If rebuilding your credit score is one of your New Year’s resolutions, then opting to get a car by means of a rent-to-own finance option from Earn-a-Car can help you.
Rent-to-Own and Manage your Credit
It’s no secret that vehicle finance is expensive, especially if a high interest rate is allocated to the loan. Furthermore, if loan interest rates increase, you will need to pay more for your car each month, which for many people may be unaffordable and increases the risk of maintaining a good credit score. The rent-to-own finance option from Earn-a-Car can help you manage your credit and avoid some risks associated with traditional vehicle financing.
How Does Rent-to-Own Help You to Manage Your Credit?
Here are just a few ways in which renting-to-own your car will help you to manage your credit:
Bypass Credit Ratings and Unaffordable Interest Rates
If you have a low credit rating (also known as being blacklisted with the credit bureau) you might find it very difficult to obtain vehicle finance from a bank. If you are successful, the interest rate might be extremely high, thereby drastically increasing the amount you have to pay back and extending the length of time it will take to repay the loan. With the rent-to-own option, you won’t be paying interest, you simply earn your car month-to-month.
No Additional Debt
With Earn-a-Car, you’re not taking on additional debt in the form of a loan to finance your car. Instead, you are renting a car and earning monthly cash backs to pay it off. You don’t need to have a credit history to earn a car with the rent-to-own finance option either.
Provides you with your own Transport
The rent-to-own option helps you to take control of your future by not only supplying a car that is in good condition, but also puts you in a position to secure your monthly car repayments over a long period of time, by not having the risk of increased interest rates. An added advantage is that you have access to your own transport, without having to pay for public transport or having to rely on car pools that can be unreliable.
Freedom to Choose in Changing Financial Circumstances
If your financial situation changes, you have the option to trade down to a model that is more affordable or to trade up. If times get really tough, you can cancel your agreement with Earn-a-Car by giving one months notice. This way, your credit rating is not jeapordised even more and you won’t have the added stress of not being able to repay a loan.