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Posted in Auto Loans
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ktompson

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if i can afford to cash out a new car should i get an auto loan to help boost my credit score

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If you have the cash to pay for the car, it may be wiser to do just that and save yourself a lot of interest money. If you are wanting a loan to build credit, a 1k installment loan would be sufficient. However, if you expect to want to finance an expensive vehicle sometime down the road in the future, then getting a loan for this car may help you succeed in getting a sizeable auto loan in the future. I guess the answer to this question will change among different needs. Also keep in mind that credit cards actually do more to build and maintain credit. The basic credit building tools (just to start with) is three credit cards and one installment loan. The amount of the installment loan does not matter, just so an ontime payment is reported every month.

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