Find out How a New Car Can Help Your Credit Score in Heflin, AL
Whether you have pristine credit or are looking to rebuild poor credit, an auto loan may help your score rise, should you handle it correctly. An auto loan is a big debt to shoulder, and making your monthly payments on time can maintain or even increase your credit score. When you shop for new Ford cars, trucks, and SUVs at Buster Miles Ford, our experienced finance team will walk you through the process of finding you an auto loan that fits your budget best. If you’re in the hunt for a new Ford Explorer SUV for family adventures or a durable Ford F-150 pickup for the worksite, stop by and see how our finance team can help you find the best auto loan for you.
What are Credit Inquiries?
You finally found the Ford vehicle you’ve always wanted and are ready to hit the open road. But when you leave our showroom, you’ll likely see a drop in your credit score. Fear not, this is expected. Our finance team has worked tirelessly to build relationships with a variety of lenders to ensure you get the best auto loan for your budget. When one of these institutions takes a peek at your credit that’s called a credit inquiry. Credit inquiries temporarily lower your credit score because the lender is determining what kind of risk you may be as a borrower. Those with better credit may not see as much of a drop, but a ding in your score is usually the case. This will quickly rebuild as you make payments on time.
How an Auto Loan Can Help (or Hurt) My Credit
The most important benefit of an auto loan is adding to your credit history. An auto loan — which is an installment type of loan like a mortgage or a school loan — can improve your credit score with each payment, especially if you’re credit history does not have an installment loan already part of it. Whether or not an auto loan helps your credit score is entirely up to you. Making payments on time is an easy way to maintain or improve your credit, while late payments will certainly hurt it. The later you are with your payments, the more it will affect your credit. So, the easiest way to maintain or improve your credit score with an auto loan — or any line of credit — is to make sure you make those on-time payments consistently.
How Can I Ensure my Payments are On Time
Know your budget. We all want a shiny, brand-new car, but if the monthly payments are going to add stress to your wallet, take a look at some of the pre-owned vehicles at Buster Miles Ford. We sell high-quality used cars, trucks, and SUVs that are often low-mileage and at a lower price tag that may make your monthly payments a bit easier. And don’t forget auto-payment is everybody’s best friend. You can set up autopay for just about any loan and remove the risk of forgetting to pay. The most important factor in credit scores is your payment history, accounting for roughly 35 percent of your score. Don’t miss a payment that you have because you lost track of the day!
Find an Auto Loan that’s Right for You at Buster Miles Ford
Finding the right Ford car, truck, or SUV for your adventures around Haflin is the easy part. Come on by our dealership and let our expert finance team find you an auto loan that is not only best for you, but can also help you raise your credit score. Search our online new and pre-owned inventory and find the car that fits your monthly budget best at Buster Miles Ford!
