Auto loans on your credit report
If you finance a vehicle with Finn's Discount Auto the loan will affect your credit report and your credit score. Because auto loans are usually larger amounts of money than regular credit card purchases, they tend to have an oversized impact on your credit.
When you first look at your credit reports, you may feel overwhelmed by the data. To see your car financing, turn to the page on reports provided by each of the three major credit bureaus — Experian, Equifax and TransUnion — that lists your car loan account and look at these two categories:
Type of accounts: An auto loan is typically reported as an installment account. Other types of installment accounts include mortgage loans and student loans. Those are payments of the same amount, made for a set number of payments. Because a portion of your credit score is derived from “credit mix,” getting a car loan may help your credit profile if you don’t already have an installment loan.
Current status: If you’re always on time with your car payments, your credit report will note that your car loan is “current” or “paid as agreed.” Because payment history has the biggest influence on scores, staying current on your payments could benefit your credit score significantly. Should you fall 30 or more days behind, you risk having your car repossessed by your lender and ruining your credit.
If you make all your auto loan payments on time and your credit reports show that over time, great for you! Your credit score will improve over time.