When you don't have any credit to begin with, it can be hard to know where to start. Taking your first steps toward building credit isn't as hard as you might imagine, and we can help. Here are some credit building tips when you're starting from scratch.
Simple Solutions for Building Credit
When you're new to the world of credit, it's understandable if you’re unsure of how and where to start. Fortunately, credit building doesn't have to be hard. In fact, some of the best ways to build and maintain credit are to do just what you normally would: pay your bills.
The trick is to pay your bills on time. By doing this you're building a positive payment history, and this is the biggest factor that contributes to your credit score. But it only helps if the payments are reported to the credit bureaus.
Normally, loans and credit cards show up on your credit reports, but other bills don't always appear – that is, until you miss a payment. Many companies and services are quick to report missed or late payments, but it's harder to find one that reports timely payments.
Credit Building for Renters
If you rent a house or apartment, it's now easier to take advantage of credit building possibilities thanks to services that report your rent payments. This is a way to build credit just by making payments on a bill you're already paying!
As a renter, your monthly housing payments are likely one of the biggest expenses you have. This is one reason it's important to get an advantage to your credit score while you can. When you make large, consistent, and timely payments, this goes far in helping your credit score grow.
Since you have to make the payments anyway, there's no reason not to build your credit at the same time. Even better, signing up is fast and it doesn't require any landlord participation.
Auto Loans Are Great for Credit Building, Too
When you're new to credit, you may think that items like car loans are out of reach. However, that's not always the case. Auto loans are a great way to build your credit. Like rent and mortgage payments, a car loan is a big expense, so the more you keep up with these payments, the quicker you can build credit.
But how do you start when your credit is nonexistent to begin with? The answer is a subprime auto loan. Unlike traditional lenders, subprime lenders are willing to work with bad credit and no credit borrowers and base car loan approvals on more than just your credit score. These lenders look at your ability to repay, and how stable your residence and employment situations are, to consider you.
Subprime lenders only work through special finance dealerships, they're usually not lenders you can look for on your own for a pre-approval. Because of this, it can be difficult to determine which dealers have the special financing you need for your next auto loan. But, that's where we come in.
Auto Loan Help When You Need It
Here at Auto Credit Express, we know how important it is to start out your credit building journey on the right foot. We want to help by saving you the time, hassle, and stress of searching for a lender on your own.
We're teamed up with a network of dealerships across the country that have the special financing lenders you need when you're just starting out in the world of credit. To get connected to a dealer near you simply fill out our fast, easy, and free car loan request form, and we'll get to work finding a dealership with lenders that want to help.