Thursday, January 12, 2017
Car Dealers Help Consumers Increase Credit Ratings
People who find themselves in a bad credit situation tend to carry the weight of the world on their shoulders. The reality of having bad credit seems to indicate a dire situation in the modern world. In most circles, bad credit is defined as a “big three” composite report that equals less than 630. This is a score that illustrates only certain unfortunate turns, rather than the potential each consumer has for building a better financial reputation.
One of the best ways to initiate a personal effort to rebuild credit it to enter into a lending agreement for a new or used vehicle. Car dealerships have extraordinary leeway when it comes to extending credit to consumers. Payment plans negotiated through ethical car dealers are based on personal interviews, lifestyle matching, and pure need for reliable transportation. The best part is, a positive consumer and car dealer relationship can result in a positive boost to a poor credit score.
As independent entities, car dealerships can choose to weigh the risks of extending credit for a vehicle purchase on things that credit agencies do not. Most car dealerships only require proof of employment and residency from people who are looking to purchase a car. Dealers understand that the need for transportation is vital in any living situation, and ownership of a car allows borrowers to increase their spending potential. The benefit is that a good consumer-to-dealer relationship can result in a major boost to any bad credit score.
No one with a poor credit rating should assume that owning a vehicle is not an option. Car dealers have many options for consumers who are experiencing financial difficulties. With only a simple demonstration of the ability to pay for a good vehicle, dealers can help certain people climb out of poor credit situations.