TaKe Care of your loan and take care of your credit

Your Auto Loan and your Credit-

Whether  you are just starting out with using credit or previously had issues with your credit, your auto loan with Orca Funding can be a key factor to your future financial well-being.  A high credit score and maybe more importantly,  great credit profile are significant contributors to your own financial health and flexibility. By taking care of your loan with Orca Funding, you may be able develop a positive credit history  and show other potential creditors in the future that you can be trusted to borrow money from them. Below is a brief description of how it all works.

Using your loan with Orca Funding (Orca) as an example, here is a brief description of how your loan can  positively affect your credit. Once your loan was originated (opened), it was reported to credit reporting agencies as a new account. The date it was opened, how much the balance is as well as how long the loan is for (term) will be displayed on your credit report. Every time you make a payment on the loan, Orca then reports that payment to the credit bureau(s). If you pay the full amount of your payment  and you pay it on time, the payment itself is recorded on the account on your credit report and therefore, is a positive mark on your credit report. Every month you make at least the full payment your credit profile could be improving and your credit score could be going up so therefore. the more payments you make, the better your credit is getting. It should be noted that your credit profile and score will only improve if you have no other credit or you are paying all of your other current credit obligations as well. If you have other loans or credit cards out there that you are not paying on or are late on, your overall credit is not improving and your score could even be going down depending on the rest of your credit situation.  Therefore, you must pay all of your credit obligations on time for your timely payments on your auto loan with Orca to aid in building positive credit.

As with any credit accounts on your credit file, paying your monthly payment on time with Orca will develop your credit profile over time. With a strong credit profile that demonstrates you are financially stable and responsible, you will have other opportunities to further develop your credit and you may become eligible to take advantage of other credit offers out there that will expand your financial flexibility and help you save money. For example, credit card offers may offer low introductory rates to help you save money on purchases or you may become eligible for those low APR offers on your next auto loan.  

The primary  key to financial and credit health is to not over extend yourself. While sometimes life brings unexpected challenges at times that place additional stress on your budget, in general you should be highly aware of what you earn and what you can afford. If you end up having more monthly obligations than income, you will ultimately be unable to make all of those payments you have obligated yourself to and could ruin your credit. With your credit damaged, getting through those unexpected events in life that are inevitable, will be that much more difficult. 

Therefore, you should view your auto loan as one of the most important items on your credit that must be affordable. Your auto loan is the is the key to your daily transportation which gets you and your family to work, school and wherever else you need to go. Know how much you can afford prior to purchasing and equally important, know how much it will cost to insure your vehicle with the required amount of coverage. Knowing your budget is the first step toward earning good credit as you will allow yourself to make those monthly payments on time and in full every month. In terms of your auto loan, being able to afford your payments and paying them on time, is one of the easiest ways to develop your credit history and create the opportunity to have the financial flexibility the concept of 'credit' was originally intended for.