3 Credit Myths Debunked


The hardest problem for anyone looking to purchase a vehicle is knowing where to start. It typically begins long before stepping foot in the dealership. One of the most difficult things to understand is credit. There are many myths that are thought of concerning credit. With the help of a piece on UsNews, though, we’ll try to break down some of those myths to make the process a little easier.

The first myth is only having one credit score. It certainly would be nice if that was true. Having only one credit score to worry about would make things much easier. However, the sad truth of reality is that it is more complicated than that.

A person’s credit score is based on the credit report between the three credit bureaus- Experian, Equifax, and TransUnion. Each of these bureaus uses different methods of determining credit scores to complicate the matter even more. Other various credit scoring models also have an impact, each one using slightly different modeling than the next.

The danger of this myth, according to Us News, is that you can be scared into paying for unnecessary services. You may subscribe to credit monitoring programs that do not give you the information you really need. What you see is not necessarily what the creditors see. Be wary of paying for information concerning your credit score.

The second myth is having a balance in order to have a good credit score. The balance that is reported to the bureaus tends to be the previous statement’s balance. The bad implication believing in this myth may have is that you may be keeping on unnecessary debt by not paying off bills in order to have a higher balance. Don’t let yourself fall behind in order to buy into this myth.

The final myth is one that should definitely be challenged. The idea that the credit bureaus are always right. This couldn’t be a more wrong idea to believe. It would be a magical and great world if it were the case, but as many can attribute, it simply isn’t. According to the Federal Trade Commission, one in five people have errors on at least one of the major three credit reports.

Thinking the reports are accurate encourage complacency. It means doing nothing when action should be taken. Having a lower credit score than you could have is going to hinder approvals and interest rates. Knowing what is on a credit report can be the difference of thousands of dollars.

As Us News says, and we agree, it is not fun but it is necessary to scan through credit reports to find and dispute any and all errors. It is tedious, it is annoying, but it the reward is plentiful. Having healthy credit is important and everything should be done in order to achieve it.

If you have any more questions regarding credit issues or are looking to start the process in getting approval for an auto loan, contact us at Bayside Chrysler Jeep Dodge. Be sure to like us on Facebook and to follow us on Twitter.

5 Tips for New Car Buyers


Read enough auto finance blogs and you’ll find that the majority concentrates on how to obtain that auto loan.  It’s tips and tricks on how to make yourself look the best when walking into the dealership so that you’ll drive away with the best possible loan.  What you won’t find in abundance is ideas of how to deal with the vehicle once you have the loan and the car itself.  That’s why it was refreshing when the Money section of US News ran an article showing the top five bad habits that drivers do that costs their new car value, something that’s important to have further down the road when it is time to trade in and trade up for another car.  So here they are, the five things you want to avoid with your new car so you’ll get the best possible value.

1) Riding Dirty

This translates to simply being clean.  While I am certainly not the beacon of cleanliness when it comes to a car, there’s an advantage for making time to make your car looking pretty.  The biggest reason is not just to look nice, but because that dirt that accumulates on the outside can lead to serious problems later on, especially when it starts to clog into your engine.  The writer got advice from a mechanic and made sure to mention not to open the hood and spray the engine with a hose, but to use a wet rag to wipe dirt from the hoses.  Bringing in a clean car, especially one with a well maintained engine, will lead to great offers come trade-in time,

2) Driving Hard

This is the hardest thing not to do after seeing a Fast & Furious movie.  We all dream of being a race car driver or being involved in some high-speed chase, but that’s best left to the fantasy and not in the car.  A new car needs some loving car for the first time out and having a lead foot can be an issue.  Being nice for the first thousand miles can be a real benefit later on.

3) Customization

This one should come with a disclaimer.  Not all mods are created equal and thus not all are harmful to your vehicle.  If anything, it should be a call for such things to be handled by professionals and not the kid down the street who found a spoiler online for twenty bucks.  Be mind-full of what you’re attaching to a new car and make sure it works with the warranty.

4) Not Keeping Records

This is another one I will have a hard time not sounding like a hypocrite on.  Keep track of what service you have done on the vehicle.  Should you ever want to sell to a private party, having such records will be a massive benefit for figuring out value and for the person buying.

5) Seeking Service from a Stranger

This goes back to the customization bit.  Again, make sure you know that the person working on your car, be it to fix something with the engine or putting on an extra mod, knows what they are doing.  Leaving it to the professionals is always a good thing to be safe about, especially when it’s on something as important and expensive as a new car.

There you have it, some great advice for people who managed to land themselves a spiffy new car and want to treat it right.  Most of this is common sense, but it’s always nice to be reminded of the responsibility that will ensure that your vehicle will be worth the best amount when it’s time for trading in.

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