Frequently Asked Questions

Have any credit questions?

We have the answers. That’s because we possess the experience needed to help you get the best financing possible . So we have povided you with some of the answers that you will need so buying your next vehicle will be an easy and rewarding experience.

Understanding Credit

Understanding credit can put driving a new or used car or truck within your reach.

How can I determine what vehicle fits my budget?

Take your monthly income after taxes and deduct your monthly expenses for fixed items like rent or mortgage payments, utilities and insurance. Then subtract your flexible items such as food, clothing, credit card payments and recreation. You can use the amount that is left over to help determine what vehicle you can afford.

How can I reduce my monthly vehicle payments?

One option is to save as much money as you can for the down payment before you finance your vehicle. After all, the more you put down on a new vehicle, the lower your monthly payment will be. Another option is to trade in your current vehicle. In some cases, your old vehicle will take care of your new vehicle’s down payment.

Why do I need credit?

Building a good credit foundation is essential to purchasing cars, homes and many of the things you want. Without it, you’re considered a credit risk. Also, you often need credit in the form of a credit card to reserve and rent such things as automobiles and hotel rooms. The convenience of shopping online or by phone is another reason to obtain a credit card.

How do I establish credit?

If you don’t currently have a credit card, the first step is to open a savings and chequing account at your local bank or credit union. Such accounts are often taken into consideration by lending institutions as evidence that you have money and know how to manage it.

Will credit cards help build my credit reputation?

Yes, as long as they are used properly. This can be accomplished by establishing credit at a department store or by applying for a major credit card. Even if you have enough money to pay for the entire purchase, you can begin to build your credit reputation by charging the item. In most cases you will not incur finance charges if you pay the entire balance by the due date on your statement.

How do I maintain good credit?

Having a realistic budget, keeping a moderate credit limit and paying balances every month are the keys to good credit. When you’re starting out, credit companies will not give you a large credit limit, but you still have to be careful. Don’t extend your credit too far if you can’t make the payments.

How much debt should I have?

Many credit counselors advise that monthly installment debt payments, such as car or school loans and credit card payments (not including a home mortgage), should not total more than 20 percent of monthly income. For example, if your monthly take-home pay is $1,000, you should be devoting no more than $200 a month to credit payments.