Bad credit scores can be a significant barricade to your life. They can result in higher interest rates, and can even keep you from getting the auto loan you need for reliable daily transportation.
While there is no magic wand for a good credit score, there are some things you can do to steadily build your credit eventually get the affordable auto loans you deserve.
In just a few short minutes, you can fill out our secure online pre-approval form! Our finance team will review your situation take care of the rest!
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According to MSN Money, paying off the balance on your credit cards can significantly improve your score, even more than mortgage, auto, or home loans. Typically, lenders prefer to see a big difference between the amount of money you can borrow and the amount of money you are borrowing, and paying off or paying down your credit cards is a great way to increase the gap.
It happens more than you might think, so you need to be diligent and check for errors in your credit report that might negatively affect your score. Maybe an overdue payment was paid but not updated; maybe you have very old information that needs to be wiped clean; maybe the information is not even yours: mistaken name, address, etc. These errors happen, and you should be aware that mistakes on your credit are possible.
Automotive loans are one of the best and most common ways to improve your credit score. Not only do the loans help you drive a reliable vehicle, they also let you demonstrate your ability to make steady payments on a long-term basis. For mortgage lenders, seeing a history of auto loan payments is a great indication that a borrower can handle a larger home loan.
Tied to the first tip, being responsible and not over-spending with your cards improves your credit by maintaining the important gap between credit limit and amount borrowed. Not only does this improve your credit, it also helps you stay within your budget when the credit card bill arrives.
Example: If your dream car is an expensive full size SUV or a new pickup truck, you may want to consider starting out with a less expensive sedan or smaller SUV for the time being. This will make it easier to get an affordable payment a and allow you to improve your credit history. Then after you have that vehicle for two or three years you can move up to your dream vehicle. You will qualify for a better auto loan, have a lower interest rate and therefore a lower payment on that more expensive vehicle.
If you are in need of an affordable auto loan, call or text McGrath Credit today to learn more about our tremendous service.
Auto loans not only help people drive high-quality vehicles, they also help people build their credit, which can lead to home mortgages and loans.
If someone were asking you for $150,000 loan to buy a home, but had little or no history of making loan payments, you would be apprehensive. The borrower might be completely responsible and capable of making monthly mortgage payments, but you have no way knowing this because they have not shown it in the past. Everyone needs a reliable car, and using an affordable car loan is one of the best ways to drive one home. You’ll not only have a car you can be proud of, but you’ll help your credit, and that will pay off in the future!
McGrath Credit is Eastern Iowa’s leading Auto Finance Approval Center and specializes in auto loans for vehicle shoppers who have had challenges in the past. We have great relationships with many lenders which allows us to offer loans that many others cannot! No matter what your credit history, we will have a loan for you! McGrath Credit specializes in auto loans and can get you into a new vehicle today!
