Can Credit Cards and Bad Credit Car Loans Be Combined to Rebuild Credit?

A lot of times, credit counselors advise their clients to choose between credit cards and big purchase loans to rebuild their credit. Bad credit car loans maybe a source for such a strategy. When compared to each other, the credit card is often seen as a less worthy method for credit score rebuilding. This is because revolving credit can saddle consumers with high interest payouts and slow credit rebuild.

Car loans function as installment credit, on the other hand. This means that routine scheduled payments of a set amount are made without the occurrence of surprise interest or fees. Generally, the effects of keeping such a schedule show in an improved credit score more quickly. Some people may wonder if there is a way to combine efforts to good effect, though.

While traditional credit cards extend money as a loan, secured credit cards extend funds that you have backed up via a deposit of typically $200 or more. Though you have put in money to secure it, your monthly payments must come from a source other than the secured amount. The secured amount can only be used to pay the default if your credit ever falls back into arrears. Meanwhile, high interest rates are to be expected with secured credit cards.

Bad credit car loans on the other hand are available as installment credit. This means that the lender schedules your payments for monthly repay at a consistent amount with the fees included. You still pay interest on the loan, but your monthly payments are the same for the duration of the loan. Some people would suggest that securing a credit card to pay the loan might be a good idea, but combining these two forms of credit to rebuild can be dangerous and costly. Essentially, you would be paying interest on two loans for the privilege of paying off one.

In the end, the better idea by far is to work with us at Vancouver Auto Credit for your bad credit car loan and help simplify your payback schedule. Keeping up with such a loan is not difficult and can be the key to your future credit success.

How to Evaluate a Used Car Dealership

When you are looking at used cars, you have to evaluate the dealership and the vehicle to ensure you are getting the best deal. It is important that you are working with a dealership that has a good reputation for financing options, customer service and vehicle quality. There are a few tips you can use to evaluate them to ensure that they will provide the best service.

Read Plenty of Reviews

One of the great things about the internet is that you can find information about any business, including car dealerships of all sizes. You want to simply Google the name of the dealership and the location, including both city and state. You will likely get a number of results for review pages so you can really dig deep and see what past customers have to say. It is best to read at least 30 reviews for a comprehensive view of the dealership’s reputation.

Check the Better Business Bureau

When you are on the BBB website, you can get more information about how customers feel about the dealership. You will also see the rating. They use a number grading scale just like you had in school. So, an “A” rating is best and an “F” rating is worst. Head to the Dealership

The last part of the process is to see how you are treated once you get to the dealership. Consider how they accommodate you and the level of customer service that you receive. You can then look at the big picture and see how your personal experience matches up to the online reviews and BBB information to decide if you will work with the dealership.

It is ideal to evaluate the dealership before you even step onto the lot. Most of these tasks can be done from home when you have spare time. Just look thoroughly and keep an open mind during the process to ensure you get the information you need.

How to Secure the Best Car Loan

You may have spent countless hours looking for the perfect new car and are eager to move into the actual car buying process. However, if you plan on using a car loan to help pay for your new vehicle, then you should spend an equal amount of time looking for car loans. Here is how you can make sure that you secure the best car loan available to you.

Pay Attention to the Pricing

When you are looking for a car loan you should take into account how much you will have to pay per month as well as how much the loan costs overall. This can help you avoid falling for bad deals, which are more prevalent than many people realize. It is important to have an idea of how much you are able to spend before you begin shopping around for a car loan. Having a budget in place can help you avoid getting locked into an adverse deal.

Loan Duration Matters

Another simple way to ensure that you are securing the best car loan is by paying attention to the overall length of the loan. Generally, the shorter the loan is the better. Some people hesitate about getting shorter loans because it tends to mean the payments are more expensive month to month. However, if you want to save more money in the end, then you may want to consider getting a short car loan.

Sometimes people choose longer loan terms since it allows them to space out their payments. The biggest downfall to longer loan terms is that the interest rates can add up over time. In the end, the most important thing is to choose a car loan that you can afford to pay for each month. As you can see, purchasing a car loan takes just as much thought as buying a car. By studying the overall costs and the loan length, you will be able to find the best car loan.