Car loan a good way to rebuild credit?
Date: Tue, 01/15/2008 - 20:04
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?
If we get the loan how much would a steady payment history help my credit?
Car loans fall under the "installment accounts" part of your cre
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.
