GreenPath Debt Solutions is a Michigan-based non-profit organization dedicated to promoting financial education and consumer counseling. One of the company's primary messages is the importance of learning how to use credit cards and other forms of debt in a responsible, financially sound manner. They also educate the public on managing existing debt. Spending money is unavoidable, but there are certainly ways to minimize expenses while maximizing value, both of which can lead to a healthier debt load.
In response to the release of May sales data showing an increase in consumer demand for new vehicles, GreenPath has put out a guide to help car buyers make sound decisions when shopping for a new car or used car. One way to reduce costs by avoiding higher interest rates is to assess your credit score before starting to shop, and make any corrections in your credit report sooner rather than later. The group points out that with the new 2013 models coming out this fall, now is the time to start boosting your credit scores.
When looking at your credit score and considering options to increase your ratings, the non-profit urges consumers to make careful and educated choices when opening or closing accounts. Older accounts demonstrate a long-standing credit relationship with the issuer, and can actually help your score, even if there is an outstanding balance. Similarly, while opening new accounts may help establish a good credit history that process takes time. Too many new accounts can cause your score to plummet. And closing accounts with zero balances can throw off your debt to credit ratio as well.
The non-profit offers multiple counseling and educational services to the public, and urges consumers to make smart decisions and to take charge of their financial lives. Buying a new car comes with a new debt obligation, and smart consumers understand that spending some time on credit management now means spending less money on interest rates when it's time to hit the showroom floor.
Source: MarketWatch, GreenPath Debt Solutions Reminds Buyers To Check Their Credit Report Before Auto Shopping," June 1, 2012