Can a Car Loan Help Me Rebuild My Credit?
A car loan is one of the most effective and efficient ways you can rebuild your credit score. At Abbotsford Auto Loans we can help you start rebuilding your credit with a sub prime car loan. An automotive loan, like many forms of credit, is report monthly to the credit bureau. Generally car loans establish credit faster than a credit card can and the amount reporting is higher. For example if you qualify for a 25k car loan and establish 25k worth of credit in a year or two this credit can dramatically offset previous issues. Verses a $500 credit card.
By having a car loan, it shows future lenders that you can handle this level of debt. Many people who are looking to rebuild their credit will start out slow and try to have credit card limits increased over time and this does help but takes years to get to the same level of credit. Lenders like to see both installment and revolving credit reporting on the credit bureau.
Financial Institutions usually take four major factors into consideration for auto loans:
- Down Payment
- Vehicle Specifics
- Time at current job
- Time at current residence.
- Credit History