Some people think that no credit is the best credit; but, apply for a home or auto loan in the St. Louis area, and you'll likely see that lenders are wary of potential borrowers who have zero credit history.
The best kind of credit is old, strong, positive credit: credit cards you've had for years with low utilization rates, loans that you've paid off in full (or have been paying for a long time), etc. These old accounts not only show potential lenders that you have experience borrowing and paying back money, it actually works to actively raise your credit score.
So, don't worry about closing, or trying to remove, older accounts from your credit report. As long as they're not negative, they're actually helping you!
An expert from Experian says:
"Even if closed, the accounts that have no late payment history remain on your credit report for 10 years from the date closed. As long as the positive information remains, it contributes to a stronger credit history. So, removing those accounts early actually could be harmful to your credit scores."
Old accounts = stronger credit = better rates for you!
But, if you can't wait for your good credit habits to rebuild your bad credit (or create history from no credit) and you need a car loan now, call the experts at AutoCenters St. Charles.
Our 60-second guaranteed-pre-approval program has helped thousands of drivers in Missouri get affordable financing for a used vehicle, regardless of credit standing.
Read through our blog for more credit tips, or apply for your guaranteed auto financing today.
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