How to Rebuild Credit for an Auto Loan in Las Vegas
At Reliable Auto Sales, we know that sometimes you need a car but your credit just isn’t cooperating. Don’t lose hope! It is possible to rebuild your credit. Even those with poor credit can purchase a new or used vehicle at our friendly dealership.
One of the fastest ways to build or (hurt) your credit is with a car loan. Those with poor credit should choose the longest term possible with the lowest payment. Then, make sure to pay those payments early!
If at all possible, pay more than the minimum. Ask your loan company to report your payments monthly to the credit bureaus. In just three to six months, you will see your credit score improve and by paying larger payments, you will also be able to pay the loan off quicker and pay less interest in the long run.
It’s important to note that those with poor credit will pay a higher interest rate than those who have better credit, but nonetheless, you can improve your credit rating with this method.
Make sure to choose a car you can afford. If your credit is poor and you are on a budget, stick to used car shopping.
Typically, new car loans offer lower interest, but the cars cost more. When doing the math, it’s actually smarter to purchase a used car, even with a higher interest rate, because it costs less in total.
Have a Down Payment
Even if your credit is bad, you need to save for a down payment if you want to buy a car. Sure, there are plenty of ads that say “no money down,” but if you have poor credit, the chances of buying a car with no down payment are slim. Most lenders will require at least a 10-percent down payment if you have bad credit.
Remember, your trade-in vehicle can also be used as down payment. However, a trade-in by itself may not be enough. It depends upon the quality of the car as well as your credit report. If your credit score is low, a bank may require a cash down payment in addition to your trade-in.
Reliable Auto Sales
Shopping for a pre-owned vehicle in Las Vegas? Head to Reliable Auto Sales. We can get you into your next vehicle while helping you rebuild your credit score!