Your FICO score and how to establish credit – for military men and women.
By Tom Kline, Controller of Virginia Chevrolet dealer RK Chevrolet
From buying used cars to motorcycles to homes, your financial past determines if you can get them ASAP.
When you’re ready to start acquiring assets – from buying used cars or new POVs (personally owned vehicles), to major appliances, etc. you’ll likely need more than your base pay. Lending institutions look at your credit history to determine the interest rate you’ll pay, or if you are even eligible for a loan. Learn how to establish credit for a solid financial future.
Your FICO credit score: learn how to establish your own credit history and get what you want.
A lack of credit history can make things like getting a credit card, or buying used cars, difficult. Fortunately there are more options than ever before, including first-time credit applications and low credit score loans.
Follow these simple steps to square away a solid FICO credit score:
- Open an individual savings and checking account. Your monthly account balance will show how well you handle your money.
- Look into low credit score loans. Though you will pay interest, you can establish a good record if you make payments on time.
- Get a credit card. If you are at least 18 years old, they are generally easy to obtain from department stores or gasoline companies. First-time applicants often get reduced lines of credit to begin a good track record – so indicate your status on the application. (Make sure that the card doesn’t carry high interest rates or finance charges.)
- Consider a secured credit card. These cards require you to deposit money before usage. Then, if you are unable to meet your monthly obligation, the lender takes money out of that deposit.
- Learn more about FICO. See What is a credit score? from Virginia Chevrolet dealer RK Chevrolet.
Build your FICO credit score by applying diligence and common sense.
Opening credit-worthy accounts is just the beginning of establishing a good track record, and building your FICO, or auto loan credit score. Once accounts have been opened, you’ll need to:
- Pay your bills on time.
- Pay at least the required minimum.
- Keep an eye on purchase amounts.
- Create a monthly budget to make sure you can repay your debts.
- Check your FICO credit score regularly to make sure it’s accurate. You are entitled to one free credit report per year from each of the 3 leading credit bureaus; after that, each report costs around $8. To find out how to correct mistakes on your credit report, see Correcting Mistakes on Your Credit Report.
A high auto loan credit score will lower your interest rates and save you a lot of money.
First-time credit applications and low credit score loans are making it easier than ever to get loan approval. If you’re buying used cars, consider this Financing Program from Virginia Chevrolet dealer RK Chevrolet. Even if you don’t have credit, this program gets you into the car you want, and helps you establish credit.
The longer that you make regular, on-time payments, the more you improve your FICO, or auto loan credit score. You will soon begin qualifying for lower interest rates, which over a period of years will save you a significant amount of money.
Tom Kline is Controller of Virginia Chevrolet dealer, RK Chevrolet. RK Chevrolet is the recipient of Chevrolet Motor Division’s coveted Service Supremacy Award four years in a row. This is an award which less than 400 of the nation’s 5,000 Chevrolet dealers have won. RK Chevrolet has been included in the Ward’s Auto list of top 500 U.S. car dealers, and has received the prestigious “Genuine Leaders Award” for excellence in sales, service and customer satisfaction.