Monthly Archives: May 2024

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A Newcomer’s Guide to Buying a Car

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Posted in Charge-A-Car Tips

Buying a car can feel overwhelming for beginners, but fear not! Follow our simple guidelines to breeze through your first car-buying experience.

Research, Research, Research

Before diving into the car-buying process, arm yourself with knowledge. What type of car suits your needs? Which brand appeals to you? What are the insurance costs? Set your budget and explore financing options. Research is key.

Begin by identifying your car requirements. Consider features, seating capacity, towing needs, or cargo space. Explore fuel options beyond gasoline; diesel and hybrid cars offer alternatives with varying mileage benefits. Electric vehicles, though evolving, promise savings on fuel costs. Factor in not just the down payment but also financing and insurance expenses. Be aware that interest rates and insurance premiums can significantly impact your monthly expenses. Have your finances in order before coming to the dealership to finance and buy– it will help once you’re ready to make a purchase. Many dealerships even offer loans and credit checks in-house for your convenience! Charge-A-Car is no exception, with great financing options right on our website. 

Navigating the Dealership Experience

Different dealerships have different stocks of cars; a GMC Yukon XL drives much differently than a 2011 Honda Accord. It’s always a good idea to test drive any make and model you’re considering buying. Different cars handle differently and it’s important to get a good feel for a new vehicle before signing into a years-long commitment.

Once you’ve decided that you like a car, it’s time to negotiate. Negotiating can seem intimidating, but it’s always important to get the best deal possible. Come prepared with any paperwork needed, a firm understanding of your credit history, and the right questions to ask.

Seek Assistance When Buying A Car

Feeling uncertain or overwhelmed? Don’t hesitate to seek guidance. Forge a relationship with your local dealer. At Charge-A-Car, we’re committed to helping you find the perfect vehicle. Our goal is your satisfaction and ensuring your car meets your needs. Drop by today, and let us assist you in finding a car you’ll adore.

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Can You Use Your New Car To Build Credit?

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Posted in Blog

Credit can be a major roadblock to new car buyers. Growing your credit can be a challenge for some, but can you use a car loan to build credit?

What Influences Your Credit

In the same way that there are different ways to build your credit score, a few factors influence the fluctuation of credit over time. FICO – the data analytics company that developed credit calculation from credit reporting agencies – lists payment history, amounts owed, length of credit history, new credit, and types of credit as some of the key influencers of your credit score.

Some ways you can influence your credit include your ability to make payments on time, the amount of money owed, how long you’ve held the loan or credit line, how frequently you open new credit accounts, and the mix in types of credit (credit card, installments, retail accounts, mortgage, auto loans).

How A Car Loan Can Affect Your Score

A long-term loan like an auto loan can prove to credit institutions that you’re a ‘responsible borrower’ which is one of the significant premises behind the credit system. When applying for any loan, it’s important to get the best rate possible. While your initial rate may not be stellar, there is always the option to refinance your loan in the future once your credit has improved. Refinancing is the process of getting a new loan to pay off your existing loan. And, while new loans can cause your credit to briefly lower, a refinanced loan can significantly improve your interest rate. When deciding to refinance, wait until you’ve seen significant growth to your credit and during a period of low interest rates for maximum effectiveness.

No Credit? Smaller Ways To Build Credit Before An Auto Loan

An auto loan can be a big step, but there are smaller, easier ways to build your score until you’re ready to use an auto loan to build credit. One of the easiest and most common ways to build credit is by paying down existing debt balances and using credit cards. If you’re new to credit, building a credit history with credit cards for small purchases and paying off your full bill each statement will get you well on your way! If you already have credit lines, paying off your existing debt down to 30% utilization is another great way.

Get On The Road Today While You Build Credit

Financing a car is a big deal. At Charge-A-Car, our financing options can get you back on the road while building your credit. A car is a necessity, and you can’t afford not to be on the move! While an auto loan isn’t a magic bullet for improving your credit, it’s one of several options you can use to work towards a higher score. Let our team help you achieve your dreams of car ownership and great credit!