Saint Louis Banking Rates

Dos and Dont’s of Good Credit

Finding affordable auto loan interest rates is becoming harder than ever. You can’t control the economy or the way market trends affect interest rates. Luckily, there is one thing you have complete control over when it comes to obtaining great rates – your credit score.

Good credit is your chance to find the lowest auto loan rates available. Saint Louis Banking Rates has compiled a list of things you should avoid, as well as steps you should take, in order to build better credit and find low car loan rates:

Credit Don’ts:

  • Don’t close accounts: When you close an account or stop using a credit card, you are most likely just trying to eliminate some of your debt. It seems financially responsible to eliminate unnecessary credit cards and accounts that are racking up fees and further exposing you to debt. This is not always true, however. Maintaining a line of credit and low level of debt will actually boost your credit score. Spend responsibly and pay your bills on time, but don’t give up credit that has been granted to you.
  • Don’t forget to return your library books: Library fines can sometimes be reported to credit bureaus. You can easily avoid negative points by returning books on time.
  • Don’t accumulate parking tickets: Did you know the local government can send your unpaid parking tickets to collections agencies? They will report late payments and non-payments to credit bureaus. Always pay tickets when they’re due, or better yet, don’t get them in the first place.

Credit Dos:

  • Do open bank accounts. Hiding your cash under the mattress will get you nowhere. Saint Louis is full of financial institutions where you can open a simple checking and savings accounts. Holding accounts positively impacts your credit.
  • Do monitor your credit score. Identity theft is a huge concern as technology makes it easier for others to access your personal information. You should always be up to date on your credit activity so you don’t become a victim of fraud.
  • Do ask for help. Sometimes, building better credit is impossible if you have no credit history to begin with. Ask a trusted family member or friend with excellent credit to add you as a joint account holder or co-sign on a loan. Their good credit will be shared with you as well.
  • Do take on debt. Debt isn’t always bad. Your credit rating is partially determined by your debt to credit ratio – the amount you owe versus the level of credit available to you. A little debt with a large line of credit will help your credit score improve.