Recent Grads Credit Misconception


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:

  1. Refinancing does not generate any additional fees nor are there any out-of-pocket expenses.
  2. Many lenders look favorably on individuals who have graduated from reputable institutions when determining approval criteria and lending rates.
  3. You can create an acceptable work history in as little as 6 months in post graduate employment.
  4. 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.

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