Rebuilding Credit

You just finished university and got offered a great job that is a 30-minute drive away – no public transport available. Time to get your first vehicle. Problem is, you have student loans, too many credit cards, and … bad credit. Don’t fret. There is a way out.

First Step. Make at least the minimum payment on all your credit cards and loans. This shows the lenders you are trying. Paying double on one and not paying another hurts more than it helps.

Second Step. Talk with your sales advisor and explain your situation. A good dealer is there to help you. They will often get you pre-approved so you know what range to look at. Also have a good idea of what monthly payment you are comfortable with. Keep in mind; you may have to incur a higher interest rate or have a co-signer to secure the loan (as a result of your credit issues).

Third Step. Once you are pre-approved for an amount, and know you can handle the monthly payments, choose your vehicle.

Fourth Step. Before going to the club or taking a vacation, make sure you can make all your payments. Paying on time every month goes a long way to quickly rebuilding your credit.

At the end of the day, you must remember that defaulting again will cause more harm than you realize. Be responsible and live within your means. One day you will look back and have fond memories of the first vehicle you ever bought.