How to Improve Your Credit Score with a Car Loan
We’ve all been there – things are going along well and suddenly your job changes, your car breaks down, you need to make a trip to help a friend in Mesa, or you have an unexpected emergency. Now you can’t keep up with the bills. Falling behind can wreak havoc on your credit score, making it hard for you to rent a new apartment or even get a new job. The good news, however, is that it is possible to improve your credit score while you upgrade your transportation.
How Getting a Car Loan Improves Your Credit
Once your credit has been damaged, the only way to improve it is to show potential creditors you can pay your bills on time. A car loan is the perfect place to start so long as you adhere to the following golden rules:
- Don’t borrow more than you can afford.
- Make your payments on time.
- Communicate any issues with your lender.
- Keep your driving record clean.
By following these tips, you’ll be able to make steady strides to improve your credit, making it easier to finance a larger purchase with a lower down payment, obtain unsecured credit, and prepare for life changes in the future.
To learn more about the programs available to help you rebuild your credit, or to apply for financing for a new vehicle of your own, contact an associate at Cactus Jack’s Automotive near Avondale today. While you’re here, check out our guide to getting a car with complicated credit.
Check Out Our Blog For More Helpful Reads
Check out our blog for more tips on auto financing and how to save in your car buying journey:
You already know buying used is a smart option, but what kinds of benefits do you stand to gain? Cactus Jack's Auto near Mesa can answer your questions! Below, you’ll find our top five reasons to buy a used car. If you’re convinced buying used is right for you, check out our impressive pre-owned inventory! What is…
Your credit score is the score that’s created by analyzing your credit report from independent agencies like Equifax, Experian, and TransUnion. Your score is aggregated from a variety of factors, including: Payment history – Have you made your monthly payments on time? Credit utilization – How much of your total available credit have you used?…
Should you buy a used luxury car instead of a new or used mainstream car? That depends on your driving habits and budget. Either way, Cactus Jack's Auto offers a wide selection of used cars, as well as helpful financing solutions for Mesa and Surprise shoppers. Learn more about the benefits and potential drawbacks to buying a…