Building or reestablishing your credit can be tricky. Maybe you’re a
first-time car buyer with no credit history established, or someone
who currently has bad credit and recently filed for bankruptcy. In
both situations, it can be challenging to get financing or a loan to
purchase a car, a home or make other purchases on credit. As
NerdWallet advised in a recent article, there are ways for you to build
or reestablish your credit and improve your credit score, such as:
Applying for a secured credit card. Secured credit cards — credit cards backed by a cash deposit
— aren’t meant to be used forever. The purpose is solely to help you
establish enough credit to qualify for an unsecured credit card (one
that doesn’t require the borrower to make a deposit) and make other
large purchases on credit.
Paying your bills on time, every time. Making on-time payments is a surefire way to improve your
credit score and build good credit history. A good way to ensure
your payments are on time — every time — is to set up automatic
payments and/or electronic reminders.
Getting a co-signer. A co-signer is someone who is brought on as an additional
repayment source for a loan, enabling you to obtain loan terms you
may not be approved for. However, before you get a co-signer, you
both should have an understanding that the co-signer is responsible
for the amount owed if you don’t pay.
Keeping your credit balances low. Although having a credit card is good for establishing
credit history, experts advise keeping your use of credit at no
more than 30 percent of your total credit limit.
Getting approved for subprime financing. Subprime financing is available to consumers with bad credit
or no credit. For example, if you are looking to purchase a car,
dealers on the Credit Acceptance finance program can approve you for
financing regardless of your credit history. Credit Acceptance also
reports to the three major credit bureaus, so you have an
opportunity to improve your credit score by making on-time payments.
If you’re a potential car buyer with bad credit or no credit
who is looking to get approved for financing, Credit Acceptance has
enrolled dealers across the country who can help you get started on
your credit approval. All you have to do is fill out this short form on our website!