Credit cards are a payment method that allow you to buy and pay later. By the end of the month, you have a grace period to pay off your bill without extra charges. If you pay later, you’ll be subject to charges.
If you don’t have credit history, applying for an auto loan might be a challenge. Nevertheless, with a qualified cosigner, you may able to buy a car and start building your credit history.
is an amount of money that the bank lends you. If you don’t have a healthy credit score, you can acquire a loan that allows you to build credit, known as credit-builder-loan. This allows you to put the amount of the approved loan in a certificate of deposit, which you will pay as you go for the chosen term. The certificate of deposit turns into the collateral and during the loan term, it gains interests. Once you finish paying the loan, the bank gives you the money plus interests gained.