If you recently graduated from high school and are ready to begin the next chapter in your life, you may be concerned about how successful you will be in the future and if will be able to afford a vehicle or home when you are ready to purchase them. One way to establish your credit is by taking out a starter loan.
Get A Job
One of the most important lessons that you may learn in life is that your credit can really have an impact when it comes to borrowing money for a large down payment to acquire a new vehicle or your dream home. If you don't have any credit yet, that isn't a problem. You have plenty of time to establish your credit throughout the years that you will be attending college.
If you would like to apply for a starter loan, you will need a viable way to pay back the money that you borrow. Apply for a part or fulltime job so that you will be earning money on a consistent basis when you are not attending college classes.
Apply For A Starter Loan
Instead of applying for a loan at the first finance company that you see, take the time to research lenders in your town. You need to look for a reputable company that has been serving the community for years and that has an overall positive track record when it comes to keeping customers satisfied when dealing with loans.
It does not hurt to stop in the businesses and ask a loan officer at each one if they could provide you with some reading materials about the personal loans that are offered. Use this information to help you decide which company to apply for a loan through.
When you are ready to complete your application in person, bring identification, proof of your employment, your social security card, and any bank statements or recurring bills that you have.
Be Consistent With Your Payments
Make sure that you understand your loan's repayment terms, including what date you need to make a payment each month, how much interest you are required to pay, and the penalty that you will be charged if a payment is late. Do your very best to make sure you pay your loan back on time each month, even if you have to hang a note on your bathroom mirror to remind you of the date that your loan payment is due.
The loan company will report to each of the major credit bureaus. If your payments are consistently made on time and you pay the loan off in full by the date that it is due, your credit score will have risen by the end of your loan arrangement. After your initial loan is paid off, you will be faced with additional ways to continue increasing your credit score, such as taking out another loan or applying for a credit card.Share