How Buying a Car Can Help Repair or Establish your Credit Score

Buying Houston used cars are a great way to fix and build a positive credit history. All you have to make sure is that your debt repayments are made on time.

At Liquidator Auto Sales, you have the option to buy here pay here no credit check. This option is one of the fastest ways to buy a car even if you have poor or no credit. In case you don’t have any other financing options,  you can still get a car. And if you make timely payments, you build a good credit score over time.

 

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How Does a Car Loan Affect Your Credit Score?Houston Used Cars

When you get a car loan, the financing organization will inquire about your credit history. The more inquiries you have, the more points you lose off your credit score.

However, making timely payments on your loan has a positive impact on your profile and this boosts your credit score. In time, it helps you recover the few points you lose due to the inquiries.


“Making timely payments on your loan boosts your credit score.”


On the other hand, failing to make payments on time is bad for your credit score. If you have a history of missed payments, your credit score will be low. This makes it difficult to get financing from banks and other traditional channels.

Terminology to Know When Considering a Car Loan

Houston Used CarsWith so much data, it is easy to get overwhelmed by the technical terms used in your credit report.

Here’s a low-down on some of the most important terminology you’ll come across in your credit report.

There are two broad categories you need to know about:

  1. the type of account
  2. the current status of your payments

Type of Account

Generally, auto loans fall under installment accounts. You can group them with your traditional mortgage and student loans. Under this category, you have to make regular payments for a fixed amount for a fixed period.

Making timely payments on your installment account is a good way to establish a credit profile. And thus getting a car loan can help you both repair and establish your credit for future transactions.

Current StatusHouston Used Cars

If you’ve ever taken any loan, you are aware of the importance of keeping up-to-date on your payments. Since payment history plays a crucial role in your credit score, it is advisable to make all your loan repayments on time.

Staying current on your car loan can improve your credit score and also have a positive influence on your credit profile. Failure to meet your repayment obligations within a month could potentially harm your credit.

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“Staying current on your car loan has a positive influence on your credit profile.”


Remember, if you’re making timely payments and your credit report does not reflect this, you need to file a complaint. Make sure to check your credit profile on an annual basis to ensure all transactions are accurately reported.  You can get a free credit report from Nerd Wallet.

Tips on Houston Used Car Loan Shopping

Houston Used CarsEvery time you apply for a car loan, the financing organization will run a credit check on your profile. All these credit inquiries may cost you a few points on your overall credit score.

For example, FICO score has a 30-day window whereas the Vantage score has a 14-day window. It is thus essential to keep your search for a used car loan within a certain period of time, usually 14 days. This generally helps the multiple hard inquiries made in a specific window count as one for your credit score calculations.


“Getting a car loan can establish your credit for the future.”


In fact, don’t hesitate to ask your car dealer for a buy here pay here no credit check option. Keep your car loan search brief and inquiries to a minimum so that it doesn’t impact your credit score unnecessarily.

Buy Houston Used Cars and Improve Your Credit Score with Liquidator Auto Sales

Based in Houston, Liquidators Auto Sales has 20 years of experience selling Houston used cars to people just like you. Our buy here pay here no credit check helps you finance the car you want without any credit check. Get easy finance options and ride out with your dream car the same day.

Buy Houston used cars with our hassle-free car loans to establish and repair your credit score. To learn more about our in-house financing facilities, call 713-681-1200 or contact us today to speak to our experts.

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How Buying a Car Can Help Repair or Establish your Credit Score | Liquidator Auto Sales – Houston, TX