When it comes to credit, there are no silly questions. Read contracts, read pamphlets, ask questions and ask for clarification if you don’t understand something.

Understand Your Credit Part 3: What’s a few points between friends?

One of the most common questions we get asked is, “What is my rate?”

This is an important question because it determines what portion of your payment is going to buying your vehicle and what portion is going to make your lender more money.

This is important: You, the lender and the person who did your paperwork are the only ones that know what your rate is. The person that did the paperwork will not remember your rate in 20 minutes. If you have previously had bad credit and the only options available to you have rates in the 20s and 30s, do not be ashamed or saddened; YOU GOT APPROVED!! Next you need to make sure that the loan is open so you can pay it off whenever you want. Ensure there are no penalties for early payout and that the lender reports to the credit bureau.

The reporting to the credit bureau is key. Regardless of the rate, lenders want to see that you can make payments on time. Making those payments will improve your credit score and the history along with the improved score will allow you to trade in your vehicle and get a better rate or renegotiate your rate with your lender.

You are not locked into the full term of the loan. You can trade out and adjust your rate. Typically, if your rate was 31.9 per cent to start, after 8 to 12 months, assuming all of your credit remains good, you can trade in and anticipate a new rate of about 20 to 24 per cent.

Eight to 12 months after that, assuming all of your credit remains good, your anticipated rate would be in the area of 12 to 20 per cent; 8 to 12 months after that, assuming all of your credit remains good your anticipated rate would be in the area of 8 to 15 per cent; 8 to 12 months after that, assuming all of your credit remains good, you would now be able to negotiate the 0 to 5.99 per cent rates for Prime credit. You have now “purchased” a new credit rating by financing cars over 32 to 48 months, as opposed to the 84 months people will say you need to re-establish your credit.

Who knew that vehicles could do more than get you from point A to B?

As the only remaining locally owned and family run dealership in Port Hardy, we at E.J. Klassen Motorcade want to help our community to continue to grow and improve. We want to help you fortify your credit against future dilemmas.

Remember, this is your credit, your money and your future. There are no silly questions. Read contracts, read pamphlets. Ask questions, ask for clarification if you do not understand something. Credit is potentially a long-term commitment; knowing what you are signing up for is important.

Feel free to come by anytime and we would be happy to look at your situation and see what we can do.

Comments are closed

Just Posted

Loggers Golf Tournament returns to the links at Seven Hills Golf and Country Club

The North Island Logger’s Golf Tournament has been running for over 30 years.

Port McNeill Kids in Motion gets 300 bucks from council for swimming time at outdoor pool

Port McNeill Kids in Motion are a registered non-profit society,

Tyson’s Thoughts: Flag raising ceremony a great start to pride festivities

It was beautiful to see a group of people celebrate who they truly are and not be afraid to do so.

Blue Sox dominate Sneak Attack at Fathers Day Classic

Blue Sox got out to an early lead and kept building on it with strong hitting and quality fielding.

North Island Rising: Minority Rules – Women & Politics

Male politicians continue to out number female politicians in the North Island.

Raptors announcer credited with calming massive crowd after shooting

Matt Devlin, the Raptors’ play-by-play announcer since 2008, was praised for preventing panic from spreading

Sexting teens at risk of harms including depression, substance use: study

Use of alcohol, cigarettes and marijuana were also found to be associated with sexting

Deadline for cabinet to decide future of Trans Mountain expansion is today

International Trade Minister Jim Carr described the decision as ‘very significant’

Victoria mom describes finding son ‘gone’ on first day of coroners inquest into overdose death

Resulting recommendations could change handling of youth records amidst the overdose crisis

Dash-cam video in trial of accused cop killer shows man with a gun

Footage is shown at trial of Oscar Arfmann, charged with killing Const. John Davidson of Abbotsford

Suicide confirmed in case of B.C. father who’d been missing for months

2018 disappearance sparked massive search for Ben Kilmer

Eight U.S. senators write to John Horgan over B.C. mining pollution

The dispute stems from Teck Resources’ coal mines in B.C.’s Elk Valley

Threats charge against Surrey’s Jaspal Atwal stayed

Atwal, 64, was at centre of controversy in 2018 over his attendance at prime minister’s reception in India

Anti-vaxxer Robert F. Kennedy Jr. to speak in Surrey

He’s keynote speaker at Surrey Environment and Business Awards luncheon by Surrey Board of Trade Sept. 17

Most Read