"Should I buy a truck with cash or finance it to build my credit? "

"My credit score is 720 and I have a good-paying job with almost $50,000 in savings. I am planning on buying a $30,000 truck and I am comfortable paying cash for it.

Since I qualify for a low interest rate, though, should I get a loan instead to build up my credit?

"

Answer
“You shouldn’t have to pay to build your credit. This can be done for free with credit cards.
However, if you are set on getting a car loan solely to build your credit, you can get the loan and then pay most of it off when you get your first bill. This should leave you with a very small balance that should incur very little interest, thus giving you the results you are looking for without costing you thousands of dollars.
Before you decide to do this, though, make sure to speak with your lender to ensure that this plan is feasible and you won’t be saddled with any negative consequences.
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Johnny Puckett
Answered on May 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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