week7assignment - This can cause someone to buy more...

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Determining whether credit should be used to make a large purchase usually depends on the interest rate. Shopping around through different institutions can sometimes bring a better interest rate on the loan. A difference in a few percentage points can save a consumer hundreds of dollars over the course of the loan. This is why a large purchase is best looked over carefully before buying the item. No one likes to pay more for a product than is needed. One must determine what rate best fits their situation when making a purchase. When buying a new or used car, interest rates can determine which vehicle you choose. Some car dealerships offer no interest loans for people with approved credit.
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Unformatted text preview: This can cause someone to buy more vehicle than what can be afforded. When a vehicle cost $30,000 dollars with no interest, it is still $30,000 dollars. Dealerships bank off their advertisement of the interest free loans, hoping to sell new cars to people that has a good credit base. Interest rates on used cars can cause you to pay more for a vehicle than what it is worth. Depending on your credit score greatly affects what interest bracket you fall under. When thousands of dollars are involved, interest rates can save or cost an individual a lot of money....
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