How A Car Loan Helps with Rebuilding Credit
How A Car Loan Helps with Rebuilding Credit
If your credit score is already poor, a car loan may help you rebuild your credit as long as you implement certain habits and ditch others. For example, if you concisely pay your credit card loan bills every billing cycle without fail, this can positively affect your score. Instead, if you struggle to repay your auto loan, your credit score will suffer. Using an auto loan to rebuild your credit comes with specific pluses. Naturally, the most significant advantage is rebuilding and also increasing your credit score. With every on-time payment that you make, you are slowly increasing your credit score back up to where it should be. In addition, refinancing your loan at a lower cost can improve your score and improve your odds of securing other loans.
How to rebuild credit scores
Payment history plays a significant role in rebuilding your credit and can be a big reason your credit can be damaged or low. By far, payment history has the most significant impact on your credit score. More important, payment history makes up 35% of your overall credit score. Meaning a history of missed payments will have more influence on your credit score than any other factor. If you have had a habit of not making your bill payments on time, your credit score can take a big plunge. Instead, a history of timely payments can be perfect for your credit score. The length in which you have been a credit user or have had a specific credit account open has a weight of 15% on your credit score. However, not as much weightiness is given to payment history or debt loan. It's still essential.
Contact Pothier Motors for Financing Options
If you are considering finance or Leasing, contact Pothier motors today. We accept all credit, whether you have poor credit, great credit or no credit. Pothier Motors can help. Please apply online for our secure online financing application, which is found directly through our Finance Centre. Contact us today.