Credit repair can feel like an uphill battle when you’re not sure where to start. Contrary to popular belief, a good place to start is actually with an auto loan.
With the number one cause of divorces today being financial reasons, it’s no surprise that this is also the greatest cause of stress during and after a divorce too.
But a car loan is only installment credit and if these consumers are seriously interest in credit repair, they’ll also need to reestablish at least one line of revolving credit. The easiest way to do this is to get approved for some type of credit card.
Car buyers with damaged credit can, in some instances, increase their chances of qualifying for an auto loan by correcting the inaccuracies and having outdated negative entries removed from their credit file before starting the application process.
From our experience the results pretty much speak for themselves when consumers with damaged credit allow some time before applying for a car loan to, among other things, check their credit reports and correct any mistakes.
Consumers with questionable credit should know that there is something in addition to an auto loan that could improve their FICO scores.