Wouldn’t it be great if you visit a car dealership, pick the car you want, write a check for the whole amount, then drive off with the car?
A lot of filthy rich people could afford that. But for most people, that is something akin to an impossible dream.
When you buy a car and you can’t pay a cash–you have two options: take out a loan from a bank, or finance the car through the dealership.
That’s just fine if your credit score is top notch–you can get really nice interest rates.
But what if your credit score is bad? Or you don’t have a credit score at all?