Does a car loan help build my credit? I want to get a home loan?

Best Answer:

Jan: It depends on a few things.

If you have a life insurance policy on the loan it will automatically pay off the loan in the event of the owners death. You can buy these policies when you sign the finance contract on the loan.

The ESTATE of the deceased person received ALL of the assets of that person. If the deceased person has a valid Will it identifies an executor for the estate. This is usually a spouse or eldest child. The executor of the estate is responsible for managing the assets of the estate. All of their personal property is included in the estate. If they had a life insurance policy the insurance pays off any and all debts (well as much as the policy can afford). So if the person had credit card debt, a car loan, a home loan, any personal debt the life insurance policy would pay as much of the debt off as it could afford.

Any left over assets including life insurance money and personal possessions are distributed among the surviving family based on the terms of the Will.

The ONLY time the bank gets involved in a death is if the estate doesn't have the financial means to pay off the debt. In other words, if there is no insurance, no saving accounts, no cash in the estate and nobody steps up and pays off the debt the car gets repossessed.

Other answer:

A car loan will not get you a mortgage

It will help build your credit but the bank for the home loan will REQUIRE

3 years of tax statements

1 year of checking and savings account registers

All income from all sources

5 years of employment history

5 years of residency proof

So it is much more than a car loan to get a mortgage, there is a lot involved

Yes, the various types of credit you have had influence your credit score. So having a loan where you make a series of payments (on time) can help your credit score more than just credit card(s). If you keep up to date with payments for a car loan they will have more faith that you will keep up to date with payments for a home loan.
It does help build your credit, but credit building is a long slow process. You must show a long history of handling your finances responsibly before it makes much of a difference. Of course, buying a home is the most significant of any credit transaction in most people's lives, which means it has the strictest requirements.
Captor of sin:
Yes. As long as you don't get a co-signer. It's also relatively the easiest way to get credit started if you have no credit or are rebuilding.
Anything you pay off regularly builds credit.
any loan you have of any kind that you pay timely and don't have any unpaid balances increase your credit score
it helps build your credit
yes paying it on schedule does

Leave a Reply

Your email address will not be published. Required fields are marked *