Biggest Myth About Rebuilding Credit with a Vehicle Loan

Jun 1, 2021

I’ll end up paying for my car three times at this interest rate!

It’s true – if you had to pay it over 4 or 5 years…

But imagine being able to build your credit and not have to pay all that money in interest charges!

A lot of people hold off on getting a vehicle loan when they have poor credit, because they want to ‘save money’ and buy a car for under $5,000 cash.

But what’s really happening?

They’re putting off rebuilding their credit and spending more money over the long term in higher interest rates elsewhere (like their line of credit or even their credit card!)

Meanwhile, they could have interest rates drop within 6-12 months, and be headed to thousands of dollars of savings over the coming years.

How is that done?

Let’s use you as an example. If life hit you hard, and you’re looking to boost your credit, you will most likely need to pay higher interest.

But here’s the important part: If you show the lender that you are consistent in making payments, after 12 months, you will have options!

you could potentially refinance yourself into a lower interest rate, or
trade in the car that helped you rebuild your credit and get a different one at the lower interest rate.
So, in short, when you’re working to increase that credit score and pay less in interest, you can actually get their faster with an installment loan on a vehicle.

If you’re at the point where you’re still wondering if it’s worth it – chances are it is, so get in contact with me .

Now, before you start looking at getting into an installment loan, it’s vital that you choose the right vehicle, so if you’re not ready to talk to a consultant yet, be sure to check out this article.

Till next time!