What Is Car Depreciation?

How a Car Loan Can Affect your Credit Score

When you first purchase your new or used vehicle, odds are your thoughts are on its cool interior, easy handling and great sound system, and not on the auto loan you just signed and how it will affect your credit score. You’re not alone in this, but it’s still important to be careful and aware or how a few small mistakes can have a negative impact on your credit score.

Happy couple filling out the paperwork to buy a used car with a salesmanYour loan will affect both your credit report and your credit score. Learn the difference between the two here. If your credit reports show that you pay all of your accounts on time every month, this will result in a higher credit score. Likewise, if you miss payments or pay late, it can lower your score quickly.

While it would be great if everyone could make their payments on time every month, we understand that we don’t live in a perfect world and sometimes things happen that result in missed or late payments, causing your credit score to take a hit.

If you’re no longer able to afford your payments, try not to let them pile up too long. A good idea is to consider refinancing your loan or talking to your lender. Doing this can help you avoid defaulting on your loan, which is devastating for your credit score. Refinancing is a great way to save yourself from a lot of financial stress in the long run.

[Read more: Does applying for an auto loan hurt your credit score?]

Get help with your Car Loan at Broadway Auto Credit

If you’re sick of shopping around for a car loan, we’re here to help. Here at Broadway Auto Credit, we’ll help you get the car loan that’s right for you, regardless of whether you have bad credit or no credit. We’ll work with you to ensure that you find the car and loan that suits you.

Simply give us a call or contact us online and we’ll be happy to meet with you to discuss your options. That way, you can get an idea of what a loan with us will look like before making a final decision.