Third Coast Auto Group Official Blog
Improve your credit score with an auto loan
By Product Expert | Posted in Finance on Wednesday, April 26th, 2017 at 3:08 pm
Whether car shoppers have low credit, bad credit or no credit, shopping for a major purchase (like a house or a car) can be stressful because of the loan process. However, with the right lender, even a basic car loan can help improve your credit. Wondering how you can improve your credit score with a car loan? Keep reading to find out.
Can you get a car loan after bankruptcy?
One common question people ask is “Can you get a car loan after bankruptcy?” Having bad credit or a history of not being able to pay dept can affect your interest rate and vehicle availability, but many people can still get a car loan. Even better, getting a car loan may even help you improve your credit over time!
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How you can improve your credit score with a car loan?
While missed payments or repossessions can have a negative effect on your credit score, the reverse is also true. When you make regular payments on a car loan, and your lender reports those payments to the main credit agencies, you build up a recent history of good credit that can have a positive influence on your credit score. A car loan, even when you have bad credit, can help you turn your credit score around, and get you a new-to-you vehicle as well.
How long does it take to improve your credit score?
Depending on how bad your credit score is, and why, determines how long it will take to turn that number around. Most credit information will no longer affect your credit score after seven years. Other one-time issues (like a late mortgage payment or forecloser) can take anywhere from nine months to seven years to bounce back from, depending on the severity of the problem and your starting credit score.
Once bad information is no longer appearing on your credit score, you want to replace it with good financial information. If you are interested in an affordable car loan in the Austin TX area, contact a member of the Third Coast Auto team. We offer a wide selection of high-quality used vehicles available with low down payments. Ask us about improving your credit with a car loan today.
