Can You Build Credit by Buying a Used Car?
As an Indianapolis buy here pay here dealership for roughly a quarter of a century, we’ve seen many drivers in tough credit situations. While those with bad credit or no credit history may feel like they’re being punished by other lenders, our experience here at Joe’s has led us to understand that most of the time, it isn’t the buyers fault. Difficult times hit many people, and our goal is to help drivers get back on their feet with the used vehicle they need. But can you really build credit buying a used car?
The simple answer is, yes! Even when you finance through us here at Joe’s Auto Sales, we can help you get back on the right track by reporting your payments to credit bureaus.
For those needing a vehicle with affordable payments, buying used can help you retain the money you have in the bank while developing your credit history.
Tips for Improving Your Credit With a Used Car
Simply financing a vehicle isn’t enough to get your credit score heading in the right direction. If you have no credit or bad credit, here are a few tips to keep in mind to make that used car purchase pay off:
- Only pick out a used vehicle you can afford. While our used car inventory at Joe’s Auto Sales is fairly priced, we do have models in various price brackets. The point is, even though it’s pre-owned, only select a vehicle you know you can afford so that you aren’t causing more damage to your finances down the road.
- Always make your payments on time. Always. The truth is, it takes only one missed or late payment to negatively affect your credit, so making the payments on time is a must.
- Don’t neglect your other bills. At Joe’s, we want you to be able to drive home in the car you deserve, but we also want you to be in a healthy financial situation. Consider your other bills and never purchase a new car with the idea that you’ll pay less or stop paying on current financial responsibilities that could harm your credit.
So yes, you can build credit buying a used car, but only if done properly and responsibly. Like we say, everybody rides at Joe’s, and when you ride at Joe’s, you can take one more step toward improving your life.