Looking to increase your credit score? One way to build it back up is through new car payments! Read below to see how you can reestablish your credit by purchasing a car:
People use many different methods to build up their credit whether it be through credit card payments, utility bills, mortgages or even car payments. Lenders and credit reporters like to see a diverse credit history with revolving credit (credit cards) and loans (mortgages, student loans, auto loans). Auto loans are not as expensive as mortgage payments so it’s a great place to start. Auto loans can also carry more weight than say utility bills or cheap credit card payments. They also provide you with plenty of flexibility since you can make double payments if you run into extra cash and refinance after a few years to get lower interest rates.
Now before you go out to buy that new car there are some important factors to consider:
- Do I really need a car? – If you take the train to work everyday and walk a lot, does it make sense to make the purchase?
- Don’t go overboard – Don’t buy a car that has extra amenities. If you don’t 100% need it, then don’t buy it!
- Do your research – Make sure you put some time and effort into buying the best car for you. This is a big decision and you need to think wisely.
We recommend using Blue Sky Auto Finance for your next auto loan. You can get same day car loan approvals and can be approved with good, bad or no credit at all.
CLICK HERE for more details.