Consumer Car Buying Advice Blog

In addition to reestablishing your auto credit, a high risk car loan can end up costing you less in other automotive-related expenses. Here is just one way that it can help.

Reestablish your car credit

Here at Auto Credit Express, we’re constantly reminding customers that when they take out a bad credit car loan, they begin the process of rebuilding their car credit. We often forget, however, that there are other things that will improve as your credit score increases.

Car insurance and your credit score

While there are many things that are obviously tied to your FICO score – credit card rates and even the ability to get a credit card are the first things that come to mind, there are other areas of your auto ownership experience that are also affected by your credit score. One aspect of car ownership that can be affected by a poor credit score is the cost of automobile insurance.

Many car insurance companies will run a credit bureau on you when you apply for insurance. If you have a low credit score, they may charge you more for your car insurance. The reasoning behind this is that customers with lower credit scores are more likely to miss a monthly insurance payment. Since a missed payment involves either collection proceedings or discontinuing the policy – both situations that require additional expenses on the part of the insurer – customers with lower credit scores are charged more to offset these expenses.

As your credit score increases, the insurance company will, on a regular basis, reevaluate your policy and, in many cases, actually lower your insurance premium.

How Auto Credit Express can help you save time and money

Here at Auto Credit Express, we specialize in helping customers with bad credit get a car loan and begin the process of reestablishing their car credit. Our web site, www.autocreditexpress.com, will walk you through the process of applying for a loan by using our secure car loan application. With pages devoted to research as well as FAQ’s, we will try and answer all your questions. If you can’t find the answer on one of these pages, we have customer service representatives that are more than happy to assist you during normal business hours (8:30am – 5:30pm Eastern Standard Time).

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