How to Establish a Good Credit Rating

December 29th, 2017 by

If you’re like nearly all other Americans, you don’t have cash on hand to buy your new Toyota outright. A down payment, probably, but not the whole thing all at once. You’re going to need a car loan. Getting a car loan isn’t very hard to do, but getting a decent interest rate requires a good credit rating.

If it’s your first car loan, you might not have much of a credit rating at all. Establish a good credit rating in just a short while before trying to get a car loan.

Tips to Build a Good Credit Rating

  • Get a credit card. If you don’t have a credit card, apply for one with a small balance. Charge only purchases you can pay off immediately. Pay the balance in full every month. After just a couple months, you’ll be on your way to a good credit score.
  • Take out a small loan. Even if you have the cash to buy something outright, take out a small loan to make the purchase. Then, pay it off the next month to build your credit rating. Make sure you don’t miss any payments in the meantime or it can hurt you more than it helps!
  • Get your own cell phone. Apply for your own cell phone contract instead of using a buddy plan or family share plan. Having a cell phone in your own name helps build a good credit rating. Like a credit card or loan, it’s crucial that you don’t miss any payments.


When you buy a car, your credit rating can affect whether you are approved or not. Without a good credit rating, you might be approved but at a high interest rate that makes payments unmanageable. Conversely, a good credit rating can be the difference-maker, qualifying you for low subvented interest rates at longer terms so your payments are lower. It can even mean you don’t need to make a down payment.


At Jay Wolfe Honda of West County, we work hard to get you the best rates and terms that you qualify for from our lenders, even if your credit score is less than perfect. Let our financial services team help you get into a new or used vehicle today.

Posted in Jay Wolfe