Start Building Your Credit Score With a Car Loan

Trying to build up a credit score can seem like a daunting task. Whether it’s your first vehicle or even your first monthly bill, it’s never easy paving the way to adulthood. Before you’ve even had a chance to prove that you’re responsible, lenders are making judgements about you.  The good news is that you can build your credit score quickly and easily with the helpful guidance of our professional lending department. It will take a little time, a little elbow grease and reliable lender but securing an auto loan is a great way to show you are capable of making monthly payments. Making regular monthly payments to a lender who reports to the credit bureau helps establish a good credit rating. This can mean paying monthly bills such as credit cards, phone bills, and yes, even car loans. Having no credit doesn’t mean you can’t get a car loan, simply follow our steps to building good credit and you’ll be driving your new car home in no time.

How to Build Up Your Credit With a Car Loan

Step One: Set a (Realistic) Budget

Make an honest assessment of what you need and whether or not you’re able to afford it. Getting a car loan with bad credit means that you will likely have a higher interest rate, you may have to put money down upfront and you will likely have to choose a used, less expensive vehicle. It may not be the brand new car you imagined yourself in but if you take the time to rebuild your credit, you can always upgrade in the future. 

Step Two: Build out a Budget 

Go over your financials and take note of how much you have to spend on your new vehicle.To build your credit (and not destroy it)  you must be able to make the monthly payments on time and in full. These are the essential steps to credit building and it goes for all your bills not just your car loan. This is how you show creditors how reliable you can be. Setting a realistic budget is a big step towards completing that. 

Step Three: Visit Your Local Dealership

Start shopping for vehicles that fall within your budget and check off most (or all of) your needs. Dealing with a trustworthy dealership like Quesnel Toyota can help you find more of what you’re looking for without sacrificing your budget.  Choosing an affordable vehicle will not only make your monthly payments more affordable, it will also increase your chances of credit approval. Come to visit the dealership with budget and few of your must-haves and let us do the legwork for you.

Raising your credit score is an important long-term goal. If you don’t have the time to wait for a low-interest car loan and need a car sooner rather than later, try looking for vehicles that you will be able to pay for upfront. If you have more questions about building your credit, securing financing or what vehicle will work best for you budget contact Quesnel Toyota online or over the phone.