Will A GMAC Car Loan Affect Your Credit Score?

A GMAC car loan is a specific type of installment credit that will increase your credit score if you make payments on time. GMAC is a global financing services company today, but it started as a way for General Motors to work with dealers and purchasers of its GM vehicles in order to provide financing the day of the purchase. GMAC car loans are still among the most popular type of GMAC loans and are a great way to boost your credit score.

Add an installment loan to your credit mix - Your FICO score does take into consideration the types of credit you have available. Revolving loans, such as credit cards and home equity lines, are only part of the mix. Installment loans, which require regular monthly payments toward a principal debt, are a sign of balanced credit. 

Make regular payments - Paying your bill each month without delay shows responsible financial health. Doing this consistently for 3 to 5 years, as is typical with a car loan, will boost your credit score significantly.

Pay off the loan on time - Paying off the loan in the appropriate amount of time without refinancing or consolidating is a sign of good faith to lenders. Paying off large loans on schedule is one of the fastest ways to build credit.

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