How can a car loan help build credit?
November 01 2022
Not many people know that financing a car can actually improve your credit score and the trust you build with lenders. Credit scores in Canada are calculated based on five components:
- Credit Mix (10%),
- New Credit (10%),
- Length of Credit History (15%),
- Amounts Owed (30%),
- Payment History (35%).
A number then gets calculated between 300 and 900, which is your overall credit score. It’s important to remember that these five components are calculated differently (although they’re calculated together to determine your overall score). For example, your payment history accounts for 35% of your credit score. Suppose you’re successful at paying back loans. Your payment history will have a high percentage, which in return will have a positive effect on your overall credit score.
In addition, paying off debts with high interest will also positively affect your score. This is where getting a car loan helps you to improve your credit score. A lender may give you higher interest rates on your car loan due to bad credit or no credit history. So, paying the loan off always in a timely fashion will improve your score and benefit you in the long term.
Apply for Financing a Car Help Build Credit?
How iRide Auto Financing Can Help You
We have the most professional financial advisors with the best financing tools available to help you get a loan to buy the car of your dreams. Whether you have a bad credit score or you don’t have any credit, we’ll ensure that you get the best financing to suit your lifestyle and budget.
One of our specialised team members will meet with you to determine your budget and design the perfect strategy to help you get the best deal and rates possible. Regardless of your credit score, you’ll be able to get a second and a third chance to apply for a car loan at iRide Auto Financing.
Improve Your Credit Score With a Loan From iRide Auto Financing
We work with regulated financing institutions and lending partners. Our team will find the best deal that works for your unique situation. We’ll ensure you get the perfect car loan with the most affordable interest rates.
You’ll improve your score almost instantly when you make your repayments on time. We’ll work with you one-to-one to ensure you can afford your repayments.
Make Your Move!
Contact us now and arrange a meeting with one of our qualified, professional, and friendly financial advisors who’ll help you get the best financing deal on your car. Get the vehicle that you and your family deserve. Make your move!
