How to Use Car Financing Wisely
Posted on December 17, 2021 by Rick Griffith
Our mission at Car Credit is to help you drive a safe, quality used car, despite your credit history. Because we do our financing in-house here, we have a great deal of flexibility when approving you for a loan. Instead of using a conventional credit score, we can base our lending plan on your income. That being said, financing is a tool to help you get a good car, and it should be used wisely. In this blog, we’ll discuss some essential ways to use financing wisely, so you can get into a good car and start building your credit score.
Make a Down Payment
When buying a car, you should always want to put money down. There are all kinds of ads for very little or no down payment. Those ads are designed to get you in the door. Putting a down payment on your car purchase always strengthens your approval chances, but it helps make your payment more affordable and saves you money in interest costs.
Pay on Time to Improve Your Credit Score
Doing everything in your power to make on-time payments is another must. 3-4 years of on-time car payments can do more than almost anything else to boost your credit rating. Likewise, 1-2 or even 3 years of slow and late payments will tank your credit rating fast.
Car Credit Wants to Work with You
At Car Credit, we work with problem credit. We understand that you have a limited down payment, but that shouldn’t mean not putting anything down. We work hard with your budget to approve you for an affordable car and payment. We make sure they are reliable cars and are not needing additional expenses when they leave our dealership, but you must make your payments on time. Only you can truly improve your credit by consistent on-time payments.