Loader

4 Ways to Start Building Credit

4 Ways to Start Building Credit

At Automatic Car Credit, we do more than sell used cars. We want to help you improve your car credit. Having good credit earns trust with lenders and qualifies you to receive loans.

Use a Secured Credit Card

This is especially true if you’re building credit from scratch. A secured credit card is supported by a deposit that you make when getting the card. This kind of credit card is not meant to use forever, but it can help you begin to build up good credit when trying to buy used cars or other large purchases.

Use a Credit-Builder Loan

This type of loan has only one purpose: to help you build your credit. You borrow money which is then held by the lender and not released to you until the loan is paid off. The payments that you make to towards this loan are reported to credit bureaus.

Avoid Too Many Accounts

Applying for multiple credit accounts at around the same time can do some hard damage to your score. Try spacing your applications out by at least six months.

Avoid Overuse

Pay attention to how often you use your credit card. Generally, your utilization shouldn’t rise above 30%. This applies to all of the credit cards that you use.

Building and maintaining good credit takes time and effort. At Automatic Car Credit we understand these challenges. That is why, even if you have bad credit, we can help purchase find and purchase used cars. Contact us today to learn more.

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

Top