A Weight Off Your Shoulders: Rebuild Your Credit With a New Car

May 18th, 2022 by

Does bad credit financially pressure you?

Don’t worry. Many possible circumstances could lead you to a bad credit score, and it happens to anyone, but the important thing is how to take off that heavy load on your shoulders.

Thankfully, a successfully managed credit car loan may be the turning point in your bad credit history that proves that you can handle a long-term financial responsibility to future lenders.

A Good Way to Rebuild Your Credit

A credit car loan is an effective strategy for rebuilding bad credit. Consistent payments made on time account for 35% of your credit score.

So if you successfully pay your car loan bills every billing cycle without fail, you will start seeing a drastic increase in your credit score over the loan’s lifespan.

In addition, you can take advantage of other benefits. Let’s take a look at some of them:

Being able to refinance at a lower rate when your score improves

Getting a loan while having a bad score is difficult and even getting approved means that it will most likely come with a higher interest rate strapped to the back of it.

However, if you have been diligent about repaying your bad credit car loan, your credit score can see a significant increase, after which you may be able to refinance at a much lower rate and save a lot more in return.

Help increase your chances of securing other future loans

A higher credit score will make it much easier to get approved for a car loan in the future, but it can also open up the doors to other loans.

Mortgages, personal loans, and credit cards will be much easier to acquire with a higher credit score, which can be possible if you are diligent with your car loan payments.

A Weight Off Your Shoulders + A New Set Of Wheels

Car loans are incredibly useful in taking the financial burden off your shoulders.

If you live in the Lethbridge area and are looking for a quick way to rebuild your credit score and get a new set of wheels, visit House of Cars!

Everyone’s financial situation is different, which is why we accept both good and bad credit for our clients looking to buy a used car! We also make it our priority to cater the loan to your needs.

That way, you can drive out of the lot with a new set of wheels and a financial weight off your shoulders.

Click here to learn more about our financing options.

Posted in Finance