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 Posted: Tue Jan 15, 2008 9:04 pm Subject: Car loan a good way to rebuild credit? |
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I filled out an online loan app, local dealer called me and said with $1000-$1500 and proof of my income he can do the loan. I know the interest rate is going to be high. I have 3 CO's that total around $500, scores in the low 500's. One positive small CC.
If we get the loan how much would a steady payment history help my credit?
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LoneGunman
Joined: 14 Jan 2008
Posts: 226
Debtcc Points: 1629
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| Posted: Tue Jan 15, 2008 9:35 pm Subject: |
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Car loans fall under the "installment accounts" part of your credit report. I don't know exactly how they figure into the score, but it will help.
If you show steady on-time payments on an installment account, it looks good for you because it shows you can manage "larger" payments than the $20-30 min payments on a credit card.
Overall it will help to improve your credit. But if that is one of your primary concerns in signing the loan -- then make sure they actually report their account to the bureaus. I say that because many small car lots don't actually report, and so that wouldn't help your credit at all.
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DebtCruncher
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