Sadly, it doesn't take much for your credit rating to take a pretty serious hit. An unexpected household expense can cause you to start juggling bills, or running up a credit card balance higher than you normally would. Make a payment late because you needed to wait for payday, and suddenly things have taken a turn for the worse. But don't worry. You can work your way out of this situation, and a car loan is one of the first — and best — steps in doing so.

Generally, a credit score between 300 and 499 is considered to be a bad credit score, though many lenders consider any score below 680 to be a problem (the average American's credit score is 682). When you make payments late, or skip payments altogether, this has a negative impact on your credit score. Having majority of your credit come in the form of unsecured debt like credit cards also has a negative effect, as does using most of that available credit and carrying that balance over month-to-month.

However, when you take advantage of our special auto financing options, you're taking the first step to taking control of your credit situation. Since your car loan or lease is a secured debt, that starts to balance your total debt more positively. Then, each payment you make gets reported to the credit agencies and helps improve your score.

At Helfman Dodge Chrysler Jeep Ram Fiat, our team has a wealth of experience with helping customers with a variety of credit histories get the financing they need for the car they want. We encourage you to contact us and learn how we can assist you!

Categories: Finance