"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 provided by
avatar
Johnny Puckett
Answered on May 25, 2021
“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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies