Now that we're into the New Year, it's time to start filing those tax returns. And, if you're expecting a tax refund, you might want to start thinking about what plans you have for that money.
Remember that you earned this money by working hard all year long, so don't throw it away. Sure, it may be tempting to splurge on that new 70 inch Smart TV that has been drawing your eye for the last few months, but consider this: Are there more pressing matters that could be solved with that tax refund?
Addressing the Issues at Hand
If you are dealing with damaged credit, you may want to use your upcoming tax refund to tackle any of the following issues you may be dealing with:
- Get your credit back on track
If you have had any lingering debts, use this financial opportunity to get current on your past due accounts, or, if possible, pay them off entirely. Lenders want to see your credit usage stay at or below 30% of all your available credit, so reducing or eliminating your balances will do wonders for your credit rating, ensuring that you increase your chances for loan approval with prime interest rates in the future, as long as you keep up the good work.
- Down payment on a car purchase
If you are in need of a car, the best thing you can do with your refund is put it towards a car purchase. And, if you have bad credit, it could just be the difference between a loan denial or approval. Additionally, a down payment might even allow you to have instant equity in the car, especially if you buy a certified pre-owned (CPO) vehicle. New vehicles lose at least 20% of their value in the first year of ownership, whereas the depreciation of a used vehicle is lower per year, typically around 10 or 11 percent. And, if you couple that tax refund cash with a trade in, you could very well not only have equity in your car purchase, but also significantly reduce the amount of money you need to borrow for your auto loan.
Find the Dealer You Need
If you're ready to make a car purchase, but have a troubled credit history and are having difficulty finding a car dealer that can handle your unique credit situation, Drivers Lane is here to help. We have a nationwide network of dealers that work with qualified subprime lenders that are ready to do everything possible to get you into the vehicle you need.
Complete our fast, secure and obligation-free online application today, and we will connect you with the dealer nearest your local area that can help you within 48 hours. Don't wait any longer, get back on the road today.