Insufficient Credit History – How To Obtain A Low Rate?
If you have insufficient credit history is it possible to obtain a low interest rate when applying for a loan or other type of credit? Yes, when you know how to do this and some of the secrets that can make it happen. Credit cards for college students can offer excellent terms and rates, and help you build up the credit history that you want and need for lower rates in the future. An insufficient credit history can also be minimized if you are willing to spend the time online to find the best rate for your specific situation and circumstances.
Credit loans are not impossible to get if you have no credit, but you will not usually get the lowest possible rate offered by the lender or card issuer. In some cases of insufficient credit history a secured card may be the only option with a decent rate. A secured credit card can also help you build up credit, but if you choose this method make sure that the card issuer reports your monthly payments to all three main credit reporting agencies. If the payments are not reported then the card will have no impact on your credit history and score.
Some car loans for students will include a low rate if certain criteria are met, such as a co signer or automatic payment deductions from your bank account. Having an insufficient credit history does not have to mean paying the highest rates charged, but you may want to wait and improve your score so that the rates you pay are even lower. You may want to get advice on credit score repair from a professional if you are not sure what other methods you can use to help lower your rates. The more you improve or establish your credit history the higher your credit score will be, and the lower the interest rates you are charged will go.