Services
PriceProtect™
DriveShield™
GarageGuard™
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Home Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Recent Studies
Comprehensive Data Reports
Reviews
About
FAQ
MenuIcon
BACK

If I want to build credit, how long should I keep a car loan?

"I have about a 60% down payment for a car, but I should have the cash to pay off the rest of the loan within a year. How long should I keep the car loan?"

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“If you have money to pay off the loan but want to build your credit, holding it for 12 to 24 months is ideal. By doing so, you won’t accrue much interest but you will still build credit.
That doesn’t mean you have to get a 12- or 24-month loan, however. You can bring your monthly payments down with a 36- or 48-month loan.
The trade-off is that you might pay a tiny bit more in interest, but it’s entirely up to you and your preferences.”
Car Loans
View full answer 
Jerry user testimonial avatar
rating primary
“My experience with Jerry has been absolutely incredible. It took my car insurance from about $400/month to about $80. The entire experience is seamless.” - Gregory R.
Lower my car insurance too
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Find insurance savings

You Might Also Be Interested

card cover

A Guide On Getting a Car Loan with Bad Credit

This is a guide on how to get a car loan with bad credit. Although you might find yourself with unfavorable loan terms, chances are you can still get a loan with bad credit. Here's how.
avatar
Jacoba Bood
card cover

How to Calculate a Down Payment on a Car

Calculate how much money you will need for a down payment on a car before you head to the dealership to buy.
avatar
Bonnie Stinson
card cover

The Pros and Cons of Financing a Car

Getting a car loan can help you spread out your expenses and build your credit, but it also means you’ll pay more in the long run due to interest.
avatar
Mary Alice Morris

Read Advice From Car Experts At Jerry

card cover

A Guide to Breaking a Lease In Michigan

You can legally break your lease in Michigan, but unless it's for a protected reason, you may have to pay some pretty steep fines.
avatar
Claire Beaney
card cover

2015 Hyundai Elantra MPG

The 2015 Hyundai Elantra gets 31 miles to the gallon in combined city and highway driving. Find out how it compares to other compact sedans here.
avatar
Jason Tushinski
card cover

Washington Gas Tax

At $0.49 per gallon, Washington State has the third highest gas tax rate in the nation—and it’s set to almost double in 2023.
avatar
Amber Reed

What Others Are Asking

Where are AMG Mercedes built?
Some of the coolest cars I’ve ever seen in my life have all been AMG variants of Mercedes models. Because of the tech behind them, I wasn’t sure if they’re produced in regular Mercedes factories or somewhere else. Where are AMG Mercedes vehicles manufactured?
avatar
Eric Schad
How long will a DUI stay on my driving record in Washington?
I messed up big time and got myself a DUI last week driving outside of Seattle. I was thinking about searching for a new job soon, but now I’m nervous that this will affect my employment prospects. How long will I have a DUI on my record in Washington?
avatar
Macy Fouse
How much does it cost to fix a tire pressure sensor?
One of the tire sensors in my Lexus isn’t working. I’ve come to depend on the low pressure light to alert me of problems with my tires. How much does it cost to fix a tire pressure sensor?
avatar
Rachel Rigolino
Browse All Questions

Browse More Content

Car Repair Resources

Insurance for Your Car

Insurance in Your State

    Insurance In Your City

    Easiest way to compare and buy car insurance

    √
    No long forms
    √
    No spam or unwanted phone calls
    √
    Quotes from top insurance companies
    Find insurance savings
    Car Insurance by Make
    Audi
    BMW
    Dodge
    Ford
    GMC
    Honda
    Hyundai
    Jeep
    Kia
    Lexus
    Mercedes-Benz
    Mitsubishi
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Model
    Chevrolet Silverado
    Chevrolet Malibu
    Ford Escape
    GMC Sierra
    Honda Accord
    Honda Civic
    Hyundai Tucson
    Jeep Cherokee
    Jeep Wrangler
    Kia Forte
    Mazda 3
    Nissan Altima
    Subaru Outback
    Subaru Crosstrek
    Toyota Camry
    Toyota Corolla
    Toyota Tacoma
    Toyota Highlander
    Toyota Rav4
    Volkswagen Jetta
    View all
    Car Insurance by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Insurance by City
    Austin, TX
    Boston, MA
    Charlotte, NC
    Chicago, IL
    Columbus, OH
    Dallas, TX
    Denver, CO
    Houston, TX
    Indianapolis, IN
    Jacksonville, FL
    Las Vegas, NV
    Los Angeles, CA
    Nashville, TN
    New York, NY
    Philadelphia, PA
    Phoenix, AZ
    Portland, OR
    San Antonio, TX
    San Francisco, CA
    Seattle, WA
    View all
    Car Loan by Make
    Audi
    BMW
    Chevrolet
    Ford
    GMC
    Honda
    Hyundai
    Kia
    Lexus
    Nissan
    Mercedes-Benz
    Subaru
    Tesla
    Toyota
    View all
    Car Insurance by Company
    AAA
    Allstate
    Aspire Advantage
    Assurance America
    Bristol West
    Commonwealth
    Dairyland
    Encompass
    Infinity
    Kemper
    Mapfre
    Mercury
    National General
    Nationwide
    Plymouth Rock
    Progressive
    Safeco
    State Auto
    Travelers
    Car Loan by State
    AL
    AZ
    AR
    CA
    CO
    CT
    DE
    FL
    GA
    ID
    IL
    IN
    IA
    KS
    KY
    LA
    ME
    MD
    MA
    MI
    MN
    MS
    MO
    MT
    NE
    NV
    NH
    NJ
    NM
    NY
    NC
    ND
    OH
    OK
    OR
    PA
    RI
    SC
    SD
    TN
    TX
    UT
    VT
    VA
    WA
    WV
    WI
    WY
    Car Repair by Service
    AC Compressor Replacement Cost
    Battery Replacement Cost
    Fuel Injector Replacement Cost
    Fuel Pump Replacement Cost
    Ignition Coil Replacement Cost
    Oil Change Cost
    Oil Pan Replacement Cost
    Power Steering Fluid Service Cost
    Rotate Tires Cost
    Spark Plugs Replacement Cost
    Timing Belt Replacement Cost
    Valve Cover Gasket Replacement Cost
    Water Pump Replacement Cost
    Wheel Bearings Replacement Cost
    View all