Do Car Loans Lower Your Credit Score
by Nate Balcom
Among all the questions that people have about car loans one of the most frequently asked is whether or not financing can lower your credit score. Ultimately the answer is a yes, but that depends on one very crucial factor which is being on time with each of your monthly payments. If you're unable to do this each month you will quickly find out that auto financing can lead to you ruining your credit. Otherwise the opportunity to improve your score is very possible.
You may be wondering how this is possible and it's fairly simple, but very time consuming to accomplish if you already have poor credit. With that said you will want to reframe from using resources that offer "quick fix methods" because making your payments on time is the only sure way to improve your score. A good way to at least ensure you have a fair shot at helping it bounce back is to get a loan from a financing institute that works with applicants that have poor credit.
Companies like this are more experienced with your situation and are more inclined to push for a lower interest rate and reasonable monthly income you can afford. You will also want to try to pay for most of the car so that the loan you need is not as substantial and difficult to pay back. One website you may want to try applying with is SmartCarFinder.com as they may even give you a chance to locate a cheaper vehicle near you. By utilizing this site you're more likely to get the financing you want to help you revive your credit score.
You may be wondering how this is possible and it's fairly simple, but very time consuming to accomplish if you already have poor credit. With that said you will want to reframe from using resources that offer "quick fix methods" because making your payments on time is the only sure way to improve your score. A good way to at least ensure you have a fair shot at helping it bounce back is to get a loan from a financing institute that works with applicants that have poor credit.
Companies like this are more experienced with your situation and are more inclined to push for a lower interest rate and reasonable monthly income you can afford. You will also want to try to pay for most of the car so that the loan you need is not as substantial and difficult to pay back. One website you may want to try applying with is SmartCarFinder.com as they may even give you a chance to locate a cheaper vehicle near you. By utilizing this site you're more likely to get the financing you want to help you revive your credit score.
