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can, in some instances, increase their chances of qualifying for an auto loan by correcting the inaccuracies and having outdated negative entries removed from their credit file before starting the application process.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.
Borrowers with deficient credit sometimes often don’t understand that checking their credit reports before applying for an auto loan could save them money.
It’s a fact that consumers with damaged credit that are financing a vehicle with a subprime auto loan have a better chance of successfully paying it off if their car doesn’t break down.