How to Finance Rims and Tires

Fancy rims and tires can improve your car's look.

No car restoration or renovation is complete until you install new rims and tires. This can be expensive, depending on the size and type you want, so you may want to finance the purchase. Look at the interest rates of any loans you are considering and ask dealers about any incentives they offer if you use one type of credit instead of another. Dealers may offer interest-free loans if you pay the balance in a certain period. Be prepared to show your driver's license, proof of residence, a recent pay stub and possibly your vehicle registration depending on the type of credit for which you apply.

Instructions

1. Check your credit report. Your credit report can give you insight on the interest rates you can expect to pay and whether creditors will consider you a good risk as a borrower. The Fair Credit Reporting Act allows you access to one free copy of your credit report every 12 months.

2. Contact dealers to see whether they offer rent-to-own rims and tires. Some online dealers offer rent-to-own packages for a small down payment to qualified buyers.

3. Check with local dealers and ask whether they have in-house credit or an arrangement with a lender to finance purchases. You may also be able to arrange a layaway agreement in which you pay for the purchase over time before you receive the rims and tires.

4. Contact your bank. Banks will often loan money quicker to customers who have accounts with them because they have much of the information they need and can verify through your current accounts your credit worthiness.

5. Compare the interest rates and payment terms for loans to select the best one for your financial situation.

Tips & Warnings

• Beware of predatory lenders who lend money at high interest rates to people with low credit scores. The Northern Arizona University states that many firms offering payday loans, title loans and check cashing are examples of predatory lenders.

References

• MSN Money: Lifetime cost of bad credit: $201,712
• Federal Trade Commission: Facts for Consumers
• Northern Arizona University: Predatory Lending: Profile & Analysis

Resources

• AnnualCreditReport.com: Request Your Free Annual Credit Report