Will an auto loan help me rebuild my credit?

If you make timely payments, an auto loan will help you build your credit if the lender reports your payments to one or more of the three major credit bureaus (Experian, Equifax, and TransUnion).

Some auto lenders, often called “Buy Here Pay Here” lenders, may not report your loan at all. Some of these dealers may market themselves as a way to rebuild your credit, but you don’t get this benefit if they do not report your loan to a credit reporting bureau. If you are considering taking out a loan with a Buy Here Pay Here dealer, make sure you get a promise in writing that they will report your on-time payments.

Remember that taking out an auto loan will only help rebuild your credit if you make your payments on time.

Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

Legal disclaimer

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer