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When you have poor credit rating, you might have to be prepared to pay higher down payments and maybe higher monthly dues. But be prepared in all cases to be paying higher rates because of the poor credit rating!

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Q: How it is it possible to finance a car if a poor credit rating is making it difficult?
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No. But what will be charged on a late fee, will be reflected on something known as your your finance charges. Finance charges will go up if you are late making a payment on your credit card.


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Does using finance companies instead of banks or mortgage companies adversely affect your credit score?

Your credit score could be adversely affected by using 2nd tier lending sources, such as finance companies for loans. If you successfully repay the loan and it reflects as a positive account, it will not generally reduce your score, but it may not provide much of a boost either. If you do miss a payment, it substantially reduces your score. Using finance companies is a signal to credit bureaus that you are either unable to obtain a traditional mainstream loan or that you are making a bad choice. Your credit scores will generally drop when obtaining finance loans.


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How often should you get your credit report?

This is really a personal decision, but it makes sense to check your credit report prior to making a large purchase that you intend to finance. For example, buying a car or a home, are examples of big purchases in which you would want to check your credit well in advance of the purchase to make sure you have good credit.


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How does credit card debt effect credit scores?

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