Considering purchasing a vehicle using cash or financing? If you've hit a few bumps in the road, you'll want to consider financing your next vehicle, and here's why:

The chance of an auto loan impacting your credit report is high. An active auto loan trade-line increases your credit history and credit capacity. Provided you don't have any missed or late payments, this increase can help to build your score and set you on the right track. Wondering what to do with your cash? Use your cash as a down payment (hint hint, lenders love this!) to help decrease your bi-weekly or monthly payment.

You can purchase a beautiful, reliable vehicle that best suits your personal taste and day-to-day routine, while using it as a springboard to build your credit score back up.

This is the step most people know, but they may not realize just how much of an impact it has on their overall credit score.

Paying bills on time, even the minimum amount, can prevent a red flag against your credit score, and keep track of their bill dates, and that can be a real problem when it comes to paying bills on time.

Set up reminders on your calendar, have your smartphone alert you with notifications, or consider setting up preauthorized payments in order to make sure you never miss a payment. This creates a positive payment pattern that reflects well on you.

And, finally, there's no substitute for learning how to manage your money properly. Having a car loan will help instill that discipline from day one.

This kind of high-level responsibility will aid you in the future when it's time to purchase that house, or open your new business.