Becoming a first time car buyer is an exciting experience, but oftentimes the only thing standing in the way between you and your dream car is finance. Unfortunately, life’s greatest paradox is that you need a good credit reference to get financing, but you also need access to financing in order to develop a good credit reference. If you find yourself lost in this absurdity then never fear, renting-to-own allows you to step out of this limitation.
How does a credit rating affect me?
A credit rating is a long list of every amount of money that you have borrowed in the past, as well as how well you have kept up to date with the repayments of that debt. It’s simple, the more money you borrow and the more regularly you pay it back then the more likely you are to be granted further loans. This is all very well, but if you are a new buyer or blacklisted (with a bad credit record) then you may find it difficult to gain a loan from a bank or dealership, owing to your lack of a credit rating.
Step out of the Limitations
Banks are reluctant to grant loans to people with bad credit scores or to people with no credit scores at all, as there is no guarantee that you will be reliable when it comes to paying back the monthly instalments. If you’re in this unfortunate position then the only way to develop a good credit reference would be to get a loan and keep up with the monthly repayments, but without gaining access to a loan this seems impossible. However, rent-to-own cars allow you the freedom to drive your own car and develop this credit rating.
The Advantage of Rent-to-Buy Cars
Renting a car will provide you with greater flexibility over your life, and once the rental period is over you will be able to decide whether or not you would like to own the car. This will enable you to have the freedom of your own car, thereby empowering you to start your life and gain the credit reference that you will need later on in life.