MCU: StartPoint (sm) - Credit Advice

Credit Advice

For the big purchases in life -- such as a new car or house -- using credit lets you get it now, and repay it over time. Great deal! But how do you get credit?

Before loaning you money, lenders want to find out if you're likely to repay the money back, so they'll ask about your job and income. And they'll look at your credit report. Your credit report contains information on the amount of money you owe, including credit card debt, and if you pay your bills on time.

Here are a few pointers to get your credit history started, and keep it shining.

You May Need a Little Help
A lender might suggest a parent co-sign a credit application if you don't have an established credit history, or a down payment. A co-signer acts as a reference for you and promises to repay your loan if you can't.

Make a Large Down Payment
As much as you can afford. It not only shows the lender you're more likely to repay the loan, it also reduces the amount of interest you'll pay over time.

Get a StartPoint Visa
With a parent as a co-signer, a StartPoint Visa is a smart way to get your credit started.

Keep Your Debt in Check
If you have trouble paying bills and just let things slide, the resulting negative info in your credit report may seriously limit your ability to borrow money, rent an apartment, or lease a car.