Why I Financed My Car Purchase

NOT my car
NOT my car

About two years ago, I did what many financial gurus would tell you is the worst financial decision you can make: I bought a new car. Now, we could sit here and argue back and forth all day about why I chose this route over getting a used or certified pre-owned car, but I think the decision was right for me at the time. (I’m sure this will be the topic of future posts as well!).

NPR recently reported some statistics which showed that Americans are taking on riskier and more expensive loans to finance fancier and more expensive cars. Taking out a car loan, even when you can buy your car outright with cash, isn’t necessarily a bad financial decision. Here’s why I chose to finance my car and put my money elsewhere, instead of on a big down payment.

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Boosting Your Credit Score

liftoffI already posted about what makes up your credit score. Knowing what is in your report and how it impacts your score isn’t enough though. Here are some basic tips which will not only help you increase your score, but avoid hurting it as well.

These guidelines will not improve your score overnight.  However, by nurturing these good habits over time, your score will go up. Remember, your credit score is compiled from your full credit report which serves as a snapshot of your financial history. Improving your score will allow you to get credit more easily and at a lower interest rate in the future.  Continue reading

What Determines Your Credit Score?

credit-score

Credit scores (and the credit reports they are generated from) are used by financial institutions to gauge how risky it is to lend money or open lines of credit to you. The details of your credit report, which include your loans, past payments, and credit cards, all factor into your score that is generated. So what actually influences your credit score? Understanding the specific components will help you learn how to improve it, and a better score will lead to lower loan interest rates and more long-term savings.

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