Should I get a car loan to boost my 400-something credit score?

"I currently have a credit score in the mid-400s. I was thinking about boosting my credit with a car loan. Is this a good idea?"

Answer
“Because your credit score is so low, you probably won’t get approved for a car loan.
And even if you do get approved, your interest rate is going to be astronomical. As a result, you should look into other ways to boost your credit.
Start by paying off any late or derogatory marks on your credit score. Next, get a credit card and put one purchase on it a month, such as a utility bill.
Don’t take out way more money and go further in debt with a car loan when you don’t have to.”
avatar
Eric Schad
Answered on Jul 23, 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.
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.