Get A Car Loan And Fix Your Credit

If you are struggling with bad credit chances are credit repair is always on your mind. Credit is needed to do most things, even when you are not looking for a loan. Your insurance rates, house qualifications, and even your job may depend on your credit history. If you are looking for a way to build your credit while also getting you to where you need to go Good Fellow’s Auto Wholesalers suggest taking out a car loan to help you meet your goals. If you are not sure how a car loan can help fix your credit, our short guide below can help.

Your payment history is listed in your credit report, this tells lenders or other companies how well you are able to follow a payment plan. There is a notation placed in your file every time you are late on a payment, or when a payment is missed. The more marks, the worse your credit history appears and vice versa.

Securing and paying a car loan on time is a significant way to help improve a poor credit profile. It is important to remember that purchasing a car is a considerable commitment. It will increase your overall debt which will be listed in your credit report. While this isn’t a bad thing, it can affect future loan approvals from other lenders until the amount is paid off.

Your credit score will decrease slightly right after being approved for a car loan, which is normal. Once you begin paying your car payments on time, your score will start to increase at a steady pace. Installment loans paid on time have a very good effect on your credit rating. Not only are they a part of a good credit mix, but they also appear as installment loans on your report.

We are always here to help when you need advice or assistance in building your credit. Obtaining a car loan will help improve your overall score, but you also have to monitor the rest of your finances. Reduce your credit card usage and make sure to pay your bills on time. For more information about building your credit through car loans or to speak with us about securing a loan for your car, give us a call at 1 (855) 581-9590 today.