How Does a Car Loan Improve Your Credit Score?
Here at U.S. Auto Sales, we cater to car shoppers on a budget and no matter what your credit score might be – we are here to help. Potential customers who struggle with credit may not know that an automotive loan with on-time payments can help raise your credit score and many people want to know – how does a car loan improve your credit score? We are here to answer your automotive questions at U.S. Auto Sales with 35 locations in Georgia, Florida, Tennessee, North Carolina and South Carolina.
How Do Auto Loans Affect Your Credit Score?
It may seem illogical that adding an auto loan to your credit history can improve your credit score – but over time with timely payments, a car loan can have a positive impact on your credit. A car loan is considered an Installment Loan – a loan that has equal installments paid over a period of time. Installment Loans are different than a credit card loan or home loan and will help diversify your credit portfolio and will have a lasting impact on your credit score even after the loan has been paid.
To be transparent, when you first apply for a car loan it will have a small negative impact on your credit score – which is reversed and overshadowed over time as you make on-time payments. The benefits over time of an auto loan will improve your credit, outlast the negative impact and will show potential lenders that you are a reliable customer. With the addition of a car loan and on-time payments to your credit history, you will see your credit score rise in no time.
Find Affordable Car Loans at U.S. Auto Sales
U.S. Auto Sales is not your normal, run-of-the-mill used car dealership. We are here to help you find a safe, reliable and affordable pre-owned car, truck or SUV. We provide affordable car loans with easy online pre-qualification, a layaway program and flexible down payment options that will help you find a quality vehicle at a price that will fit your budget – no matter what your financial situation might be. Give us a call today to learn more about how U.S. Auto Sales can help you find an affordable pre-owned vehicle!
How does a car loan improve your credit score? Find out with this quick breakdown created by U.S. Auto Sales and visit us today to find a used car, truck or crossover that will fit your budget!