3 Tips For Building Credit With Used Car Loans
Living with bad credit is difficult, but not impossible. You could end up paying more for your car insurance or having to put down a higher security deposit for your rental home. But this isn’t the end of the road. While you cannot set things straight overnight, there are a few purchases that can slowly but surely help to get your credit score back on track. Buying a used car is just one of them. Here’s how financing a car can help:
It helps to improve your payment history:
A good payment history is one of the key factors affecting the credit score. The more payments you make on-time, the better your chances of earning a good credit score. What better way than a car loan to prove to lenders that you can make payments on time! The best thing about paying your car loan on time is that it stays on your record for a very long time – even after you close the account. Used cars are not only affordable, but with help from the right dealer, you are sure to get a good deal, thus helping you save money while improving your payment history.
Some debts are good:
A huge credit card debt does very little to impress prospective lenders. Thankfully, not all debts are treated alike. For example, a debt incurred while owning a car that’s within your budget range and one where you can afford to make regular monthly payments are sure to create a positive impression on lenders. With a car loan, you can be sure that at the end of a certain period, you will have zero balance on the debt account. This isn’t the case with a credit card debt.
It has a positive effect on your credit history:
A long history of credit shows that you have been managing debt well for a very long time. In fact, creditors measure the average age of your open accounts to determine your credit score.
But before you choose a used car, remember to find worthy used car dealerships who can not only offer a good deal but also help you improve your credit score. Call us at 1-902-468-0377 if you are looking for used car dealers in Halifax. You can also see our full inventory of 100+ vehicles here: https://mvpns.ca/used-cars-for-sale/