How To Rebuild Your Credit with a Car Loan
Watch your credit score improve with help from Rainbow Motors.
Because Everyone Deserves A Dependable Car
Having bad credit can feel like a roadblock in a number of areas, whether you’re interested in buying a car, a new home, or taking out a line of credit. The good news is an affordable car loan on a used vehicle can be an excellent way to build your credit over time, even after bankruptcy or a consumer proposal.
Tip #1: Get a Car Loan You Can Afford
The key to using auto financing as a means of rebuilding your credit is to take out a car loan amount that your current finances are able to handle comfortably. You don’t want to take out a loan so high that you will barely be able to cover payments month to month or with terms that take too long to pay off. Fortunately, here at Rainbow Motors, we can help you get approved for an affordable car loan even if your credit needs some work!
Tip #2: Commit to Your Payments
Your payment history makes up 35% of your credit score, so keeping up with your bill payments is key to showing the credit bureau that you’re a responsible candidate. When you make your payments consistently and on time, you’ll instantly see your credit score go up, even by just a few points.
Tip #3: Pay Off Your Loan
The length of time you’ve been a credit user or have had a certain credit account open has a weight of 15% on your credit score. The quicker you pay off your loan, the better the chances of your score going up once you do. At Rainbow Motors, we offer an easy trade-in process, whether you’re ready to sell your car for equity or upgrade it to something new!
Get Approved with Rainbow Motor Sales
Here at Rainbow Motor Sales, as a bad credit car dealer in Michigan our number one goal is to see you drive away happy, whether you have good credit, bad credit, or no credit. For more information about our finance-first approval process, bad credit financing, or rebuilding your credit, don’t hesitate to contact us anytime!
