Coast to Coast Motors Official Blog
Establishing a good credit score can be harder than you think. In many cases, companies require you to have some kind of credit before accepting you for a loan or credit card. But, it can be hard to build up any kind of credit without having a credit card or loan to begin with leaving some users stuck in a loop and unsure where to go next. Do you have nonexistent credit? Find 3 easy ways to build up your credit from scratch below.
3 Easy Ways to Build Credit From Scratch
Sign Up for a Credit Card
While some credit card companies require a solid credit history before approval, others are more tailored towards individuals with little to no credit history. Look for credit cards geared toward students or credit cards to your favorite retail stores as these generally have lower entry requirements. Be sure to pay in full and on time though, as these cards generally also have higher interest rates and making late payments can tank your credit score quickly.
Get a Co-Signer on a Small Loan
If possible, see if a parent or another adult with good-standing credit would be willing to co-sign on a credit card or a small loan with you. It gives the banks confidence in your ability to pay and will give you a chance to build up some credit before applying for larger loans on your own. Keep in mind that the co-signer is equally responsible for any payments if you don’t keep up with your bills.
Go Slow and Pay On Time
Your credit score is built from a variety of factors including how much available credit you have, how much you use each month, your average account age, on-time payments, and more. Start small by opening one card or loan at a time and be sure to make on-time payments each month.
Once you establish a positive credit history, build up your score even more with a small auto loan at Coast to Coast Motors. We are a buy here, pay here dealership working with people of all credit scores to realize their dreams of vehicle ownership. Browse our current used inventory to see what catches your eye today, then give our team a call and we can discuss financing options.