Americans are struggling with bad credit. Bankruptcies and foreclosures are up, according to research conducted by the Federal Reserve. Household debt is at a record high and this unprecedented level of debt concerns some analysts, who believe there is a substantial risk to the overall financial health of the American household.
But it’s not all bad news. If you’ve suffered a financial setback, bankruptcy or foreclosure, don’t wipe your hands clean of credit. No credit can be the same as bad credit! And doing nothing is not an option. Start over with a strategic plan to rebuild your credit by establishing healthy credit relationships. Consumers can recover from bad debt much more quickly than many people believe.
There are many myths about bad credit. Some believe a strike against credit lasts for years or may never be re-established. This is simply not true. The quicker a consumer moves to establish credit relationships, the quicker a credit score will improve.
Part of the formula that determines credit score is determining the length of the credit relationships. The longer credit has been established and regular payments have been made, the higher the rating.
A great way to begin to increase your credit score, establish a great credit relationship and secure reliable transportation to work, is by purchasing a car. Making regular payments for a new vehicle is a great way to establish credit and make a statement about your ability to make timely payments and manage your financial responsibilities.
Another great advantage to making a car purchase part of your strategic credit building plan is that car dealers often offer in-house financing and are willing to work with consumers, when traditional lenders may be less willing to enter into a credit relationship. Establishing your credit and becoming a reliable customer with a reputable dealer can open the first door to establishing credit for a new mortgage, or credit companies.
Remember – doing nothing is not an option. Take action today! Call today to learn about your options for buying a new car that will provide you with reliable transportation and a reliable credit rating!