What a lot of people do is buy a car they can afford with cash-on-hand.  It often leads to buying a second hand vehicle that is older, but gets you from point 'A' to point 'B'.  It should be commendable, money gurus and maybe even your parents would be proud.  But if you have no other loans what is it doing to your reputation, your credit score? Nothing!  It does nothing to show that you are capable of managing money.  Therefore, when you really need to borrow money for a house or an emergency, then you're stuck.
<blockquote>DO NOT SPEND MORE THAN YOUR INCOME.</blockquote>
Spending more than what you take home is what gets you in trouble, not the credit cards or loans.  You must make more than you spend whether you're using a bank account or credit cards.  And your credit cards are to be paid IN FULL within the grace period so you're not charged interest.  There are only three exceptions to this rule:
<ol>
	<li>Guaranteed Investment - an investment that will bring you a greater monthly return than your minimum payment on the loan.</li>
	<li>House / Mortgage - not many people have $300k+ handy to buy a home, and we all have to live somewhere.  If your choice is to rent or make mortgage payments, then mortgage payments wins hands down.  Unless you negotiated a <em>really</em> good 100 year lease with your landlord, there are greater benefits for long-term goals to use a mortgage and buy a home.</li>
	<li>Benefits Are Greater Than The Cost -  There are very few times where the benefits will trump rules 1 and 2.  You need to really analyze the situation  and if the answer is yes then you need to make plans as to how you will pay it back.</li>
</ol>
If you have credit issues (but have a stable income), then buying a car will fall under #3.  Even if you have cash on hand to buy an older vehicle, <strong>keep that money</strong> in a savings account for emergencies.  You are compounding your efforts, establishing a history of repayment, and saving money.  Both are beneficial to building good a credit history.  Car financing is the easiest loan for people with credit issues to get because there's something of value to place the lien against and it can be easily reposed, should things not work out.

<strong>"But they will charge a high interest rate!"</strong> you're saying. Worst case scenario, yes they will.  It could be as<strong> high as 30%, over 5 years</strong> that's approximately $10k of the life of the loan.  But ask yourself, how would your credit be today if you did this 5 years ago?  Are you able to buy a house now?  How much would a high risk mortgage cost you for 2-5 years?  What if there was an emergency, able to get the money to handle it?  Are the <strong>"Benefits Greater Than The Cost"</strong> when you look long term?
<blockquote>SAVE THOUSANDS OF DOLLARS!</blockquote>
Through our referred vendor you will pay the high interest for ONLY <del>1 Year</del> 10 MONTHS!  Saving you thousands of dollars, improving your credit, and making options available to you in the future. The vendor has agreed to offer you $200 cash-back for going through our site.  They are pretty good, and this is how it works, a) they will get you the lowest interest rate possible based on your risk assessment with a recognized institution, often with one of the main banks, b) they will get you a reliable car that fits your budget, just don't choose one you will fall in love with it, c) make your payments "on time" for 1 year, d) turn in the car and get a new one with the a much lower interest rate, usually 10%.

The reason the first car is turned back in is because the high interest contract has to be broken in order for you to take advantage of the new rate you're entitled to.  The only way to do this is to trade it in.  That's why you shouldn't get attached, it makes it harder to bring it back.

If you are interested in buying a car or have more questions fill out the form and we will get someone to contact you within 12 hours.

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