Remember, Financing Can Hurt Your Credit

Here are some ways that financing can hurt your credit:

1. Repossession or voluntary repossession-credit can be severely damaged if you have a repossession on your credit.

2. Theft- if you finance a vehicle worth less than you owe, you will owe the bank the difference unless you carry gap insurance.

3. Accident- Pretty much the the same applies here as with theft.

4. Depreciation- Cars and trucks depreciate substantially. When you are done paying for a $15,000.00 vehicle, you are paying the same amount each month for a vehicle that has much less value than when you purchased it.

5. Repairs- No matter how well you take care of your vehicle there will be breakdowns and repairs that will cost a substantial amount. If you still owe on your vehicle you will still have that same obligation along with the costs.