Should You Put A Down Payment on A Car?
Houston Credit Repair
The Car Buying Process -Houston Credit Repair
The car buying process can go either way, strenuous and difficult or easy as picking out which car you want and signing for it. The determining factor is your credit. If you have Impeccable Credit (750+) Houston Credit Repair is simple, low rate no down payment. If your credit is 620 you can qualify for a car with no down payment.
What’s The Deal With Down Payments?
Anytime you put a down payment on a car with a 620+ credit score it typically goes directly to the salesperson as their commission. Typically that is the first thing they ask when purchasing a car is “How much do you have for a down payment?”. Down payment does not matter when you have Impeccable Credit or just qualifying credit.
How Does Paying Off A Car Note Help?
Paying off your car does not increase your score drastically since it is an installment loan on your credit report. Installment loans are weighted with less points than other factors such as secured or unsecured lines of credit. Installment loans may have more money involved, but when it comes to the payoff and points they are not going to increase your credit score drastically (50-200 points).
Many times a sales person will say that if you take the high rate you can refinance later. You can always refinance with Impeccable Credit (750+) which usually takes about 6-12 months. You can either get a better car with a lower rate or refinance.
Ask Vanessa Perry, Houston Credit Repair Specialist
According to Houston Credit Repair Specialist, Vanessa Perry, if your credit is 620 and above there is no reason that you would need to put a down payment on a car. Check out the latest episode above and other episodes in Ask Impeccable.