At Auto Credit Express, we have heard this question before: “Why should I get a bad credit car loan? I can pay cash for a car and get a credit card to rebuild my credit.” Here is why that probably won’t work…

Revolving versus Installment credit

A charge card is a type of revolving credit. If you don’t pay the entire balance every month, the credit card company allows you carry over (revolve) the balance to the next month.

An auto loan is a type of installment credit. With installment credit, you sign a contract to pay back the amount borrowed, plus interest, for a set amount per month for a fixed number of months (such as $300 per month for 48 months).

What the credit bureaus and lenders look at

In determining your credit score, the credit bureaus include both types of credit. But while automotive lenders also look at your entire credit they put special emphasis on your installment car credit history. In other words, while a good payment history with a credit card will help your credit score, it is not the strongest type of credit to have if you want to buy a car.

Why Auto Credit Express can help

Here at Auto Credit Express, we have helped thousands of people with bad credit reestablish themselves. We do this by educating our customers about bad credit auto financing. Our web site contains calculators as well as a resource center to help you understand the subprime car buying process. We also have a toll free number listed on our site that will put you in touch with special finance professionals that can answer any additional questions you might have. Our credit application allows you to apply for a loan in the security of your home. So if you are serious about getting your credit back on track, go to www.autocreditexpress.com. We want you back “on the road” to good credit!