The Auto Warehouse is here to provide more options to customers with low or bad credit scores to purchase their own vehicle. We understand that it is not easy to avail of a loan especially when you have a bad credit history, but we are here to show you that it is still possible to get your own used car so that you have your own reliable transportation for you and your family.
We have been in the business for many years because we want to finance customers with challenged credit history. Aside from finally getting your own vehicle, buying your car from the Auto Warehouse will also help establish your credit score.
Let us first discuss how your auto loan can affect your credit report and credit score. When you apply for a loan, just like a car loan, it will affect your score positively because it is your credit score that will show your reliability as a borrower. It is usually calculated using the information from your credit reports. Your credit report, on the other hand, are the documents coming from the major credit bureaus namely Experian, Equifax, and TransUnion. These reports show the summaries of your monthly payments for both open and closed accounts. It will also show the list of companies who have taken a look at these reports, and if you have made any settlements.
So how does buying from The Auto Warehouse help build your credit?
The moment you take out a loan, you need to know that it will be affecting your credit standing. So by purchasing a car from The Auto Warehouse, you have a better chance of improving your credit score even if you have a bad or low credit score if you make sure that you pay your loan on time. You don’t have to do anything else, you just have to make your monthly payments on time and you will see how it will significantly help your credit score. However, if you fail to make timely payments, it will have an opposite result on your credit scores.
This is something you need to work on as early as now because the higher your credit score, the higher your chances of nabbing lower interest rates in your future loans.
In The Auto Warehouse, you can purchase your desired used car based on the terms you choose, and because this is going to be an installment loan, this is going to be very useful information when you get evaluated by credit reporting bureaus. That’s because one of the fastest ways to build your credit is by having a mix of installment loans and revolving credit. Examples of installment loans are your car loans or mortgage. And an example of revolving credit is the one you have with your credit cards. While a home loan can significantly boost your credit score, an auto loan will be enough to also improve your credit score.
It means that even if you have not applied for a mortgage, and you don’t have a credit card, taking out an auto loan can be considered as a strong building block to having stronger credit standing.
If there is only one thing you need to bear in mind if your goal is to establish your credit, that is to make sure that you make on-time monthly payments. That’s because late payments will negatively impact your credit score, too. Even if it is just one late payment, it can already be detrimental to the credit standing you are trying so hard to establish and take good care of. As a result, it will be a cause to more troubles in the future. For example, it will be a lot harder for you to get a loan in the future. What if you want to finally invest in a house and apply for a mortgage, your bad credit score will make it a lot difficult for you.
However, here in The Auto Warehouse, we are willing to find ways to make things easier for you and to make taking an auto loan possible. That’s because we are here to help you get the car that you can totally afford so that you won’t have to be late with your monthly payments. We will be more than happy to provide you all the possible options so that you can drive the car you have always wanted to have.