How To Rebuild Your Credit Score
Rebuild Your Credit Using An Auto Loan in Cochrane, Alberta
The process of rebuilding your credit can be daunting for many, but with an auto loan, you will be able to get your credit score back up, all while driving the vehicle of your dreams. Cochrane Dodge offers many financing options to cater to many different credit scores, ensuring that you are getting the vehicle you want. Browse our new inventory to find a vehicle that fits your budget and get your credit improved today.
How Does Auto Loans Rebuild Credit Score
Auto loans help you build credit as they provide reoccurring monthly payments and a substantial loan amount. These two aspects help improve your credit as it shows you can meet obligations on time and that lenders trust you with large loan amounts. Also, as you make payments, your credit will improve, possibly allowing you to refinance at a lower rate or be eligible for other loans.
Benefits Of Rebuilding Credit Score Using Auto Loan
Secured Auto Loans
Getting a secure loan is an attractive option as it usually offers lower interest rates than an unsecured loan. With a secure loan, you will need collateral, which in the case of an auto loan, the collateral is the vehicle you are purchasing. Your monthly payments will also be lower with a secure loan, reducing the risk of non-repayment. As long as you keep up your payments, you will rebuild your credit and get a new vehicle at the same time.
Getting An Auto Loan Is Not Hard
Since you will have collateral for the loan, getting an auto loan is much easier than regular borrowing. Getting a subprime loan is possible for those with lower than average credit scores, giving them a chance to improve their credit while getting a new vehicle.
How To Rebuild Credit Score Using Auto Loan
- Get your current credit commitments under control before attempting to get a new auto loan.
- Get around a 10% down payment to increase your chances of being approved, while subprime buyers sometimes get approved without a downpayment.
- Look at budget-friendly vehicle options that have lower running costs and an affordable purchase price.
- Make sure to consistently make your payments on time since late or missed payments stay on your credit report for seven years.
Getting the best financing terms is more manageable than ever, with our Finance Centre offering a financing application to get customers preapproved. Once our finance associates review your application, they will be able to cater the financing options to your specific financial situation. If you still have questions, Contact Us.