Can Renting Instead of Owning A Car Help Improve Your Credit Standing?

Many people find that purchasing a car is difficult due to concerns about their creditworthiness.  And even if they can get the credit, they may find the amount of the loan payments will take a significant chunk out of their regular income.  Car payments can be so great as to consume a major portion of the money they earn.  While persons with good credit rating find they are able to get major things like appliances and home improvements, done, those with poorer credit find it more difficult to get the loan needed to get a decent family car.

 

Often a poor credit rating results from living too close to the financial edge.  Though you know what you can afford, you aren’t able to cover unexpected expenses.  So when you have to get something immediately you find yourself relying upon a credit card or high-interest loan.  That means repaying the loan at interest rates that may amount to a third of the face amount of the loan.  When other expenses are included your cost of living is stretched beyond your means.

 

One way to rectify that situation is by eliminating the costs of auto ownership.  This may sound sacrilegious but in fact, unless you need a car for everyday living, you can often do better using public transportation.  You rent a car from Sixt when you need it.  Using a Groupon can make the cost of rental for family trips or business ventures a better option.  And you save the costs of regular car payment, maintenance, upkeep and repair and insurance.  Many people are opting to rent vehicles using Groupon coupons or promo codes for excellent rates, rather than paying auto ownership and operating expenses that can total nearly a third of monthly expenses.  Calculate it yourself – how much does your car ownership expenses take out of your monthly living expenses?  Remember how they say you should set aside at least 25% of your take home pay for your home rent or mortgage.  Should the cost of your car be more than that of the place where you live?  Or can you use a rented vehicle and save that amount for other uses.  It is an option that might be worthy of consideration.