How Getting A Car Loan Can Help You Rebuild Your Credit

How Getting A Car Loan Can Help You Rebuild Your Credit

Do you have bad credit? Do you need a new car? If your answer to those questions was a YES, you are probably wondering how I can get a car loan with my bad credit; and if there’s some way to actually do that, how will it help me improve my credit score? Well just read on and you’ll get the answers to your questions.

What is Credit?

Credit is defined as the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. The key word here is trust. From a business standpoint, your credit score is like your trust meter. If your credit score is low, companies will be less likely to trust your ability to repay a loan. On the other hand, with a higher credit score, there is a good chance more companies will be willing to offer you a loan because they trust your ability to repay that loan.

Factors That Affect Your Credit Score

Payment history is a major factor because it lets companies know if you pay your bills on time and if you are making payments in full. Other factors that affect your credit score are the number of open credit cards you have, how many are maxed out, how many have you recently applied for or received, and have you also applied for any loans recently.

Why A Car Loan?

Car loans are not like credit cards. With credit cards, you can continue to make purchases against your cards and make payments based on the amounts of those purchases; but there is no collateral for the credit card to take back if you fail to make the payments. A car loan payments, on the other hand, are fixed at a specified amount and paid over a predetermined number of months, and the vehicle is the collateral for the loan. That means if you fail to make your car payments, the loan company can repossess the vehicle and sell it to recoup some of its losses. By making your car loan payments for the prescribed amount on time every month, you are showing the loan company that they can continue to trust you to make those payments until the loan is fully paid off, during which your credit score will continue to increase.

If you can, it’s always beneficial to make a down payment,  no matter how small it may be. Doing so will improve your chances of getting approved and will lower your monthly payments. Always choose a vehicle that is within your budget, or even less than afford each month to prevent going over if unexpected expenses pop up. That also gives you the ability to make higher payments than required, which will improve your score and will tell the loan company that you are responsible.

What Exactly Do I Need to Do Before and After Getting a Car Loan

Fairless Motors has been one of the area’s best family owned dealership for pre-owned cars for almost 30 years. Our finance department has over 50 years of combined expertise to help customers with any credit history get approved. Fill out our short credit application and you’ll be on your way to an instant approval. Our experienced team will get you behind the wheel of the vehicle that best fits your needs and your budget. We maintain an inventory that includes cars, crossovers, SUVs, minivans, and pickups that span the auto industry.

40 thoughts on “How Getting A Car Loan Can Help You Rebuild Your Credit”

  1. Wow that was unusual. I just wrote an very long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say superb blog!

  2. Wonderful items from you, man. I’ve bear in mind your stuff prior to
    and you’re just too great. I actually like what you’ve bought here,
    really like what you’re saying and the way by which you are saying it.

    You are making it enjoyable and you still care for to keep
    it wise. I can not wait to read far more from you.

    This is actually a terrific web site.

  3. Do you mind if I quote a couple of your posts as long as I
    provide credit and sources back to your webpage? My blog site is in the
    very same area of interest as yours and my visitors would certainly benefit from some of the information you
    provide here. Please let me know if this alright with you.

    Many thanks!

  4. I got this web page from my buddy who shared with me on the topic of this web site and at the moment this time I
    am browsing this website and reading very informative content at this place.

  5. Hello! I could have sworn I’ve been to this website before but after
    going through a few of the posts I realized it’s new to me.
    Anyways, I’m certainly delighted I found it and I’ll be bookmarking it and checking back often!

  6. Hi there, i read your blog occasionally and i own a similar
    one and i was just curious if you get a lot of spam feedback?
    If so how do you protect against it, any plugin or anything you can advise?
    I get so much lately it’s driving me mad so any assistance is very much appreciated.

  7. Hello this is kinda of off topic but I was wondering
    if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding know-how so I wanted to get advice from someone with experience.
    Any help would be greatly appreciated!

  8. Greetings from Colorado! I’m bored to tears at work so I decided to browse your site on my iphone during lunch break.
    I enjoy the info you provide here and can’t wait to take a look when I get home.
    I’m amazed at how quick your blog loaded on my cell phone ..

    I’m not even using WIFI, just 3G .. Anyhow, great site!

  9. Every weekend i used to visit this site, for the reason that i
    want enjoyment, for the reason that this
    this web site conations genuinely fastidious funny stuff too.

  10. First of all I want to say fantastic blog! I had a quick question that I’d
    like to ask if you do not mind. I was curious to find out how
    you center yourself and clear your thoughts prior to writing.
    I have had a difficult time clearing my thoughts in getting my ideas out there.
    I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes are generally lost just trying to figure out how to begin. Any ideas
    or tips? Cheers!

  11. Hello, i think that i saw you visited my site thus i
    came to “return the favor”.I am attempting to find things to enhance my site!I suppose its ok to use some of your ideas!!

  12. What i do not understood is in fact how you are now
    not actually much more well-favored than you may be
    now. You are so intelligent. You know thus
    considerably in the case of this subject, made me in my opinion believe
    it from a lot of varied angles. Its like men and women are not fascinated until it is something to
    do with Girl gaga! Your individual stuffs outstanding.
    Always maintain it up!

  13. Fascinating blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple adjustements would really make my blog shine.
    Please let me know where you got your theme. Cheers

  14. I have been exploring for a little for any high-quality articles or weblog
    posts on this sort of house . Exploring in Yahoo I ultimately stumbled upon this web site.
    Reading this information So i am happy to express that I’ve
    an incredibly good uncanny feeling I discovered just what I needed.
    I such a lot indubitably will make certain to don?t omit this web site and give it a look regularly.

  15. Howdy! I realize this is somewhat off-topic however I had to ask.
    Does running a well-established website such as yours take a large amount of
    work? I am brand new to blogging however I
    do write in my diary daily. I’d like to start a blog so I will be able to share my personal experience and
    thoughts online. Please let me know if you have any ideas or tips
    for new aspiring bloggers. Thankyou!

  16. Hey there I am so delighted I found your webpage, I really found you by mistake,
    while I was browsing on Yahoo for something else, Regardless I am here now and would just like to say thanks for a marvelous post and a all round exciting blog (I also love the theme/design), I don’t have time to read
    through it all at the moment but I have saved it
    and also added in your RSS feeds, so when I have time I will be back to read more, Please
    do keep up the awesome work.

  17. I used to be recommended this web site by
    means of my cousin. I am now not certain whether this publish is written via him as no one else understand such distinct about my difficulty.
    You are incredible! Thanks!

  18. Excellent web site. A lot of helpful info here.
    I am sending it to several pals ans additionally sharing in delicious.
    And obviously, thanks in your sweat!

  19. Hello there, just became alert to your blog through Google,
    and found that it’s really informative. I am
    going to watch out for brussels. I will be grateful
    if you continue this in future. Numerous people will be benefited from
    your writing. Cheers!

  20. Hello there! I just would like to offer you a big thumbs up for the great info you have
    got right here on this post. I’ll be coming back to your blog for more soon.

  21. Today, I went to the beach front with my kids. I found a sea shell
    and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her
    ear and screamed. There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is totally off topic but I
    had to tell someone!

  22. Greetings! This is my first visit to your blog! We are a group
    of volunteers and starting a new project in a community in the same
    niche. Your blog provided us valuable information to work on. You have
    done a extraordinary job!

  23. Hi there! Do you know if they make any plugins to protect
    against hackers? I’m kinda paranoid about losing
    everything I’ve worked hard on. Any suggestions?

Leave a Reply

Your email address will not be published.