How Creditors Gamble with Your Credit: 3 Ways to Protect Yourself

When an in-house finance dealership sells you a car, they are gambling that you will be responsible. They look at your credit report and make a decision based on your credit history. Will they leave one of their cars in your care?

Let’s say they decide to trust you. Using in-house financing, they loan you a car and you start making payments. What happens if you run into trouble and can’t make a payment? This is where the gamble comes into play. The dealership will refuse to lose their side of the agreement. But you can’t get along without a car. How do you protect yourself when the gamble starts to slide downhill?

Make Double Payments

A car dealership that finances in-house will expect payments as regularly as financing through a bank. Protect yourself with double payments. Double payments do not mean you are paying your car off twice as fast. It means you are paying more than the required amount. Instead of $250 a month, you pay $300. This will help you pay the car off faster and show that you are responsible. Double payments may not be an option every month, but paying more money more often will protect you during the bad months.

Get a Co-Signer

If your credit is poor, finding a friend or family member willing to sign the loan with you can create a protection. The in-house financing creditor is not only gambling with you, but with you and another responsible party. They are more willing to take that gamble if they know you have more help on your side.

Find a loan within your means

Just because you can get a car doesn’t mean you should get the most expensive, fasted, flashiest car in the lot. Be sure the in-house financing loan is affordable for you budget. A $3000 car will get you from point A to point B just as easily as a $30,000 car. Protect yourself by purchasing a car within your means from an in-house financial dealership like CarLoanUnlimited.com.

If you have any more questions about how to protect your credit in the dealership gamble, talk to any one of our dealers at your local Orlando CarLoanUnlimited dealerships.