How To Re-Build Your Credit with a Car Loan

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There are two reasons why you need to build credit: 1) you have no credit at all
or 2) you need to rebuild credit after filing for bankruptcy, as one example

A car loan can be a great way to build up your credit rating because it is an installment loan as opposed to a credit card which is a line of credit. The best part about a car loan is you can budget for exactly what you’re going to pay each month, or bi-weekly – depending on your terms.

Building Credit with a Car Loan in Calgary

Important things to consider when wanting to apply for auto financing are obvious:
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  1. Budget for Car Payment – how much can you afford to spend each month on a car payment? Remember, not making your payments will negatively affect your credit.
  2. Car Payment Plan – which type of auto loan program suits you best? Monthly or Bi-weekly terms, taking into consideration your pay day and other details.
  3. Auto Emergency Fund – it’s worth setting aside a little extra, even after you get your car loan set up. Remember, windshields get hit with rocks, tires are capable of being punctured and accidents happen.
  4. Be Great, Not Late – we suggest automatic payments are set up for your car loan so there is less of a chance you’ll miss a payment.

Being late on a car payment or skipping payments all together are two things you do not want to do if you’re trying to build credit. The sooner you pay it off, the better. Once your car is paid off you can look at purchasing something else, because you’ve shown credit rating companies that you are more than responsible enough, and capable of managing money.

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Our Credit Specialists have a decade’s experience working with car payments in Calgary that fit budgets and requirements.  We consider bad credit car loans a work in progress, because we know this doesn’t make you a bad person. Finding auto credit and financing is the first step to finding the car of your dreams and we’d love to make that happen for you.

Let’s work together to rebuild your credit. Apply for auto financing in Calgary.

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