Many assume that once they have bad credit, they are stuck in that category forever. Our team here at Good Fellow’s Auto Wholesalers is here to tell you that is not the case. The best way to improve your credit score if you are in this situation is by obtaining a bad credit car loan. If you are interested in finding out how this is possible, keep reading this guide.
What Is a Credit Score?
Most people have the same question and they ask what their credit score is made up of. There are many factors that influence and directly contribute to what your final score is. Factors consist of your payment history, the amount owed, length of history, new credit, and type of credit.
Your payment history consists of all your past credit payments (including ones made on time, late, missed, and defaults), the amount owed is a total figure of how much you owe (including outstanding balances on credit cards, students loans, mortgages, etc.), length of history is how long you’ve been a credit user, new credit is any line of credit you’ve recently opened in the past 6 months, and type of credit is determined by the credit you have.
How to Start Credit Repair?
As the title of this article reads, a bad credit car loan is an effective strategy for credit building so let’s determine why this is.
Making Payments On-Time
The most meaningful factor of a credit score is payment history. This means making your payments on time. If you have ever missed a payment date, you will have acquired a decline in your credit score. But the opposite is true, if you make your payments on time, you can see an increase in your credit score and this is exactly what lenders are looking for. One way to start making your payments on time is to build your payments history with a car loan.
Building Credit History
Begin building your credit history with a car loan. This is because lenders like to get a sense of what an applicant is like as a credit user and car loans are small payments made every month that can be attainable. Working with a trusted team such as Good Fellow’s Auto Wholesalers will help to provide you with an affordable car loan rate that will make making payments easier than you thought. Once your payments begin to be made on time, your reliable history will speak for itself.
How We Can Help
If you are ready to raise your credit score, it’s time you look into a bad credit auto loan. Our trusted used car dealerships in Toronto will help walk you through our easy approval process and we will help put you on the road to a better credit score. You can contact our team, Good Fellow’s Auto Wholesalers, at 1 (855) 581-9590 today. We look forward to working with you and making your credit score dreams become a reality.