may positively impact credit scores.

Becoming an authorized user of someone else's credit card is an effective way for young adults to build credit based on a more established credit history. However, it is important to choose a responsible credit cardholder with a strong credit score. Clear communication about payment responsibilities and ensuring that the card issuer reports the user's payment history to major credit bureaus are the required steps in this process.

Pexels | Photo by Pixabay
Image Source: Pexels | Photo by Pixabay

Secured credit cards provide a straightforward entry point for individuals looking to build credit. These cards require a security deposit, usually tied to the credit line, making them more accessible for those with limited credit history. It's important to pick a secured credit card that doesn't charge an annual fee. Also, looking for a card that you can eventually switch to an unsecured credit card is a smart move. This can help Gen Z lay the foundation for establishing a positive credit history.

MORE ON MARKET REALIST
The owner of the collection of Danny Lyon SNCC Civil Rights Posters was left astonished in the end.
9 hours ago
After Harrison bought a signed speed bag for $250, he happened to meet the star at a dinner.
11 hours ago
The contestant, Doug, had a hard time coming up with a sensible answer.
14 hours ago
While Jennings performed a half-baked trick, it still managed to thoroughly entertain the fans.
1 day ago
The player, Andy Schwartz registered the first loss of a car since Seacrest took over as host.
1 day ago
The guest kept his grandparents' antique instruments under his bed for years.
1 day ago
Harris wasn't the only one who came up with an answer that shocked everyone.
1 day ago
Despite getting a high auction estimate, the owner of the Meiji Period lamp chose to keep it.
2 days ago
The player, Gabriel Berkowitz pulled off a perfect night winning over $45,000 and a car.
2 days ago
Harvey showed no mercy after he found out that Sweet Lou Dunbar didn't know how apps work.
2 days ago
The founder of Plop Star made an unforgettable entry and a sad exit from the show.
3 days ago
The host is otherwise quick to reprimand families for backing absurd answers.
3 days ago
While the Marvel comic book fetched a $50,000 appraisal, Harrison felt it was too rich for him.
3 days ago
Jimmy Alexander became the first player to lose a brand-new car on season 43 of the show.
4 days ago
The contestant, Brianne Peterson got extremely unlucky with her letter picks for the final puzzle.
4 days ago
The guest was told that the Jasper Johns Flag Print wouldn't be valuable but it was worth thousands.
4 days ago
It didn’t help that Alvin Rosales was playfully scolded by the host just before losing the Bonus Round.
5 days ago
The photos featured some looks of the show's legendary former host, Alex Trebek, as well.
5 days ago
The player, Kate Stuntz, pulled off a miraculous win to take home over $68,000 and a trip to Iceland.
5 days ago
The owner couldn’t believe the value of Jane Peterson’s "The Floats" gouache painting.
6 days ago