Can Getting An Auto Loan Improve Your Credit?
Written by: Matthew Henderson
The answer to "Can getting an auto
loan improve your credit", is yes it can. If possible pay a
little bit more on your monthly payments. This helps due to
fact, of your credit score, which is determined, in one way, by
the amount of interest you are paying on your auto loan. Paying
a little more on your monthly payments will reduce the amount
owed on the auto loan, as well as pay off the loan quicker.
Therefore you'll be paying less interest. Do be sure to at least
pay the monthly amount due on time.
Other ways getting an auto loan can improv
e your credit score, is to allow it to be a learning tool.
Everything you did and learned to improve your credit score when
getting that auto loan can be applied to the rest of your bills.
Take a moment to sit down and put on paper all sources of your
income. Be honest with yourself, and write down everything that
comes from your income, house payment or rent, gas, power, water
bills, everything you use your income to pay.
After doing this, go through the list to see where you might cut
the fat, so to speak. Then take the extra money to pay a little
extra on other loans, credit cards, etc. This will bring down
the payments and lower the interest on them as well. You will
soon be on your way to a much better credit rating, and the next
time you need an auto loan you will do so with a much reduced
About the author:
Matthew Henderson is editor at "Auto-Fleet.com." Stop by for a
huge selection of information regarding auto warranties, online
auto loans, improving your credit, driving education,
traffic school and much more! Auto-Fleet.com
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