Many young Americans are exploring car loan rates in hopes of picking up a new set of wheels. Unfortunately, some of these individuals have trouble securing a car loan because they have little or no credit history.
Furthermore, new federal laws have made it difficult for individuals under the age of 21 to obtain credit cards, which allow them to start bolstering their financial standing. Although some young Americans may opt to apply for a bad credit car loan to purchase an automobile, others are looking to get their hands on a card to start earning credit. Odysseas Papadimitriou, the CEO of a credit-card comparison company, told the New York Daily News that newcomers to the credit game should never carry a balance and make only small purchases with their cards. He added that new credit card users run into trouble when they don’t take it seriously enough, and they start missing payments and getting sloppy. Papadimitriou said that people who have a tendency to buy nonessentials should not carry their new cards around with them. He told the news provider that by keeping their plastic locked up in a drawer, they can build good credit on necessary purchases while avoiding frivolous, spur-of-the-moment spending.
According to Reuters, financial experts have also advised young Americans to consider using retail credit cards, which are easier to obtain and can only be used in certain locations.