Tag Archives: recession

Consumer Credit Rises Higher than Expected

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February turned out to be a better month than expected in regards to credit. A report from the Federal Reserve shows that consumer credit increased by 16.49 billion to 3.13 trillion dollars. This figured caused them to revise their January numbers from $13.80 billion to 13.70 billion. Economists were expecting consumer credit in February to rise only by $14.09 billion.

The numbers consistently show that consumers are coming back into the auto market, a market that just a few short years ago was in freefall. Since the recovery, many drivers have been either forced to purchase a new vehicle to replace older ones or have finally gotten to a position where they are able to finance a new and necessary vehicle. There is also the fact that many lenders have eased up since the recession and have been lending more and more frequently to lower income consumers.

As these figures show, it is the best time to find good financing for a new or used vehicle. If you’re one such person who needs an auto loan, be sure to contact a sales rep at Bayside Chrysler Jeep Dodge. We’ll work with you to secure the right loan to suit your lifestyle. Be sure to like us on Facebook and to follow us on Twitter for more specials and offers.

Building Good Credit at Any Age

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ID-10086809Getting that golden FICO credit score of 750 to 850 is difficult at any age, but for consumers that start later in life, it can seem impossible or even pointless to try. The truth is that working for a better credit score is beneficial, no matter how old or young you are.

Many consumers mistakenly believe that after a certain age, they really don’t need to worry about their credit. They have paid off their mortgage and car loan, and they either don’t have credit cards or closed their credit card accounts long ago. What reason would they need to take out a loan or need access to credit anyways?

Unfortunately, this kind of thinking usually leads to disastrous inaction. There are many reasons why a consumer could need a loan or available credit, and to get a loan, consumers need a good credit history and by extension, a good credit score. A medical emergency, sickness in the family, temporary job loss, or another unforeseen emergency can happen to anyone. Even if none of these circumstances occur, most people want to travel in their retirement or rent out a condo in a warmer climate. Travel credit cards will require a good or excellent credit score, and renting a condo will usually require a credit check.

There are a few ways that consumers at any age can ensure a solid credit score. First, do not close old credit card accounts. As long as these accounts are open and active, they will report to Equifax, Experian, and TransUnion. Closing these accounts shortens a credit history and lowers the amount of available credit. This raises the overall credit utilization and lowers the FICO score. Second, pay all loans and lines of credit on time and keep the balances low. Payment history makes up a huge part of a credit score, so consumers who pay on time will benefit while consumers who miss payments will end up with a lower score. Finally, consumers who don’t have many accounts on their credit report can boost their score by opening a new line of credit, like an auto loan, and making their payments on time. This action will also diversify the type of credit on the report.

Obtaining an auto loan without a credit history or troubled 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.

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Car Dealerships and the Incentive for Low Interest Rates

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Recent statements from the Consumer Financial Protection Bureau have left car buyers worried that their local dealership will intentionally set them up with a high interest rate.

In a recent commentary for Automotive News, Jim Henry explained why that is simply not the case. Auto dealers are actually more motivated to get their customers a lower interest rate than, for example, a mortgage broker because a mortgage broker will only make money on the mortgage. When it comes to an auto loan, a dealership is set to make money, even if they take a lower interest rate, because the dealership will make money on the service of the car.

Besides this argument, there is great availability of low-interest auto loans to consumers, even those with bad credit or no established credit history. Car buyers can negotiate lower monthly payments, lower interest rates, longer loan terms, or whatever they need for their particular credit and financial situation. All it takes is a car buyer sitting down with a dealership’s finance department and exploring their options.

Obtaining an auto loan with bad credit or without a credit history can be difficult, 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 artemisphoto / FreeDigitalPhotos.net