Tag Archives: sub prime

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

Posted on by
Reply

ID-100155104

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

Auto Loans: Where Will I Find the Best Rates?

Posted on by
Reply

ID-100125045

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.

Image courtesy of renjith krishnan / FreeDigitalPhotos.net

The Cars That Sub-Prime Borrowers Are Buying

Posted on by
Reply

Dodge AvengersQuick question: what cars are sub-prime borrowers buying? The answer may be surprising.

Carfinance.com wanted to know this very answer. Rather than following my example and randomly asking the internet, they put together data between October 2012 and March 2013. What the conclusion they found in that window of time was that the people who make their auto purchase as sub-prime borrowers are buying completely different cars than those in the top-selling slots.

The top three selling midsized sedans in the US is the Toyota Camry, Honda Accord, and the Nissan Altima. These three didn’t even break the top ten for sub-prime. So what was on the list then?

Topping it was the Dodge Avenger followed by the Kia Forte and Kia Optima in second and third respectfully. It’s clear from looking at the full list of the top ten that people suffering from credit issues and other financial complications are looking for small or midsized sedans. At least in the new category they are.

Used tells a different story. The top seller in that time period was the Ram 1500. The Dodge Charger came in at the fourth slot. A wide range of vehicles are on the list, but trucks were more numerous than on the new list.

Are you having credit issues and are looking to purchase a new or used vehicle, such as the Avenger or the 1500? Contact us at Bayside Chrysler Jeep Dodge. We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.