Car Loan Leads to Lesson in Finances
Renee got by for years with driving hand-me-down cars that were always breaking down and inconveniencing her. She finally began shopping at dealerships for a new car when the transmission on her latest clunker died.
The mother of three has a secure job as a correctional officer, but her credit was poor. Car dealers kept hampering her efforts to purchase a car when they’d pull her credit report and then strap an interest rate of 20 percent or higher to a loan offer. With limited knowledge of car financing, Renee quickly became frustrated. That’s when she turned to the Board of Child Care’s Ways to Work car loan program.
Ways to Work staff not only help clients find reliable cars, they guide applicants through the loan application process and counsel them on budgeting, credit ratings and financial planning.
Renee learned how to improve her credit rating by consistently making payments on her outstanding bills. She was eventually approved for a car loan with an interest rate of less than 10 percent, keeping the monthly payments on her 1999 Oldsmobile Alero purchased through Ways to Work at $181.
“Without my vehicle, there’s a lot I wouldn’t be able to do,” Renee says.
The new car has helped her take her children to and from afterschool activities and field trips. She also feels secure knowing she can get her 9-year-old daughter, who suffers from chronic asthma, to the doctor in case of a medical emergency.
And with her new financial knowledge, Renee says she is on track to paying off her car loan early and buying a home.
Learn more about our Ways to Work Program.
