How to Rebuild Your Credit with a Car Loan

How to Rebuild Your Credit with a Car Loan

A less-than-perfect credit score can lead to some serious hurdles when you’re ready to make some big credit-requiring purchases (such as a home), as well as causing many purchases to be more expensive. Don’t despair if you’re stuck in a bad-credit rut — there are ways to climb out of it. One way to do this is through the purchase of a vehicle, but the conditions have to be right.

Review Your Credit Report

This is a cause of anxiety for many people, but you’ll need to start out knowing your current credit score. You can get a free credit report annually from each of the three credit bureaus: Equifax, TransUnion, and Experian. Go to AnnuallCreditReport.com to request your free reports. It’s not uncommon for people to find several errors on their credit reports that have a negative impact on their credit score. All errors should be disputed and hopefully removed by the credit bureau. Remember, the three credit bureaus operate independently so your reports will likely have some different information.

Bad Credit? No Problem!

Now that you’ve got a clear picture of your credit situation, it’s time to go car shopping. Unfortunately, many car dealers will not sell to someone with poor credit. Integrity Auto Finance, however, can approve you for a car loan regardless of your credit. We look at your monthly income when approving a loan, not your credit score. And we will always treat you with respect no matter your situation.

Does the Dealer Report to All Three Credit Bureaus?

Additionally, you’ll want to choose a dealer that reports to the credit bureaus. Most Buy Here Pay Here car dealers — for bad credit car loans — do not report to any of the credit bureaus, or they may report to one or two. They do this as an effort to minimize cost, effort, and their risk of mistakes.

Unlike the other Buy Here Pay Here dealers, Integrity Auto Finance reports to all three credit bureaus.

Make Timely Payments on Your Car Loan

Now that you’ve chosen a reputable dealer to do their part, it’s up to you to do yours. Your credit will begin to rise when you make on-time payments to your car loan. If you are consistently late or begin to fall behind, this could end up damaging your credit further. There are a few things to keep in mind to help you stay current with your payments.

Schedule Your Payments Around When You Get Paid

Rather than stress about your loan payments every month, you can schedule them around your paychecks. Additionally, you can choose how often you want to pay — monthly, bi-weekly, etc. — to coincide with your pay days.

Enroll in Automatic Payments

Eliminate oversights and slip-ups by enabling automatic payments. At Integrity, you can enroll in our AutoPay program, where you can earn AutoPay Rewards every month that can be used for oil changes, repairs, and other perks.

Having bad credit isn’t the end of the world, and it’s certainly not impossible to overcome. Making timely payments on a car loan is one of the best ways to rebuild your credit over time. Contact Integrity today to get started!

 

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