How Arizona Consumers can Guard their Credit Scores against Auto Loan Mistakes

A lot of Arizona consumers have found that car ownership is unavoidable and expensive. It’s easy to finance a vehicle that you think you can afford only to be overwhelmed by your monthly payments. The truth is that too many Arizona car buyers don’t realize how much they’ll be paying in interest charges. They may also forget to set aside money in their budgets for cost of ownership expenses. These include fuel, auto insurance, maintenance work, and repairs. Often, Arizonians who already have bad credit miss a car payment or two. They may even default on their loan, and end up having their vehicle repossessed. This just makes their bad credit worse. Repossession also leaves them with fees that they can’t pay and a lack of transportation. However, with careful planning and realistic expectations, you can finance the car you need without blowing your budget or ruining your credit score. Should Arizonians with Low Credit Scores Finance their Vehicle Purchases? One surefire way to avoid going into debt over a car purchase in Arizona is to buy an inexpensive vehicle outright with cash. This will also allow you to avoid the high interest rates that come with bad credit auto loans. Yet, there are three reasons why buying a cheaper car with cash may not be the best idea. While it won’t hurt your credit score, paying for a vehicle with cash won’t do anything to help it either. You have to use credit in order to build good credit. So, yes, taking out an auto loan means taking on debt, but it will also give you a chance...