How To Build Your Credit To Get a Car

Credit approval is an important factor when it comes to larger purchases, so it makes sense that you’d want to learn how to build your credit to get a car.

We at Sheridan Nissan have written this article so that drivers throughout New Castle, Wilmington, and Newark, Delaware, can start building up to a sufficient credit score in order to qualify for one of our loans or leases.

Read on to learn more and contact our finance team today if you have any questions about our approval process!

Pay Everything on Time

If you already use a credit card or have student loans, you will want to keep making those payments on time. Each month, as you contribute toward those payments, you are helping to boost your credibility with this loaned money.

Contributing more than the minimum requirement also shows your dedication and responsibility when it comes to returning this money. Make sure to keep track of these payments—set up an automated system through your bank if you can—so that these monthly amounts are taken care of on a regular basis.

Ask To Be an Authorized User To Build Credit

A trusted family member or friend can provide a helpful boost when it comes to building your credit.

If they have used their credit cards well over a long period of time and have achieved a good credit score, you can ask them to add you as an authorized user so that these achievements will be counted within your credit history, too.

As an authorized user, you don’t have to actually use the credit card yourself. In fact, your family member or friend doesn’t necessarily have to give you access to it. Instead, they can continue using it as they have been, and you will both enjoy a good credit score. From there, you can work toward obtaining your own credit card by yourself.

Secured Credit Cards and Credit-Builder Loans

Taking out a secured credit card or credit-builder loan can also help build your credit for a car purchase over the short term.

With a secured credit card, the money that is being used is already yours to begin with. The amount you put toward it becomes the line of credit with which you can make payments.

With a credit-builder loan, you “borrow” a certain amount of money. The difference is that it actually stays in your account the whole time. You basically act as though you’ve borrowed this amount and are repaying it. In actuality, you’re just doubling the amount you’ve “borrowed” and will now have some money in savings, too.

Apply for Financing

After taking some time to build your credit, you may be ready to apply for financing at a car dealership. At Sheridan Nissan, we have a finance application here on our website for drivers near New Castle, Wilmington, and Newark, DE, to conveniently access when they’re ready.

Our finance professionals will then work with you to determine the best lease or loan term based on your finances and personal needs.

We have a few tools that can help you out, as well, including a payment calculator that can provide estimates on a future payment plan. There’s also a trade-in tool that can help you determine how much your current vehicle is worth.

You can check out those tools, fill out our application, and contact our team at any time if you have any questions!