“Credit is the way of the world,” says Curtis Valentine, General Manager at America’s Car-Mart of Rogers, Ark. “Credit impacts you in more than just purchasing a car. Many things in life are built around credit and so you must consider what that is going to cost you in life. Credit impacts your ability to buy a home, rent an apartment or even finance furniture.”
Curtis advocates the most important factor in a person’s credit score is on-time payments. That’s why making punctual payments can help build a credit score. As you make your payments on time; you’re showing responsibility for your debt and your credit score will increase.
At Car-Mart, customers have a great opportunity to build, maintain or even enhance their credit, according to Curtis. “Good credit is achieved with responsible payments. That will help build your credit.”
Having a vehicle loan can help build your credit in two ways. It can strengthen your payment history, which shows your track record of paying bills on time. Plus, it can help with your credit mix, which means you have both installment loans (e.g., equal payments over a defined period) and revolving credit (e.g., credit card variable payments). A car loan is an installment loan and can, therefore, help your credit score.
“Essentially, your credit will build itself with on-time payments,” Curtis continues.
Car-Mart reports your payments to the credit bureaus
When you buy a vehicle from Car-Mart, it can build your credit because we report on-time payments to the credit bureaus such as Experian and TransUnion. In so doing, you can establish an ever-important credit history or perhaps repair past credit problems. Customers who partner with their local Car-Mart dealerships in making timely and consistent payments can watch their credit score rise significantly.
“I’m glad we can give this opportunity to our customers and report their on-time payments to the credit bureaus. I’m proud to say that customers can build their credit with Car-Mart,” says Curtis.
Credit reporting shows potential lenders what kind of borrower you tend to be. Positive credit reporting can benefit you with lower interest rates or better chances of credit approvals.
If you’re new to the credit score business, your credit score is a number that highlights your creditworthiness (e.g., probability that you will repay your debts), and that can impact your ability to borrow money. Your score is based on your credit history; paying on time can equate to a higher score.
A credit score can range from 300 to 850. The higher the score, the more financially trustworthy you are considered to be when it comes to making payments on various items. The five components of a credit score include payment history, total amount owed, length of credit history, types of credit and new credit.
Curtis recommends that you check your credit regularly to make sure your report is accurate and, also, to check your progress. The three credit bureaus – Experian, TransUnion and Equifax – also offer a free copy of your credit report once every 12 months.
Car-Mart can help with your credit
“We’ll sit down and help our customers with budgeting so they can better manage their money,” says Curtis, who advises to ‘pay your bills first.’ “When you get paid, pay your bills. What you have left over is what you have for other things.”
For Curtis, it’s gratifying to have customers come back to share they’ve been able to better their lives because they have improved their credit history.
“We’re going to take a chance on you. We believe in their ability to handle their responsibilities with their new vehicle and their payments,” Curtis concludes. “I take great pleasure in watching customers make their car payments and as a result, they’re afforded more opportunity out there in life because we have helped them build their credit.”
Bottom line be sure to stay on top of your credit and keep it in good shape, even during challenging times.
Check out our blogs about financing a vehicle at Car-Mart: