Car Loans Best Way To Create New Credit

January 20th, 2021 by


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Does a car loan build credit?


Having a Car Loan is a fantastic way to build or rebuild credit in two important ways: payment history and credit mix. Ole Ben Franklin Motors Alcoa in Alcoa Tennessee is usually the first and last stop in Credit Building in Alcoa.

Payment history is your track record of paying bills on time. It accounts for more of your credit score than any other single factor. Traditional lenders report your payments to the three major credit bureaus, which provide the data to calculate your credit scores. (Note: Buy-here, pay-here lenders often do not report payments to credit bureaus, but Ole Ben Franklin Motors Alcoa does report to all three credit bureaus to help build your credit back or establish new credit. We offer In-House Auto Financing through our Buy Here Pay Here Options, all while growing your credit for future purchases and more.

The chances of a New Car Loan affecting your credit report in a extremely positive way is very high, having an New Auto Loan added to your credit will report as an installment loan which will add a new positive credit or engage a credit mix all very good to build credit back up. If you pay your car payment on time every month, then your credit report will show that your auto loan is either “Current” or “Paid as Agreed” so your new positive payment history will have the greatest effect on your credit score and guide you in the right direction with a brand new start.

If you should fall behind on your payments without cause, it can damage your newly established credit that you are trying to build. Watch your credit very closely and make sure all payments are being reported properly so you get the credit where credit is due….If you are interested in credit building or credit rebuilding call Ole Ben Franklin Motors Alcoa at 865-980-8216 or check us out online at