College graduates face a plethora of obstacles in their post-education transition, and likely aren’t thinking about building credit as a big priority. That is, until good credit becomes a big necessity for grown-up milestones like buying a house, a car, and even getting an apartment.
Aside from a credit card or two, most recent graduates don’t have much of a credit history – a valuable component to building a good credit score. Many believe that the car their parents co-signed to help them purchase during their college years will help to establish their credit worth; however, it will have minimal impact compared to establishing a payment history on the vehicle as the sole individual listed on the loan.
When faced with this common situation, one remedy for building credit is to refinance. Auto refinancing is a free and easy solution to list the recent graduate as sole borrower and start building that credit history. A few often unknown or overlooked facts for recent grads interested in refinancing:
- Refinancing does not generate any additional fees nor are there any out-of-pocket expenses.
- Many lenders look favorably on individuals who have graduated from reputable institutions when determining approval criteria and lending rates.
- You can create an acceptable work history in as little as 6 months in post graduate employment.
- Refinancing often allows the borrow to skip one, two or even three payments in some cases.
If you or someone you know is a recent college graduate interested in building your credit score, refinancing your vehicle can be a free, easy way to start today.