Tag Archives: credit score

What to Do When Your Loan is Denied

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ID-10098880This was a write-in question for Fox Business for some advice on getting a loan:

Dear Debt Adviser,
I applied for a home equity line of credit with my mortgage lender. I was denied, in part, because I’ve been late occasionally on my mortgage payments. I now have a credit score of 670 and a high-interest auto loan for $5,400 that I’d like to pay off. Do you have any financial advice for someone like me? Please help!
— Sherry

The response isn’t just about home equity. It’s about all kinds of loans, auto loans included.

The writer for the response piece starts out by labeling the most obvious problem the person ran into when they applied for for another loan. The person was denied because being late on their mortgage payments marked them as high-risk borrower. Their credit score was also dragged down because of that risk. The final reason, using the same collateral from the same lender.

That’s the bad news. Thanks to a weaker credit score and being high-risk due to late payments meant that the application was sent back denied. Where does someone go from there, though? Just because you were denied doesn’t mean it’s over. It just means that you need to take a different approach to getting the loan you need.

Start by doing what you can to raise your credit score. Get your current loans paid off, on time or early if you can manage. Don’t get any new credit unless it’s necessary. You’ll want to keep your balances as low as possible. If you can, make a rule of not getting another loan until everything you currently owe is paid off every month.

In order to achieve this goal, you need to set yourself up to succeed. Without a solid plan that you can commit to, it’s very likely you won’t be able to pull it off. Put together a spending plan that manages your current bills. Make sure a portion of your monthly budget is dedicated to setting some money aside for saving, which will help you with wiggle room should any unexpected expenses come up.

If you follow these guidelines, you’re going to see an improvement in your score. It’ll take some time and effort, but in the long-run, you’ll be able to get the loans you need.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Know Your Credit Score: First Rule of Auto Purchasing

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ID-10084232

What’s the first thing you do before you head into the dealership to purchase a vehicle?

That’s the question that Gerri Detweiler wrote on a post for Credit.com.  She found herself in a position many car buyers have been in of late.  Due to the recession, car owners are holding onto their used vehicles for longer thus driving up the price of pre-owned due to scarcity.  She was forced to look into the new market and wasn’t entirely certain how to start.  Thankfully, her husband had the experience and guided her into the process.

She has provided some solid advice on what to do when new to the market and the questions you should ask yourself before even setting foot in the dealership.  The very first one you should ask is the one that’s not the most obvious.  While certainly things you should know, such as knowing what you can afford, checking with Kelley Blue Book to estimate your trade-in value, or going through Edmunds and other report sites to see the best car for you, the one that you should know first is your credit score.

For whatever reason, this one gets lost in the mix.  Not knowing your credit score is the first step to disaster when shopping for a new vehicle.  Gerri Detweiler found a great quote from Phil Reed who used to work for Edmunds in which he said, “So what happens is they go directly to the dealership without checking their credit scores – which is not a good thing to do – and their attitude is “get me done.”

Knowledge is always power when it comes to negotiating with interest rates.  By knowing your credit score, you’re already one step ahead of the bunch.

Looking for an auto loan?  Check out Bayside Chrysler Jeep Dodge in the Queens New York area.  We offer quality customer service to all who come through the door.  Works with us and you’ll see why our slogan is “We love to say yes!”  Follow us on Facebook and on Twitter for more tips and advice and our monthly specials!

How to Spot ID Theft on Your Credit Report

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ID-10060832An important aspect of qualifying for an auto loan, even with troubled credit, is your credit score.  One of the best ways an applicant can prepare for the process is to go over their report and ensure that everything listed is correct.  Any number of things can work against you, which is why everyone always recommends a look over before making any major financial decisions.  Be on the lookout for anything that doesn’t match up with your own records.  If you see something wrong, get it taken care of.  Another thing to be aware of if you see something unfamiliar on your credit report is that you may be a victim of identity theft.

TransUnion has some tips to help make sure you can avoid being a victim.  There are certain signs in your report that may point to fraud.  Here’s what you need to keep an eye out for:

  • If you see any accounts, payment histories, addresses, inquires, or Social Security Numbers that you don’t recognize.
  • If an unknown creditor tells you they got an application with your name and Social Security on it that you were unaware of.
  • If you’re getting calls or letters informing you of being approved or denied for credit but never applied.
  • If you have gotten credit card, utility, or telephone statements that are in your name but you never applied.
  • If you notice that your mail, including credit card statements, is not always being delivered to you.
  • If there are credit card purchases you don’t recognize.
  • If a collection agency contacts you about collecting on an account you never opened.

These are all important signs that someone has gotten ahold of your information and are using it for malicious purposes.  Make sure you are aware so that you can work to protect yourself.  Don’t let a thief drag down your credit and along with it the ability to apply for credit.

If you’re in the market for a vehicle then contact us at Bayside Chrysler Jeep Dodge and find out how we can help.  We love to say yes!  Browse our new and pre-owned inventory online.  Like us on Facebook and follow us on Twitter for more news and monthly offers.