Should I get a cheap car loan to help boost my 700 credit score?

"My credit score is around 700, but the lack of installment loans is hurting it. I want to get a car loan to boost my credit score. Is getting a cheap car loan a good idea?"

“If you’re talking about a very cheap car loan, remember that many lenders won’t touch a car that’s over 10 years old. In that case, you may have problems finding a car that lenders are willing to finance.
My recommendation is to go to your credit union. Typically, they’ll offer somewhat cheap personal loans or savings loans that fall under the installment loan umbrella. These can often be as little as $500, so you won’t break the bank by getting one. That’s probably your best option.”
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.

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