If you’re a first-time car buyer on the hunt for a new or used vehicle to purchase, you may or may not be wondering how buying a car may affect your credit. Will it help to improve your credit? Well, the answer ultimately depends on you.
Auto Financing and Your Credit
Having a car loan or auto financing on your credit report will most likely affect your credit history. Car loans and auto financing are generally added to your credit report as an installment account, which requires you to pay the same amount every month for a fixed period.
Does Auto Financing Help Build Credit?
A car loan or auto financing doesn’t automatically build credit, but it gives you an opportunity to build your credit through making on-time car payments. As we mentioned earlier, paying on time consistently every month can improve your credit history. Credit Acceptance reports to the three major credit bureaus, giving car buyers that are financed through our program the opportunity to improve their credit with on-time car payments.
If you’re in the market to buy a car, have a history of bad credit or no credit, and need help getting approved for financing, Credit Acceptance can help! Simply fill out the form on our website and we’ll connect you with a car dealership in your area that can help you get started!
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