Tag Archives: used car

Improve Your Credit By Purchasing a Car

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Looking to get a vehicle for yourself but are also suffering from having bad credit at the same time?  What you might not know is that having credit issues and purchasing that very car can actually go a long way in helping you improve your score.

Auto Credit Express breaks down the how this can help.  Lenders are looking to get people through the dealership doors even if they have low FICO scores.  Just because your credit is bad now doesn’t mean that it was in the past.  If they can see that changes in your score occurred due to major life events, such as losing your job or experiencing a medical problem, then the odds are more in your favor of getting a good loan.

Before you do head into the dealership, however, there are things to keep in mind.  First, that loan you’re getting after a dip in the FICO score will be at a higher rate than many consumers are used to.  You’ll also want to make sure to make each payment on time, as well as other bills you have, so that you can qualify for a better rate the next time around.  If you miss a payment on time, then it will take your credit score even lower down.

The point of purchasing a car in this case is to improve your credit while getting the vehicle you need.  The best tips to do this are to make sure that you look for an inexpensive car, small or midsized.  See if you can choose a loan term of 48 months or less.  Make sure you check on the history of the vehicle.  By following these steps, you place your self in a position to save money by trading out in 18 to 30 months for a better deal.  Also, knowing that history makes sure you avoid thousands of dollars in repair bills.

Come on in to Bayside Chrysler Jeep Dodge and start the process of improving your credit while driving away in that car you need.  We love to say yes at the dealership.  Be sure to like our Facebook page and follow us on Twitter for more tips and deals.

Getting Approved After a Denial

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The downside to trying to get an auto credit loan is that they can be denied. It’s extremely discouraging for both sides, the customers who want it and the lenders who want to provide the loan. Not every application that comes in will find itself approved but just because it happens doesn’t make it the end of the line. There are things that you can do, even if denied, to still get an approval.

Auto Credit Express breaks down the factors that can lead into getting denied in the first place. Being turned down due to poor credit doesn’t mean it’s all over, denials typically mean that the loan can’t be approved in the form it was submitted. While the following list is not the sign of death for an application, many of these elements are considered when a lender views the loan.

Is the applicant in credit counseling? Do they have a dismissed bankruptcy? Does the person have multiple repossession on their credit history? What about multiple bankruptcies? Does the credit report show past due child support or excessive tax liens?

The question is what can someone do to turn a denial around and get themselves approved for a auto credit loan? There are four steps that can lead to a reversal of fate.

Step one is to take a look at your credit report. Make sure there is no misinformation that is dragging down your score. Always make sure it is up to date, and most importantly, completely correct.

Step two is think about taking a less expensive vehicle. If the lender reviews your application, they may determine that the car is too expensive even if it fits their parameters. Make sure to inquire with the lender if another cheaper vehicle could help.

Step three is to give more for a down payment. Having more money up front can go a long way in putting you in the vehicle you want.

Step four is to have a co-signer. If you have someone you know that has a credit history as good if not better than your own, it can really help the process.

A denial is not a stop sign, it’s a sign that you should re-evaluate and identify the reason why. If you’re careful and follow some of these tips, you’ll find yourself in a much better position when at the dealership.

Apply online with Bayside Chrysler Jeep Dodge to help get in that car you’ve been wanting. Make sure to follow us on Facebook and Twitter for more financial tips and news.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Want Better Credit? Break These 3 Bad Habits

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We get questions all the time from people who want to get a car loan but have poor credit. What can they do to improve their score and their overall financial health? The answer isn’t as complicated as one would expect, but it involves one of the toughest things a person can do, which is changing their habits. We’re going to do a quick rundown of how you can break 3 of the biggest habits holding you back from a great credit score.

First, get a notebook small enough to carry in a pocket or a handbag, and make sure you always have it with you. Whenever you make a purchase, write it down in the notebook. This way, you know exactly where your money is going, and you break the habit of making impulse buys on a debit or credit card.

Second, pay down your credit card balance. A good part of your credit score calculation is the debt you have compared to the amount of credit currently available. The lower your balance on the credit card, the better your credit score will be. Once you have paid down your credit card, keep it at an amount you can pay off each month. Break the habit of debt procrastination, saying to yourself, “I’ll pay it off next month.”

Finally, get out a calendar or a day planner and make note of the days that your bills are due. Late payments can knock down your credit score very quickly and can lead to extra penalties or a higher interest rate. Break the habit of paying late, and your credit score will definitely improve over the next year.

Looking for more car buying and credit tips? Check us out on Facebook and follow us on Twitter for more, and stop by Bayside Chrysler Jeep Dodge if you are looking for a car but worried that your credit is holding you back.

Image courtesy of Pixomar / FreeDigitalPhotos.net