|HOW AN AUTO LOAN CAN HELP YOUR CREDIT|
|Posted on: Apr. 08, 2017 in Car Loans, Credit Score, Credit|
When you have bad credit, it may seem like you have no options - particularly when it comes to buying a car. But contrary to what you might think, bad credit does not automatically disqualify you from getting a loan to buy the car you need. What’s more, a bad credit auto loan may actually help improve your score and help you get ahead.
People often think that they should consider buying a car through a private sale when they believe their credit isn’t good enough for a loan. While not every person selling a used car is shady, there’s always a risk when you enter into a private car sale. When you buy through a dealer, you’re working with an established business. There are certainly times when you can successfully get a used car privately, you need to do lots of extra legwork.
Applying for a bad credit auto loan can and purchasing your car through a dealer can work to your advantage. You’ll have access to a wider selection of vehicles making it more likely you’ll find the car you want. There’s also a better chance that you’ll be working with a dealer who has gone through a vetting process, protecting you from an unscrupulous seller.
There’s also the matter of the loan itself and what it can do for you. When your credit is poor, taking steps to raise it is always in your best interest. By taking out a loan and paying it back as agreed, you’ll show that you are a responsible borrower and this information can be reported back to the credit bureaus. Also, if you’ve only ever had credit cards – known as revolving credit – adding an installment loan like an auto loan can help round out your credit history.
By using a car loan to improve your credit, you’ll be that much ahead when it comes time for your next big purchase!
If you’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you ever step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!