We know that you have enough to think about as you head back for a new semester--but building your credit could be easier than you think in college.
And it has long-term benefits that will be well worth your effort.
You may think that the answer to this one is easy--especially if you're in the no credit is good credit camp--and say: "Heck no!"
But, depending on a variety of factors, you may be wrong.
While it's true that opening any type of new credit account could lower your score (especially if you have no credit or have very poor credit), there are some benefits to credit cards that could cause more good than harm in the long run.
And good credit is all about the long run.
What is possibly the most important tip for keeping a lock on your credit score and credit health?
It's no big secret--in fact, you won't be very surprised at all by how simple this one credit tip really is:
If you have bills, pay your monthly cost on time, every month, until that bill or loan is over with.
It really is that simple, but this one simple thing is going to be the absolute most important thing for fixing bad credit, or for establishing a strong history if you have no credit at all.
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…
If you've never heard of "the snowball effect", you may have missed out on some choice snow days in St. Louis in winters past.
Essentially, the snowball effect is where something starts very small but, over time with persistence, becomes a much bigger force. This is something that you can actually use--alongside affordable and competitive bad- and no-credit car loans in St. Louis--to reduce your loan amounts owed and cut way down on debt.
At AutoCenters St. Charles, we know a thing or two about credit when it comes to getting an auto loan. And if you have bad credit--or no credit--in the St. Louis area, you may be thinking that there aren't good options for you.
The good news is that that's just not true. Our financing programs have helped drivers with no credit and bad credit get the loans they need. The better news? We're starting a series right here on our blog to detail some of the safest, fastest, and easiest ways to improve your credit score.
