Credit can be a major roadblock to new car buyers. Growing your credit can be a challenge for some, but can you use a car loan to build credit?<\/p>\n\n\n\n
In the same way that there are different ways to build your credit score,<\/a> a few factors influence the fluctuation of credit over time. FICO<\/a> \u2013 the data analytics company that developed credit calculation from credit reporting agencies \u2013 lists payment history, amounts owed, length of credit history, new credit, and types of credit as some of the key influencers of your credit score.<\/p>\n\n\n\n Some ways you can influence your credit include your ability to make payments on time, the amount of money owed, how long you\u2019ve held the loan or credit line, how frequently you open new credit accounts<\/a>, and the mix in types of credit (credit card, installments, retail accounts, mortgage, auto loans).<\/p>\n\n\n\n A long-term loan like an auto loan<\/a> can prove to credit institutions that you\u2019re a \u2018responsible borrower\u2019 which is one of the significant premises behind the credit system. When applying for any loan, it\u2019s important to get the best rate possible. While your initial rate may not be stellar, there is always the option to refinance your loan<\/a> in the future once your credit has improved. Refinancing is the process of getting a new loan to pay off your existing loan. And, while new loans can cause your credit to briefly lower, a refinanced loan can significantly improve your interest rate. When deciding to refinance, wait until you\u2019ve seen significant growth to your credit and during a period of low interest rates<\/a> for maximum effectiveness.<\/p>\n\n\n\n An auto loan can be a big step, but there are smaller, easier ways to build your score until you\u2019re ready to use an auto loan<\/a> to build credit.<\/a> One of the easiest and most common ways to build credit is by paying down existing debt balances and using credit cards. If you\u2019re new to credit, building a credit history with credit cards for small purchases and paying off your full bill each statement will get you well on your way! If you already have credit lines, paying off your existing debt down to 30% utilization<\/a> is another great way.<\/p>\n\n\n\n Financing a car is a big deal. At Charge-A-Car<\/a>, our financing<\/a> options can get you back on the road while building your credit. A car is a necessity, and you can\u2019t afford not to be on the move! While an auto loan isn\u2019t a magic bullet for improving your credit, it\u2019s one of several options you can use to work towards a higher score. Let our team help you achieve your dreams of car ownership<\/a> and great credit!<\/p>\n","protected":false},"excerpt":{"rendered":" Credit can be a major roadblock to prospective buyers. Growing your credit can be a challenge for some, but can you use a car loan to build credit?<\/p>\n","protected":false},"author":387,"featured_media":100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[24,75,114,117,7,60,118,43,115,11,25,33,31,12,113,15,116,8,71,58,9,61],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\nHow A Car Loan Can Affect Your Score<\/h2>\n\n\n\n
No Credit? Smaller Ways To Build Credit Before An Auto Loan<\/h2>\n\n\n\n
Get On The Road Today While You Build Credit<\/h2>\n\n\n\n