As a car buyer, you're likely aware of the importance of your credit score. A high credit score can help you get a lower interest rate on an auto loan, which in turn can save you money over the life of your loan. But what many people don't know is that there are things you can do to improve your credit score. One way to make an impact is by taking out an auto loan. Here at Glockner Honda, we offer competitive rates on auto loans and we work with a variety of lenders to find the best deal for our customers. So, if you're looking to improve your credit score, come talk to us about getting a car loan. We'll help you get into the vehicle you want while also helping improve your credit.

What Is A Credit Score?

A credit score is a three-digit number that lenders use to help them decide how risky it would be to lend money to you. The higher your credit score, the lower the risk for the lender and the more likely you are to get approved for a loan-and to get a lower interest rate if you do. Your "score" is determined by the information that is provided in your credit report. That's why it's important to check your credit report regularly. You can obtain free reports with a variety of free applications or request a copy online.

How Do Car Loans Build Credit? 

A car loan is one of the many ways you can build credit. By making timely payments on your car loan, you can improve your credit score and become eligible for better interest rates in the future. When it comes time to take out a loan to finance a car, a lender will provide your information to the three major credit bureaus (Equifax, Experian, and TransUnion). Keep in mind that if you make your payments on time, your credit will get better. However, do keep in mind that you need to have a long-term perspective when it comes to improving your credit.  Don't expect an overnight rise in your score. Eventually, you will be rewarded with your consistency.

Factors That Impact Your Credit

Whether you're getting ready to finance a car or any other purchase, it's imperative to know how your credit is impacted. Many different factors can influence an individual's credit. Some of these factors are within the individual's control, while others may be out of their control. Some of the most common factors that can influence credit include payment history, credit utilization, credit mix, and length of credit history. Keep in mind how much credit you're using and the balance owed. Always avoid paying the minimum balance on any other loans you may have, such as credit cards.  

How Can I Improve My Credit?

Ultimately, you want to get the best rate possible when you're applying for a loan of any kind. Good credit comes down to making responsible choices and staying on top of your spending. Keep your credit card balances low. Don't skip payments on anything, whether it's a car or mortgage payment. Make it a point to check your credit report at least every quarter to check for discrepancies. Here are some other tips.

  • Look for credit cards that have 0 APR for at least 12 months to avoid interest fees.
  • Discuss your previous experience with financing a car with our finance team.
  • Shop for a vehicle that is within your budget parameters. 

Auto Loans Help Build Responsible Credit Usage

Making a steady payment for anywhere between 60-84 months is an excellent way to build confidence, build credit, and show lenders you're responsible. Even if you haven't financed a vehicle for a long while, auto loans are excellent tools to build financial stability. Knowing that you need to make a payment every month holds you more accountable for your overall budget.

Glockner Honda Can Help You Finance Your Next Vehicle!

Glockner Honda would be more than happy to help you finance your next vehicle. We have a wide variety of vehicles for you to choose from and our team is here to walk you through the entire process. Give us a call today or come visit us in person. We can't wait to work with you to achieve the financing that's right for you!


Hours

  • Monday 9:00am - 6:00pm
  • Tuesday 9:00am - 6:00pm
  • Wednesday 9:00am - 6:00pm
  • Thursday 9:00am - 6:00pm
  • Friday 9:00am - 6:00pm
  • Saturday 9:00am - 5:00pm
  • Sunday Closed

Contact

Glockner Honda

2867 US Route 23
Directions Portsmouth, OH 45662

  • Sales: (740) 679-6443
  • Service: (740) 351-7008
  • Parts: (740) 351-7008