Establishing credit matters because a good credit history and score can open doors for a person to live the life they want to live. On the other hand, a lack of credit or a poor credit history can negatively impact where a person lives, how much they pay for a home or car, and even prevent them from getting the job of their dreams.

The Professional Background Screeners and survey found that 51% of employers do financial and credit checks during their employee background checks. If a candidate has a history of late payments, bankruptcies, or foreclosures while their competition has a great credit history, who will appear to be the more trustworthy hire?

Most adults in the U.S. have at least one credit card, but it is possible to establish credit without one. A credit builder loan is a great way for college students to begin building a credit history. These loans are available at all banks for small amounts between $300 and $1000 and allow the borrower to make fixed monthly payments. 

Personal loans are often based on income, banking history, rental history, and employment and not a credit check. Applying for a small personal loan and paying it back monthly and on-time is a great way to establish a payment history. 

It is possible to get a car loan without credit when you have a co-signer or go through a no-credit lender. Even if you can pay cash for a car, financing the vehicle will help establish a credit history with on-time payments.

Becoming an authorized user on someone else’s credit card won’t require a credit check and can quickly help establish a credit score because payment histories for credit cards are reported to credit bureaus. 

Call 800-689-3935 to speak with one of our fiduciary financial advisors about a written financial plan. We will assess your current financial situation and educate you on ways to improve it, and discuss strategies to help you achieve your financial goals.