Car loans/ Credit score w/o credit card [Newbie Questions]

[dadxfour]

Hi guys, I'm looking to buy a old 2nd hand car ('05 and before). Looking to get a car loan and pay to start building up the credit score.

I've just started working, so I do not have a credit card yet, at least not for another 4 months etc. Can I start building my credit score already/

Does the credit score improve more when we pay more per month? (monthly installment)

Lets say a monthly payment of 300 for a cheaper car or monthly payment of 700 for a more exp car. Does the 700/month one improve credit score more, or does it just see if we make the payments in time?

Sorry in advance if this is a very newbie/lazy question, I've tried searching online but couldn't really find info for malaysia. Would appreciate if i can get some pointers to improve my credit score as a whole

 

[akadascribe]

@dadxfour You can’t get bank loan for cars older than 10 years and the loan tenure must end within 15 years of cars manufacturing date.

Example: 2014 car can be bought by maximum 5 years loan.
2018 car - max 9 years loan

This is only valid for bank hire purchase loan.

If you are adamant about it, you can get aeon credit loan with a very high interest rate. Good luck buying an old car with high interest rate and paying for the maintenance.

 

[dadxfour]

@akadascribe Oh hey! its you again ahhaa, Thanks for the heads up for the car related stuff and for loans. Wasn't aware of this.

But yeah the aeon credit loan has a crazyy interest rate damn.

 

[ineedadvice101]

@dadxfour https://www.experian.com/blogs/ask-...score-basics/what-affects-your-credit-scores/

Paying your bills on time is 35% of your credit score. Not paying on time = penalty on credit score if they report to the credit agency. So paying your loan on time isn't improving your credit score, its to prevent your credit score from dropping.

Taking a loan will lower your credit score. The more higher your credit utilization, the bigger the negative impact on credit score. That's 30% of your credit score.

So doesn't matter 300 or 700 monthly payment, still have to pay on time just to avoid penalties. Obviously 700 is higher credit utilization so bigger penalty on your credit score.

 

[dadxfour]

@ineedadvice101 Thanks for the clarification! Am still very new to credit and all! Thanks again!