How to Keep Good Car Credit and Make Payments on Time
Maintaining good car credit has a huge impact on one’s overall credit score. Any large payments like car payments and monthly or mortgage payments have the biggest impact on your credit. Much more of an impact than a credit card. With that being said, to maintain good car credit you MUST make your payments on time.
We know things come up and sometimes making the payments is hard. However, as it is very important we want to give you some advice! Here are five tips to pay your car payment on time each month:
- Budget – Before you even purchase or lease your vehicle, it is important to sit down and make a budget. Calculate your monthly income – the amount you actually take home after taxes and other deductions. This is the amount from which you are going to subtract all your expenses. This budget should include all of your payments each month like credit card bills, mortgage or rent, gas, car insurance, groceries and any others. Once you subtract all your monthly expenses, you will see how much you have left to spend on a car payment.
- Keep track of finances – After you’ve purchased or leased your vehicle, you need to keep track of your finances to make sure your other expenses don’t increase and you are saving enough money for your payment each month. If you are not so good at doing this, there are apps for that! A couple of our favorites include BillGuard and Penny, but there are several out there!
- Phone reminder and/or google calendar – These are two great ways to remind you that your payment is coming up each month. Life gets busy and even those with the best memory forget things from time to time. Doing this will make it so there is no forgetting.
- Consistency – Consistency is another great way to make sure you get you payment in on time each month. Pay the bill on the same day and around the same time each month. That way it will become a habit and harder to forget.
- Automatic payments – When all else fails, you can always sign up for automatic payments. This way, you don’t even need to think about the car payment, it will always be taken out on the first of the month (or whatever you set it up for). Just be sure to have enough money in your account each month!