Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That down payment will lower the monthly payment so she can easily afford a new truck. She has been saving for 18 months and has half the money. It will take her about the same amount of time to save up the other half. Does she need to be concerned about her credit score now even though she will not be getting the loan for at least a year?

Question

Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That down payment will lower the monthly payment so she can easily afford a new truck. She has been saving for 18 months and has half the money. It will take her about the same amount of time to save up the other half. Does she need to be concerned about her credit score now even though she will not be getting the loan for at least a year?

A. • Yes, how she handles credit today will shape her credit score.
B. • No, credit scores are only used by businesses and their clients.
C. • Yes, every purchase she makes will show up on her credit score.
D. • No, no one will be checking until she actually takes out the loan.

Answer 1

A. • Yes, how she handles credit today will shape her credit score.

It is important for Juanita to be mindful of her credit score even though she will not be taking out a loan for at least a year. Building and maintaining a good credit score takes time, so it is important for her to start now in order to secure a good interest rate on her future loan. Making timely payments on credit cards, loans, and other bills, as well as keeping credit card balances low, can positively impact her credit score.