Credit or cash for new car?
I had no credit for a few years because of giving up credit cards. I saw you on wgn and got a secure card a year ago which I use to build credit now. My question is I will need a new car soon so is it better for my credit rating paying cash or get financing?
Terry Says
So I assume you’ve checked your credit report and credit score. If they are above 750, there’s no real reason to finance your car. (Except that lately cars are in such demand that dealers are only selling to people who finance because they make more money that way!) so you might be REQUIRED to finance that new car since they are so scarce these days!
Are you trying to build an extensive credit report so you can purchase a home, get a better rate on auto insurance, buy life insurance? In that case, I’d get a second regular credit card –and make monthly purchases and pay in full and on time. I think that will do more to build your credit score than an auto loan.
