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Credit card creates credit history Credit card creates credit history
8/19/2008
Dear Action Line: My son graduated from college in 2005, got a good job and tried to get a new car loan. He had not used any credit cards in college, as I hounded him not to. He was denied the loan because he had no credit history and was considered a high credit risk. We made the down payment on the car and co-signed the loan. Had we not done this his interest rate would have been 11.4 percent (not 4.5 percent) and his monthly payment would have been beyond his means. — S.H., Tulsa.