would buying a car improve my credit score?

Jed Porada: If you are paying cash for the car it will have no effect at all on your credit report.A credit report is a measure of debt. If you pay cash fo the car there is no debt.

Irma Poiter: It won't help one bit. If you pay cash there's nothing to report to the credit bureaus. You build credit by taking out a loan and paying it off in a timely manner. Many people take out loans or get credit cards to buy things they could pay cash for just to build credit.

Elvin Weichbrodt: Why would you do that?Like the others mention, if you're paying it off in full, this is not a concern of yours.If you were financing it, you'd be deemed an idiot, because that's a hell of a risk to take if you got the car repoed....Show more

Loise Mausser: You are paying $34,000 in cash for a new car and you are worried about your credit ? Why ?Buy the car for cash.And then take out a secured loan with a credit union for $4000-5000 and make monthly payments for 12-24 months.! Interest would be very low because the credit union would keep the money on deposit.That will build your credit cheaply.But, if you can afford a $34000 car for cash, do you REALLY need credit ?...Show more

Lanita Reichman: Paying cash for cars or other items has no affect -- good or bad -- on your credit. It's only when you have credit accounts such as loans, mortgages, credit cards, and department store accounts that your credit is affected. If you have credit accounts and you consistently make payments on time, keep low balances, and don't default, you'll increase your credit score. Some people like to avoid credit at all costs, but it's not very smart in these modern times when your credit score affects not only what you pay for loans and home mortgages, but what you pay for car insurance and, in some cases, even whether you get a job. It's better to have credit and not need it than to need it and not have it....Show more

Maryland Gareau: Not at all. In fac! t, it will probably bring down your credit score roughly 5% be! cause you are authorizing hard inquiries to your report, taking on more debt and decreasing the average length of your loans and lines of credit. Over the course of 5 years, it will come back up (assuming everything else remains the same), but getting a car loan will not help your credit any more than opening up a Visa card, charging $100 every month and paying the entire balance off as soon as you get the bill....Show more