Should I finance a used Toyota Corolla to help boost my credit score?

"My credit score is 640, and I want to increase it. To do this, I was thinking of buying a used Toyota Corolla for about $7,000.

I have $5,000 for a down payment, so I'd only need $2,000 for the loan.

Should I do this to help boost my credit score?"

Answer
“While this is a good idea in theory, it’s probably not the best move for you.
To increase your credit score, you don’t need to go thousands into debt. Instead, open a credit card, make one purchase a month on it, and pay it off. This is a much more effective way to boost your credit.
If you have $5,000 saved up, and you need a car, look for a vehicle that’s $2,500 to $3,000. You’ll have a set of wheels and even some money left in the bank.”
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Eric Schad
Answered on Jun 07, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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