How to Build Credit by Purchasing a Vehicle

By Product Expert | Posted in Credit, Finance, Tips and Tricks on Monday, February 3rd, 2020 at 11:37 am
Woman checking her credit report

Can Buying a Car Improve Your Credit?

A major concern for car buyers is their credit score. Will I be accepted for a car loan? Can purchasing a vehicle improve my credit? The good news is that you can build your credit by buying a car. Here’s how you should do it.

[ READ MORE: Tips to Quickly Build Credit ]

Paying Off a Car Loan

The best way to build credit with a car purchase is to take out a car loan and continue making payments. As you pay on time over a long period of time, like three years, you will prove that you are responsible with your money and your credit score will see an improvement.

However, you will need to be careful. While car loans can help buyers improve their credit, this can hurt your credit if you are late on payments. Bottomline, you should only take out a car loan if you are fully prepared to pay the agreed amount plus interest on time.

Apply for a Car Loan at OkCarz

Finding the right car loan to start building credit is difficult when you have bad credit to begin with. Here at OkCarz, we provide car loans to buyers with a variety of financial situations, including those with no credit or bad credit. If you need an affordable and reliable car and want to improve your credit score, consider contacting our team at OkCarz. We will help you find the loan that is right for your financial background.

Need a car loan? Aren’t sure what your credit score is? Fill out this online form for pre-approval right at home! Once you get pre-approved, stop by OkCarz to check out our vast variety of used vehicles to choose from.

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