Other than housing, the purchase or lease of a vehicle is probably the greatest expense that you will make. One alternative to paying cash for the full-price of your vehicle is to finance or lease it. You may choose to make monthly payments toward the purchase (buy), or pay for the use of the vehicle over a scheduled period of time (lease), plus any lease charges.
View the Benefits of Lease or Purchase
Whether you decide to finance or lease your vehicle, it’s important to understand your credit and how it will impact the process. Before financing your vehicle, creditors will decide whether you are eligible for an extension of credit, how much, and the cost of that extension of credit. To determine this, they may use your credit score and history. This information basically tells them how likely you are to be able to make your payments.
There are three major credit reporting bureaus that gather and track facts about your credit history. The bureaus use the information they receive from your creditors, public records and other sources to generate your credit score. Visit http://www.annualcreditreport.com/ for more information.
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