3 Tips for Making Your Car Payment on Time Each Month
3 Tips for Making Your Car Payment on Time Each Month
Posted on December 8, 2021
There are few events more exciting in life than buying your first used car. Whether you are a young person who just got a license or someone who learned to drive later in life, browsing used cars and finding one that’s the perfect fit for your budget and lifestyle can be exhilarating. However, with car ownership comes financial responsibility, and making your payments on time can be one of the most important. We’d like to offer you a few tips that may help you pay on time each month and avoid the financial hazards that come with being past due on payments.
Divide Amounts Up Weekly
Few things are more stressful than trying to scrape together a car payment a few days before it’s due. While most lenders offer a grace period, late payments can reflect negatively on your credit score and even lower it significantly over time. To avoid this, divide your car payment by four and put away that amount each week. When the time comes to make the payment, you will have the entire amount without having to come up with it all at once.
Use In-House Financing
While using in-house financing may not give you the lowest interest rate possible, it does have many other advantages. One major convenience is being able to make payments directly at the dealership, eliminating the need for mailed-in payments or the stress of scheduled automatic debits from your bank account. Having a local payment location means you can drop it off in plenty of time.
Pay Early
Paying your car payment several days before the due date has a few advantages. It establishes a solid payment history and can help give your credit score a boost. While paying your loan the day it’s due is acceptable, paying it early may pay off in a big way in the long run.
If you’re ready to browse used cars, it’s also a good idea to consider how you plan to handle your payments. This can provide you with peace of mind and greater financial stability.