Here’s a link to an article about “cash for clunkers,” another government-sponsored program designed to improve another depressed market:

http://www.autocreditexpress.com/blog/2009/06/24/cars-clunkers-and-bad-credit-car-loans/

For once, Veracity Credit Consultants would like to simplify on a theme instead of expand upon it. As the article points out, these government-mandated consumer boosts aren’t always practical.

An even more important question for bad credit car loan customers is how many of them are in the market for a new car? Even if they are driving a car that meets these requirements, what kind of new car are they going to qualify for? With the high cost of credit, even a $4,500 down payment (along with manufacturer incentives) will keep the list of affordable vehicles rather short.

Another thing to consider is that although the additional cash will put bad credit car buyers in a better equity position in their new car, subprime lenders will still apply the same lending criteria. This means that buyers will still have to come to the table with a cash down payment and one that is fairly close to, if not the same as, current requirements.

Veracity suggests you beware of putting the horse in front of the cart (or, the car, as the case may be) in this situation. The point this excerpt of the article makes is that throwing cash at the problem won’t solve the issue of high rates. In fact, we would argue that the only method to dealing with high rates is a better credit score. And that’s where credit repair comes in.

Before purchasing a car, or even more so a home, Veracity suggests you look at your options and your immediate needs. If you are in a good place financially insomuch as you’re paying your bills on time and keeping up with payments, we suggest you first pull your credit reports and see what your current credit situation is.

If you have credit report, with errors and inaccuracies, that is causing you to have a low credit score, you may want to consider six to 12 months of credit repair with a reputable credit repair service before purchasing a car.

Patience is a virtue when it comes to credit matters. At Veracity we like to remind our clients that credit repair takes time and determination. Your credit didn’t get to the point it is overnight, and it can’t be optimized immediately, either. So when it comes to major purchases, be patient and make sure you’ve optimized your credit situation in order to save yourself thousands of dollars in the longer run.