Reason #1: Avoid risky alternative financing solutions
If you need cash, financing is a good way to get it when you’re running short on income. You can finance a home renovation or a car repair or even an investment if you know how to make your money really work for you. But you always want to stick with traditional financing. To do that, you need good credit.
There are plenty of “alternative financing solutions” (AFS) available that promise you instant cash in your checking account with no credit check. You can get payday loans or cash advances or short-term installment loans. All of these are effectively the exact same type of lending tool. And the trade-off for no credit check is that you pay extremely high finance charges for these types of credit. Short-term loans tend to have interest rates that are 300% or even 3000%. You can pay as much as $30 for every $100 that you finance. These lenders also have notoriously terrible customer service. They use ACH Direct Debit to withdraw funds to pay the loan off directly from your checking account. It can be impossible to cancel or stop payment if you don’t have funds available, leading to NSF fees on the loan and overdraft fees on your account. Alternative financing solutions are never a good solution and should be avoided at all costs. This means that you need good credit to qualify for traditional financing. Otherwise, your fast-cash solution could leave you in a much worse financial position than when you started.
Reason #2: You can take advantage of advertised dealership offers
All those no-money-down, no-interest for X years offers are not available to most consumers. But they do not tell you that until you’re there. Then they basically bait and switch you into a different loan that does not offer nearly as much value. With a good or excellent credit score, you can qualify for all those dealer offers as advertised. You can also use your good credit score to shop around for the best financing. First, hit up your bank, credit union or favorite online lender. Tell them you want to prequalify for an auto loan. They will check your credit and tell you how much car you can really afford.
Reason #3: There is a 1 in 4 chance your credit report has an error
That is not some made-up statistic. It comes directly from a consumer credit report study by the Federal Trade Commission. In 2013, the FTC found that one in four reports contains errors. Even worse, one in five reports has an error that would affect a consumer’s credit score. And one in twenty has an error that would drag down your score by 25 points or more.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.