Finance question..How do I get credit off this purchase??

Question

Lets say a motorcycle costs $5,000. And that I have $5,000 in my pocket in cash. Well i'de like to establish some credit, If I get into a note will i end up paying more? and if i do get a note and pay it off in like 4 payments, will my credit score be raised?

Answer 1

If you get into a note/loan yes you will pay more.  Why not put the purchase on a credit card and then pay it off at the next payment.  This will help your credit score.

Answer 2

Any loan will have interest. So yes, it will cost more.

You would have to make payments for at least 6 months before it would make any kind of impact on your credit.  Even then, it would give you a big score increase.

You really need at least 24 months of consistent, on-time payment history to improve your score -- and more than just one short term installment loan.