The Official Blog of Easton Motors

The Official Blog of Easton Motors

If you're eagerly searching for ways to restore your credit, it might be tempting to buy a new car. New cars typically (though not always!) break down less frequently than used cars, usually require less up-front maintenance, and don't come with a pesky monthly car payment. But just because you might have lucked into some unexpected cash, doesn't mean that buying a new car--or any other large item--outright, is the way to go. In fact, to rebuild your credit, you're actually going to want to take out a loan. 

Say what? Why would I take out a loan, and risk credit rejection, if I have the money for a new car today?

futureforblog

Create a Positive Paper Trail With a Monthly Car Payment

Simple: taking out a car loan and repaying it faithfully is one of the best ways to begin re-establishing your credit. A monthly car payment essentially creates a paper trail that other lenders can look at and review when it comes time to making a larger life purchase--like a house--or getting more favorable interest rates down the line. Paying outright for a new car doesn't create a paper trail, and therefore is a missed chance at restoring your credit score and credit reputation. 

If your cash flow is enough to purchase a car, but your credit says you probably shouldn't, consider applying for a car loan from a reputable lending firm that will report your good repayment behavior to the major credit bureaus. 

Posted on Jun 8, 2015 3:52:21 PM by Admin in Bad Credit Myths, in Installment Credit, in Best Credit Practices, in Money: Do's & Don'ts, in Common Financial Mistakes, in Buying Used Car, in car payment

Admin

Written by Admin

Subscribe to Our Blog Newsletter

Lists by Topic

see all

Recent Posts

Posts by Topic

see all