Are you worried about your credit score? Maintaining a good credit score is important for you because it comes with lots of added benefits. As a renowned auto financing partner with the best options in car loan rates in British Columbia, we are here to guide you on how to build credit with a car loan so that you can boost your credit score with ease!
How Do Car Loans Help Your Credit?
A car loan helps you with building credit by making timely payments and adding to your credit history. 35% of your overall credit score depends on your payment history. So, if you have a bad credit score and you are trying to improve it, then car loans are an effective way to build your credit. The timely payments when accumulated become a large part of your credit calculation score and greatly improve your credit.
Your credit history is an important determining factor that can positively affect your credit. By opening a new account, you will be able to add to the length of your credit history. It’ll increase the weight of your credit by 15%, so the longer you keep the account active, the better it will be.
