Credit Tips

From buying a house or a car, to applying for credit cards, credit controls a big chunk of our lives. Unfortunately, millennials are the age group having the hardest time adjusting to the real world due to their credit.

Before applying for a car loan, it’s important to know where your credit stands. Just how much car you can afford will rely heavily on your credit score.

For the most part, everyone likes to get the best deal they can, and getting the best interest rate on a car loan is no exception. But there’s no one size fits all annual percentage rate on car loans, so instead of worrying about the best rate, focus on getting your best rate.

It’s never a good idea to miss a car payment. You should always make your car payment and other bills on time each month to maintain a good credit score. Even if you do miss a payment, if you catch it early enough, you can decrease the impact it’ll have on your credit score.

Your credit score typically drops after taking out a car loan because of the impact it has on three areas that affect your rating. However, an auto loan can help you build credit and overcome the initial negative impact when paid back responsibly.

There’s no easy answer to the question of if an auto loan will hurt your credit. It could, if you’re not careful, but a car loan can also be a great tool for building credit.

You can't get a loan or credit card until you turn 18 years old in the United States, but there's still a way you can build credit as a minor.

Now that you’re an adult, you may find that you need a car to get to work or classes. If you’ve never applied for credit, getting approved for an auto loan can be a challenge, although there are ways to get one with no credit history.

Getting a car loan with bills in collections through a traditional lender could be difficult, and even a subprime lender may turn you down if you have a significant amount of currently delinquent debt. However, the type of bad credit you have plays a role.

Whether you choose to apply for a secured or unsecured credit card, applying for this type of credit is one of the best ways to help your credit scores improve.