We finance people with credit problems every day, so we see firsthand what bad credit can cost. And here's something you might not expect to hear from a Buy Here Pay Here dealership: we want you to have good credit. Really good credit, if you can.
Good credit gives you choices. It can mean lower interest rates, lower payments and a lot less money spent borrowing over your lifetime. Bad credit doesn't mean you're irresponsible or that you've done something terrible. Divorce happens. People lose jobs. Medical bills happen. Sometimes life just gets expensive.
But if you're young and haven't damaged your credit yet, protect it. Future you will be very glad you did.
The Interest Rate Matters More Than You Think
Here's where credit gets expensive. Two people can buy the same vehicle, finance the same amount and end up paying very different amounts simply because they qualify for different interest rates. A higher interest rate doesn't just mean a higher payment. It can mean thousands of dollars more over the life of a loan.
And it isn't just car loans.
Your credit can affect what you pay when you borrow money for a house, a vehicle or other major purchases. Over a lifetime, the difference between borrowing with good credit and borrowing with bad credit can add up to tens of thousands of dollars.
That's why protecting your credit before you need it matters.
Start With the Boring Stuff
Building good credit isn't particularly exciting.
A lot of it comes down to doing a few simple things consistently:
Pay your bills on time.
Don't max out your credit cards.
Keep an eye on your credit reports and dispute errors you find.
Don't borrow more than you can realistically afford.
If you use credit cards, understand what interest you're paying and how carrying a balance affects what things actually cost you.
These aren't complicated financial strategies. They're habits. And the earlier you build them, the better.
Make On-Time Payments Easier
One of the easiest ways to avoid accidentally missing a payment is to use automatic payments when they're available. At Chuck Ryan Cars, there's another reason to use Auto-Pay: enroll in Auto-Pay and stay enrolled for the life of your loan, and we'll take $300 off your final payment. You don't have to remember to make your CRC payment each time, and there's a $300 reward waiting for you at the finish line.
Shopping for a Loan Doesn't Mean You Have to Take the First Offer
If you're financing a vehicle, compare your options. Talk to your bank or credit union. Ask about the interest rate, loan length and total amount you'll pay, not just the monthly payment. And don't be afraid to ask more than one lender.
Credit-scoring models generally recognize that people shop around for major loans like auto loans. Multiple auto-loan inquiries made within a relatively short shopping period may be treated as a single inquiry for scoring purposes, depending on the credit-scoring model being used.
The important part is to do your rate shopping within a relatively short period instead of spreading applications out over months.
Don't Shop by Payment Alone
A low monthly payment can look great until you realize you're going to be making it for five, six or seven years.
Always ask:
At Chuck Ryan Cars, our in-house loans are typically structured for about two to three years. That can mean a higher down payment than some longer-term financing options because you're financing less money over a shorter period. But it also means you're working toward owning the vehicle outright sooner instead of stretching the debt out for years.
Our goal is to put the title in your hand, not keep you making car payments forever.
What If Your Credit Is Already Bad?
Then you start where you are. Bad credit doesn't have to be permanent, and it doesn't tell us your whole story. We've worked with people who went through divorces, lost jobs, lost spouses or simply hit a rough stretch. CRC doesn't base the decision on the credit score alone. We still look at your credit history along with things like income, employment stability, how long you've lived in your home and your down payment. What matters is finding a financing option you can actually afford. Depending on your situation, that might mean financing directly through us. It might mean working with a bank or another lender. Our goal is to help you figure out what options are available.
CRC doesn't currently report monthly payment history directly to the credit bureaus. But if you've built a strong payment history with us, we're happy to provide a letter on company letterhead documenting that history that you can take to a bank or other lender.
And if your credit improves enough that a bank can give you better financing someday?
We'll cheer you on.
And we hope you'll still come see us. We have long-standing relationships with local banks, and we can help you explore bank financing and contact lenders on your behalf. Better credit gives you more options. We want you to have them, whether you finance directly through us or through a bank.
We want you to succeed, and we'd still like to earn your business when you do.
Learn It Before You Need It
You don't need to become a financial expert. You just need to understand the basics well enough to ask good questions and recognize when something doesn't make sense. If you're 18, 20 or 22 and just starting to build credit, learn how it works now. If you're older and your credit has taken some hits, start rebuilding from where you are. Good credit gives you options. And options can save you a lot of money.
At Chuck Ryan Cars, we'll work with you whether your credit is excellent, terrible or somewhere in between. But we'd much rather help you build and protect good credit than profit from you having bad credit.
Bad credit? No credit? We can help. But good credit? We want that for you, too.
