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Credit Education and Kids: Easy as 1, 2, 3!

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These days, parents want to give their kids the best chance at success, whether that means tutors, private school, or life coaches. Often times, however, parents don’t give their children and teenagers a comprehensive financial education or the tools and experience they will need before leaving home, and schools are sadly falling short as well in teaching basic personal finance and how credit works.

With all of this in mind, we wanted to give a few simple ways to prepare older children and teenagers for the real world and give them a head-start in building their credit score.

  1. Merit-Based Allowance – When we say “merit-based allowance,” we don’t mean that parents should pay their children for A’s and B’s on their report cards or for good behavior. Paying for grades will train children to value the grade and not value what they are actually learning, and it could encourage children to cheat. Allowances should be based on chores and responsibilities around the home, tasks that go above and beyond. This is also an opportunity to teach negotiation skills. Sit down with your child and discuss potential chores around the house (sweeping, raking leaves, washing dishes), and you can discuss with your child how much they can earn for each task. Through merit-based allowance, your child will learn to value money and understand the time and effort it takes to earn it.
  2. Credit Card – Teenagers can get a head-start building their credit score by becoming an authorized user on a parent’s credit card. As an authorized user, they can make purchases on credit card, and the account will be listed on their credit report. As long as the teenager and parent are responsible with their spending and make payments on time, the teenager can have an established credit history long before they have to apply for a credit card, auto loan, or personal loan.
  3. Secured Credit Card – If a parent feels uneasy about making their teenager an authorized user on their credit card, they can also help their teenager apply for a secured credit card through their bank. A secured credit card will only help their credit if the card will be reporting to the credit bureaus, so ask your bank before applying. Getting a secured credit card is also a great lesson in responsibility because it requires a money deposit, so your teenager can save up the money for the deposit.

Parents, we want to hear from you! What other tips do you recommend for teaching financial responsibility to your kids? Are you helping your kids and teenagers establish their credit? Leave a comment below, and let us know what you think!

Do you have poor credit or no credit? Obtaining an auto loan can be tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook, follow us on Twitter, and subscribe to us on YouTube to see our monthly specials.

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Auto Loans: Where Will I Find the Best Rates?

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Car buyers looking for the best financing deal on their next vehicle might have the answer right under their noses.

According to the National Automobile Dealers Association, dealerships across the country are meeting or beating auto loan offers from competing banks or credit unions. Today, more customers are walking into a dealership with pre-approved financing, thinking they already have the best deal.

The truth is that dealerships can almost always find a better financing deal because they send applicants’ credit applications to multiple lending institutions. By financing through the dealership, consumers can also get additional incentives like cash-back rebates or zero-percent loan offers, and since the dealership is hoping to get parts and service business from their customers in the years to come, they will work harder to get their customers a competitive deal.

For more information on how to obtain a loan, contact a sales rep at Bayside Chrysler Jeep Dodge.  We have a wide selection of new and used vehicles to look at with competitive financing offered.  Like us on Facebook and follow us on Twitter to see more financing tips and for special monthly offers.

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Auto Loans Are Easier Than Ever to Get!

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The auto loan market has turned around in just a few years.  The economy may be sluggishly making the crawl towards improvement, people with challenged credit are finding it easier and easier to come into a dealership and drive out in a car.

A few years ago, at the peak of the recession, this was nigh impossible to do.  As many dealerships will attest to, if you had bad credit the typical thought process was just don’t even bother coming in.  That attitude has changed.

Thanks to the Federal Reserve keeping interest rates down to near zero, the subprime loan market is thriving again.

The market has since been surging with people in the subprime credit category. These loans account for more than 27 percent of auto loans according to Experian.

That might seem like a red flag seeing as how all of us remember that it was this same situation with mortgages that lead to the collapse not that long ago, but analysts are quick to remind these same people that auto loans and cars work much differently than homes.  Cars are much easier to appraise and put value on.  Plus, vehicles are essential for people’s lives with work commutes, so a paying off a car typically takes priority.

Auto loan lending for subprime customers is easier to do than ever.  If you were turned down for a loan a few years ago, now is the time to take advantage of the improved market.  Contact a representative at Bayside Chrysler Jeep Dodge and find out how we can help you find that right new or used car for your lifestyle.