Is it possible for a car loan to show as a positive on your credit?
Written By: admin on October 21, 2009
5 Comments
I’ve been paying my car payment on time for 12 months in a row now and my car loan still shows as a negative on my credit. How many "on time" payments do I need to make before that shows as a positive on my credit? Or does it ever?
Thanks!
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Auto finance is what I do for a living and if you have made 12-payments and never been late your account should show as a I-1 which is as high as a installment loan can show.
If this is not how your account reads there is something incorrect.
Review your payment history and make sure all payments are listed as 1 which means they were made on time.
You may need to contact customer service with whoever your lender is to get this figured out.
Excellent luck.
I once had a situation where we got a loan from a financial place (was not a bank) and paid on time for 2 years. When we had our credit checked it was not there. I questioned about it and the company said that they ONLY report if we DID NOT make timely payments. All that time we were making on time payments we thought we were doing excellent, but in the long run it was not even getting reported to start with.
I was also told by a person to help us build a budget that if we are having problems with our credit scores that it could possibly take a year or longer to repair any hurt done to it.
If you want a positive on your credit ( such as a car loan) I would use a bank such as regions, compass or what ever you like. Small loan offices may or may not report it and buy here pay here places may not report it.
It is a "negative" because it is a monthly obligation…unless you have previously missed payments. Once it is paid off it should improve your credit.
If all your payments have been on-time, it should not show as a "negative." Something sounds incorrect here.
If it was always on time, then it is positive after the very first payment. You only need one on-time payment for it to be positive, if no payments are late.
Once any payment is late, it is negative for at least 7 years.
The number of on time payments is not the issue. Always on time = positive. Ever late = negative. It can be one payment or 1000 payments, but these two things do not change: Always on time = positive. Ever late = negative.