What is the Best Way to Restore Your Credit?

December 2nd, 2014 by
Restoring Credit: Best Practices

Credit is challenging for those who have a low credit score. Yet there are some best practices that can help you achieve your goal and get the car that you need. Consider the difference between credit cards and a Merchants Auto bad credit car loan in New Hampshire.

Credit Card
Many people wrongly assume that a credit card is the same as a car loan, in terms of rebuilding credit. Even if the credit card reports your activity to a credit reporting agency, the agency will not view the credit card as particularly important. That is, unless you charge a lot and repay it all every month. Without that kind of activity, a credit card doesn’t make much positive impact on your credit history. The reason is that the payment plan is so flexible that you could be paying $35 a month on $5,000 worth of debt. On the other hand, fixed monthly payments on a Merchants Auto bad credit car loan in New Hampshire can make a positive impact on your credit score.

Bad Credit Car Loan
When you get a bad credit or no credit car loan in Manchester, your payment history will be reported to the credit reporting agencies. This can have a positive effect on your credit score fairly quickly. The reason that it’s different from a credit card is the required monthly payment. Credit reporting agencies see that you are paying faithfully and you are paying a set amount. This raises their level of trust in your ability to borrow and repay a loan. This, in turn, begins to raise your credit score.

When you are ready for a no credit car loan in Manchester, check out Merchants Auto. Let us help you turn a credit challenge into a credit opportunity.

Posted in News