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Can Financing a Car Build Credit?
That means, for many Americans buying a vehicle, auto loans are a necessity.
How Car Payments Impact Your Credit Score
If youre wondering, Does financing a car build credit?
Missed or late payments, on the other hand, can significantly hurt your credit.
Just one missed payment can remain on your report for up to seven years.
So,do car payments build credit?Absolutely!
Just verify to pay on time every month.
An auto loan is considered installment credit since it has fixed monthly payments.
This is the amount of revolving credit youre using compared to how much is available to you.
When considering, Does financing a car build credit?
you dont have to worry about it affecting your credit utilization.
Will Financing a Car Hurt Your Credit?
Missed payments can also lead to repossession, meaning the lender takes the car from you.
This could lead to missed payments on your car or other bills, which could ultimately hurt your credit.
It can, depending on how you manage the loan.
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