Recent Grads Credit Misconception

by Julia Guardione Updated on: May 23, 2019

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 an 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 simple way to start today.

About The Author


Julia Guardione

Julia Guardione is RateGenius’ auto refinance expert. She is a graduate of Texas State University and a lover of all things outdoors. She lives in Austin, Texas with her dog and cat. She’s always open to new ideas, so if you have any suggestions or questions, email her at pr@rategenius.com.


Read More

by Stephanie Colestock

What You Need To Know About the New Experian Boost

Improving your credit score usually takes years’ worth of effort. With Experian Boost, you can increase your score in seconds. By the time you reach adulthood, you already know that your credit score is very important. Even if you don’t know exactly how those three-digit numbers will…

by Stephanie Colestock

When Should I Refinance My Car Loan?

Were you happy with your car loan when you got it? Not many are, so you might consider refinancing. ● When considering a refinance, sooner is usually better than later. ● One of the best times to refinance is when interest rates are down. ● Take action…

by Chonce Maddox

Not all Credit Scores are Created Equal — Just Look at UltraFICO

Did you know you have more than one credit score? Which one is the best or the right one? Your score matters. Your credit score is one of the most important numbers influencing your financial health. For lenders, it is a major factor for determining your trustworthiness as a…

review review

Customer Reviews

Read our 11192 Certified Reviews

4.9

READ OUR REVIEWS
apply now apply now

Apply Now

Lower your interest rate and drop monthly payments by an average of $76*/month!


GET STARTED