Elkhart: 574-264-1001 
Goshen: 574-971-8484 
Contact Information

Do Car Payments Build Credit?


How Do You Finance A Car With No Credit And No Cosigner?

Consumers at Elkhart used car dealers or dealerships anywhere else typically want to know how a new or used vehicle will affect their credit. As you may know, most dealerships use credit to determine eligibility for an auto loan. With this being said, qualifying for an auto loan isnít the only time your credit will be involved in the process of financing a car. Ultimately, you will have to make payments on an auto loan, and these payments will determine how an auto loan affects your credit.

If you have bad credit, you may also be worried about qualifying for an auto loan and improving your credit. Fortunately, dealerships that offer buy here pay here near you, such as USA-1ís car dealership, provide a great solution for buyers with poor credit, using factors other than credit to decide loan eligibility. However, despite the fact that these dealers use factors other than credit, bad credit auto loans will still have an effect on your credit. To learn more about how auto loans affect credit, you can browse the list below.

1. Hard Inquiry

The first thing you should note when financing a car with USA-1ís Elkhart used car dealer or anywhere else is that there will typically be a hard inquiry on your credit when determining loan eligibility. This hard inquiry could temporarily lower your credit score by a few points; however, itís easy to recover once you begin making loan payments.

Because dealerships that offer buy here pay here near you use factors other than credit for deciding loan eligibility, you wonít have to worry about hard inquiries on your credit at these dealers.

2. Building Credit With Auto Loans

If you would like to improve your credit when financing a used car near you, loan payments should be made on time. Timely payments can help to increase your credit score over time. As mentioned above, even loans with bad credit dealers offering buy here pay here near you will help to improve your credit as long as you make payments on time.

3. Losing Credit With Auto Loans

Whether you finance a car with USA-1ís Elkhart used car dealer, or any other auto dealer, missing payments or making late payments will adversely affect your credit score. Not only will your credit score take some damage, but you may also run the risk of having your vehicle repossessed if you donít make payments on time.

4. Other Factors That Influence Credit

Aside from financing used cars near Elkhart, IN, or anywhere else, there are other factors that can influence your credit score. Every one of these factors will contribute to your present credit score when shopping for cars for sale near Elkhart, IN, or anywhere else. If you would like to see all of these factors, you can view the following list:

  • Payment History
  • Utilization Ratio
  • Length Of Credit History
  • New Credit
  • Types Of Credit

5. Ways To Improve Credit

As mentioned above, there are many factors that can influence a credit score. With this being said, there are ways that you can manage these factors to improve your credit score. The fastest way to improve credit is simply by being a responsible buyer. However, there are a few additional things that you can do to improve your credit, and these can be seen in the list below:

  • Timely Loan Payments
  • Keeping Credit Cards Open
  • Have A Healthy Mix Of Credit Types

To conclude, at USA-1ís buy here pay here near Elkhart, Indiana, we want to ensure that you are informed about how auto financing affects credit. Thus, we hope that the list above helps to better your understanding of how car payments can build credit. If you have any other questions or are interested in browsing some cars, donít hesitate to contact us at USA-1 or any car dealer near you.

Jet Black 
4cyl, 1.5L, 160.0hp
Model #: 
Stock #:
Internet Price:  
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 258137 a 2018 Chevrolet Malibu 4dr Sdn LT w/1LT FWD is ready to go with only 15,846 Miles, along with a Cajun Red Tintcoat Exterior and a Jet Black Fabric Interior.Some of the Malibu more desirable features include Accident...   Read More
Medium Stone 
6cyl, 3.5L, 290.0hp
Model #: 
Stock #:
Internet Price:  
In Need of Dealer Direct Financing in Elkhart ? Then Stock# A37567 a 2019 Ford Explorer Base 4WD is ready to go with only 22,350 Miles, along with a Agate Black Metallic Exterior and a Medium Stone Fabric Interior.Some of the Explorer more desirable features include * LOW MILES *, Voice Command...   Read More
View ArticlesSave ThisPrint ThisTell A Friend