Does Buying a Car Improve Credit?

Does buying a car improve credit in the U.S.? Auto loan payments are usually reported to the credit bureaus—on-time payments can help your payment history; late or missed payments can hurt. Here's does buying a car improve credit.

TL;DR Buying a car (with a loan) can improve credit if you pay on time—lenders report payments. Late or missed payments hurt. Don't buy just to build credit; buy when you need a car and can afford it. Use autopremo.com payment calculator and affordability. Use autopremo.com.

Auto Loan and Credit Reporting

Lenders report auto loan payments to the bureaus. On-time payments help payment history; late or missed payments hurt. Use autopremo.com payment calculator to see payment so you can pay on time. Get your numbers at autopremo.com.

Don't Buy Just for Credit

Don't take a car loan only to build credit—buy when you need a car and the payment fits your budget. Use autopremo.com affordability. See affordability at autopremo.com.

Bottom Line

Buying a car (with a loan) can improve credit if you pay on time. Use autopremo.com payment calculator and affordability so you buy when it makes sense.