Tag Archives: credit card

Good Credit Habits

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We talk so much about what to do when you have bad credit, we don’t spend any time on what to do once you’ve achieved good credit.  You’ve fought your way back, your credit rating is on the up.  What do you do to either maintain it?  Here is some behaviors to keep in mind to keep that credit rating good.

  • Know Your Credit Score:

Yes, even with good credit, this is still important.  Don’t risk sliding back into bad behaviors, you can keep yourself in good standing by making certain that your credit report remains clear and good of any false reporting.  Errors happen, and you should get on top of it asap so it doesn’t have a negative impact.

  • Keep the Credit Card Companies Happy:

This is a two-parter.  First up, a method of doing this is by sticking to a ratio of 30 percent of your credit allotment.  Every month, make it a habit of only using your credit card(s) till the 30 percent mark and then back off.  People who consistently go over this part tend to get the credit card companies nervous.

Second, make sure that you use your credit card.  This may seem like talking out of both sides of the mouth, but the key word in this is to use the credit card and maintain it without going over 30 percent.  Being consistent with that ratio and paying it off every month will keep the credit card companies happy.

If you need help with purchasing a new or used vehicle, be sure to contact us at Bayside Chrysler Jeep Dodge. If you need further assistance in finding financing for a new vehicle on bad credit, contact our financing department.  We love to say yes, you’re approved!   Be sure to like Bayside on Facebook, following on Twitter, or subscribing on YouTube.

Getting a Top Credit Score in 4 Simple Steps

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ID-100172171A recent article from US News & World Report points to four common habits of consumers with FICO credit scores of 785 or higher, the top bracket of credit scores. What set these consumers apart from the rest? Read on to find out.

First, these consumers did not miss their payment due dates. 35 percent of an overall credit score is based on payment history, and after missing a payment, a consumer’s credit score will automatically drop. Making payments on time is one of the quickest and most substantial ways to improve a credit score.

Second, they try to keep credit card balances below 20 percent or 10 percent if possible. The key is to keep the card active while maintaining a low credit utilization across the board. Consumers who are maxing out all of their credit cards appear riskier to banks and lending institutions.

Third, they do not close old credit card accounts. Credit scores are partially calculated based on how long a consumer has been utilizing credit, and if the credit card account is closed, the card will stop reporting to the credit bureaus. For example, let’s say that Jill has a credit card that has been active for 18 years, a car loan that she has been paying for 1 year, and a store credit card that she just opened a few months ago. If she closes her credit card account, her credit report will state that her credit history only goes back 1 year to when she got her car loan, and her overall score will suffer tremendously.

Fourth, they do not apply for a lot of new credit in a short amount of time. These consumers aren’t afraid to diversify the type of credit on their report, but they also are not applying for every credit card offer that arrives in the mail. Applying for a lot of credit cards or loans in only a few months is a red flag to lenders, and it can hurt a consumer’s credit score.

How are you doing on these four habits? 2 out of 4? 3 out of 4? Leave a comment below, and let us know.

Obtaining an auto loan without a credit history is 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 and to follow us on Twitter to see our monthly specials.

Image courtesy of stockimages / FreeDigitalPhotos.net

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.

Image courtesy of stockimages / FreeDigitalPhotos.net