Tag Archives: financing

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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Getting an Auto Loan With No Credit History

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We have spoken at length in past articles about the importance of a credit history. So much rides on what is and isn’t on that list. What about the people who do not have a robust credit history? These individuals need cars too, so what are they to do when it comes time to buy but the credit history is lacking. Here are a few tips to help people who find themselves in that situation.

First, simply acknowledge that obtaining a car loan without a credit history is achievable but somewhat difficult. It will mean going the extra mile where someone else may not have to. Do not let yourself get discouraged.

Now that the pep talk is over, it’s time to do what needs to be done to get that auto loan. The first way to make life easier is to accumulate a larger down payment. The more money one can have to put towards the purchase of a vehicle, the easier the process is. It’s the best way to get the necessary loan as well as a better interest rate. Having a larger down payment tells the dealership that you are capable of producing the funding to pay back a loan.

If that is not an option, keep in mind that dealerships will go beyond a credit history when looking at applicants. The lender needs to know if the applicant is able to pay back the loan they are about to give. If they can’t get that information from a credit history, then they’ll look in other places. What needs to be brought in to help is documents such as a bank statement or recurring bills such as utility or phone bills. These show that you have monthly payment obligations that are being paid off. Another piece of information that can really help is proof of employment. Showing that you have steady work is an indicator of someone able to pay off a monthly loan.

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 renjith / FreeDigitalPhotos.net