How much does a small used auto loan impact my credit?

I am about to buy a 2003 Honda Civic from my uncle for approximately $10,000. I had intentions of putting down 5,000 or 6,500 dollars (depending on what I sell my current car for) and take out a small auto loan for the remaing 3,500 or 5,000 for about 36 months.

The rates I am finding are not as good as I would have hoped, through no fault of my own. I am 24 and haven't done anything that would have given me bad credit. I pay back all my bills and whatnot.

Am I better off just buying the car outright (I can afford it) or taking out a loan for the sake of taking out a loan. I've heard a few times that a small loan really helps your credit.

How much does a small used auto loan impact my credit?

Auto finance is what I do for a living and auto loans take 6-months of payments made as agreed to be rated.

Your credit will be helped the best after 12-payments made as agreed. This is the first thing lenders look for when they are looking at a application for credit.

I would agree with PJ except for the amount of payments you should make. I would make at least 12, and make sure whatever lender you use that they report to all three credit bureaus or you are wasting your time.

How much does a small used auto loan impact my credit?

I think these are some useful sites: http://autoloanguide.automobil... Report It

How much does a small used auto loan impact my credit?

Put the money to pay off the loan in a savings account, get the loan let it cycle about 6 months then pay the balance off. This gives you a payment history although you will pay a bit of interest it will be a good trade line.

Also initially your score will take a 5-7 point hit for the credit report when getting the loan, rebounds rapidly!

How much does a small used auto loan impact my credit?

There are many auto loan options available today. Today, stiff competition among auto loan financing companies%26lt;!--has made it possible to get a car loan or an auto loan at favorable terms.

http://badcredits.awardspace.com/autoloa...

However, before you sign the paper for financing your favorite set of wheels, do your homework to ensure that you get the best car--%26gt;finance option. You can apply for online car loans on the Internet, or get it from your car dealer.