Go for Car Financing to Increase the Credit Score

May 19, 2010 - PRLog -- A bad credit situation can occur to anyone and with the current economic situation, it certainly is happening to every individual. A bad credit score can seriously hamper one’s chances of getting approved for or to get a decent interest rate on car financing (http://www.crestcarloan.com), house financing etc. With the availability of bad credit auto loans, one can get a vehicle. But the interest rate charged is high and default on even a single payment can omit any chance of applying for a mortgage in the future.

In these circumstances, car financing (http://www.crestcarloan.com) can be used to enhance the credit score, but the features of the loan should be tweaked a bit. Getting the finances can help one to re-establish the credit and one should give priority to the credit score in these circumstances instead of the car.

With a bad or no credit score, one can be sure that the interest rate will be as high as 15-20%. Therefore, it is best to go for the cheapest (which is also durable) car as financing a higher amount would lead to a high monthly payment which can result in defaults. Paying the small amount for at least one year increases the credit score and the borrower can trade off the car (as down payment) and get a new loan for a better car at a much affordable interest rate.

Moreover, if one feels like sticking to the old car, then he/she can refinance the loan to get a better rate. These measures would ensure that the credit score is increased which can help in getting a mortgage approval easily.

# # #

Crest Car Loan is your best source for car loans or bad credit car loans online. More information about Crest Car Loan can be found at http://www.crestcarloan.com.