How to build good credit
We hear a lot about what to do when you have bad credit, or see tips on ways you can rebuild your credit if you have had trouble. But what if you don’t have any credit? What if you prefer to do things with cold hard cash and never had a credit card in your life? What if you are a young adult just moving out into the world and need to get a good start on a line of credit? When it comes to credit, everyone has to start somewhere. We have a few suggestions for how to build good credit, and while this isn’t a substitute for professional advice from a financial expert, these tips should help get you off to a good start.
Read our five tips for buying a used car.
Steps for building good credit
- Get a secured credit card. Without a credit history, it may be difficult to apply for a standard credit card. A secured credit card requires a cash deposit you make up front which you can use as your credit limit for the card.
- Don’t max out your credit card. Even if you have a secured credit card, try to avoid reaching the credit limit.
- Don’t open a bunch of accounts at once. It may be tempting to go for it all once you open one credit card account, but opening a variety of different credit card accounts, including retail cards, can actually hurt your credit.
- Pay every bill on time. Whatever bills you may have, big or small, pay every single one on time. This will help establish your financial stability and accountability.
- Practice good financial habits. Have a budget. Don’t miss payments. Don’t buy what you can’t afford. Creating these habits right away will help build your credit and give you a good credit score.
Build good credit with Gil’s Auto Sales
Gil’s Auto Sales is a buy here pay here dealership. We do all our own financing and don’t rely on banks. If you do not have a credit history, we can help you build one. We’ll figure out a financial plan that works for you, and we’ll report every payment you make to us to the crediting agencies, so your good credit will be on record almost immediately. So if you are in the market for a new (to you) car, whether you have bad credit or no credit, we can help. Contact us if you have any questions.