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How To Establish Credit If You Have None

Buying a vehicle with little or zero credit can be challenging. Lenders generally like to see borrowers with an established history because it minimizes risk. Having established credit can help you get qualified for a larger loan and even lower your interest rates. Here are a few tips to help you establish credit history.

Order A Credit Report

Make sure that you don’t have any credit history by ordering a copy of your credit report. Things like an unpaid cell phone bill, gym membership or student loans can appear on your credit report and count as history even if you haven’t applied for any loans or credit cards.

Get A Credit Card With Your Bank Or Credit Union

It can be easier to obtain a credit card if you apply with an institution that have an existing relationship with. Apply for a card at the same bank you have a checking or savings account with. If you can’t get approved for a traditional credit card you may want to opt for a secured credit card.

Apply For A Store Credit Card

Store cards tend to have lower credit limits and may have more lenient requirements.

History Matters

Start building credit as soon as you can as older accounts will have a more positive affect on your overall score.

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