If you already have a credit score in the 800s and you make payments on a car loan, it won’t go much higher because the highest you can go is 850.
But if you have a low credit score, like in the 400s, making regular and on time payments can, over the long term, raise your credit score quite a bit.
Does getting a car loan increase your credit score?
Taking out a car loan can affect your credit in a number of ways. When you start making payments this increases your credit utilization, which decreases your credit score until the loan is paid or when the balance is 30% or less of the original loan amount.”
Photo in the article by “Mount Pleasant Granary”