First Financial  
 

First Financial Bad Credit

Take the Pain out of Monitoring Your Finance

Go from bad credit to good credit without beating yourself up

Can there be any joy in monitoring your finances? Your bank balance is disappointing more often than not. Trimming expenses doesn’t bring any joy. Reminders of irresponsibility can be a gut punch.

Still, a different mindset can help you make the changes to put you on the path to good credit.   

Begin by forgiving yourself for financial mistakes

The shame and blame we heap upon ourselves for not being where we want to be financially can make our situations worse. It leads us to avoid confronting credit spending, recurring debits from bank accounts, balances on personal loans or car loans, and important conversations with family members.

Shame springs from an idea that the individual has departed from social norms. Start dismissing your shame when you understand that one in three others you’ll meet today also have credit under 601. That’s right—one-third of Americans today have bad credit.

The individual experiencing bad credit has lots of company. And is this all their fault?  With aggressive companies relentlessly bombarding us with messages that we deserve their products and that we must keep up with our peers, it’s no wonder we overextend ourselves.

If you can grab your financial issues “by the horns” so to speak, you have made the first

 step on the path to success. Some psychologists tell us that, “a willingness to endure discomfort and capitalize on challenge is a trademark among successful, fulfilled individuals.” While it will require a little effort, put a budget in place, inform those who may impact it, stick to it. You’ll quickly find positive feelings about yourself and your financial situation multiplying. As Benjamin Franklin told the framers of our constitution, “Once begun, half done.” Those quill pens got to writing, despite their enormous task. 

Gamify Your Savings

Rather than tracking every $3 coffee, focus more on a positive indicator: your savings level. As that rises, set a reward after reaching certain amounts. The reward could be you get to buy a new piece of clothing or 10 shares of SnapChat stock. Set these levels up ahead of time and stick to these commitments. These rewards can offset the sense of loss from avoiding day-to-day overspending.

Take the pressure off when you avoid social media

First and foremost, understand that social media is simply carefully selected snippets of your friends’ and family members lives. What they choose to share is designed to elicit envy. Those of us here at First Financial are constantly surprised at friends’ life-is-so-great posts and how these compare to what we know are their real struggles.

What’s more, when you focus on others, you remove your attention from your own issues. If you have bad credit, all your attention needs paid to your spending and savings plans.

Let the social world turn without you when you use a religious tradition, mindfulness, meditation or good old smart reading to understand how pointless it is to compare yourself to friends, relatives.

Deepen Your Relationships when You Lay It All Out for Loved Ones

Serious conversations with loved ones can be intimidating, particularly when they’re about money. Strategize how to take the sting out of belt-tightening before you tackle it with those you love. In other words, have alternate plans to take the place of lavish habits so that your new financial regimen doesn’t translate as 100 percent loss.  

First, explain how it’s important now to join forces for common goals and how these efforts will unite you. Emphasize that working together for financial fitness by cooking meals together, going to resale and thrift shops and competing for better money saving strategies will get you talking and sharing more. Also, make sure you include your family members’ long- and short-term goals in your planning. Study after study reveals that children and spouses prefer experiences and time spent together over material goods anyway. Shared experiences just connect us better and for longer than shared material consumption. Use that research if you have to!

Your new financial fitness system may benefit from gratitude journals. Everyone should jot down at least one thing they’re grateful for every day. Sharing is optional, but when these grateful moments that include others are shared, it strengthens bonds. These journals, particularly effective when an individual is feeling particularly short-changed, have proven to increase happiness significantly.

How to Manage Employee Expenses with Prepaid Debit Cards

We’ve all seen movies depicting employees whipping out the corporate credit card to pay for extravagant meals and entertainment. Business owners shudder at these scenes, and they should. The Association of Certified Fraud Examiners tells us that 15 percent of all employee expenses can be categorized as fraud. In another study, 66 percent of employees admit to abusing the company card with:

  • High-priced dinners
  • Office supplies for home use
  • Mobile phone and app purchases and upgrades
  • Airline upgrades

Another portion admit to inflating transportation expenses, getting a cash refund from an expensed item and even creating a fake expense. These last three are full-on fraud. Still, with every opportunity, some people will take advantage. The credit card with a limit of thousands of dollars just trips some kind of spending wire in some employees. When a card’s limit set at $5,000, a $75 dinner for one seems reasonable.

Business owners can reduce their exposure to “expense padding” and fraud when they give their employees secure prepaid debit cards as opposed to credit cards. Like a teen with a set spending amount, employees must budget within a the debit card’s finite amount.

When presented positively, the prepaid debit card can be just as appreciated by employees as the credit card. Simply explain that the debit card works best for your taxes and/or accounting structure. Make this expense tool a decision based on business goals, not something to keep employee spending in line. Avoid mentioning potential expense abuse or fraud all together.

Other benefits of the prepaid debit card for business includes:

  • Easy availability: get instant approval from the best online sources. With online banking now as secure as traditional, bricks-and-mortar banking, anyone can apply for and receive prepaid debit cards within days of ordering. Pay using your credit card or business bank account.
  • No credit card dings: prepaid debit cards do not intersect with your business’s credit rating in the least. From the moment you buy it until the moment the employee spends the last $5, the debit card involves only up-front cash transactions.
  • Convenience: Prepaid business cards are accepted everywhere the issuers’ cards are accepted. In-store, online and phone purchases all work with a prepaid debit card.
  • Better employee spending controlLoad the card with a set limit of money and task the employee to stay within that amount. As with a credit card, debit cards allow you to track exactly what the employee spends. Some companies even let you monitor business card transactions from your computer or mobile app. Business owners can even freeze and unfreeze the debit card as needed.

Prepaid Debit Cards Control Employee Spending So You Don’t Have to!

Some businesses choose company credit cards rather than debit cards because of the potential for rewards and the lower fees. Debit cards can also come with more fees than credit cards. Still, when compared to the financial losses due to abuse, these fees are negligible.

When a small business becomes a mid-sized business, expenses accounts follow quickly, especially for sales professionals. Then, additional office locations can mean travel expenses. Debit and credit cards empower employees to make their own decisions while keeping spend under control.

How to Keep Cash Advance Costs Low

Because cash advance interest rates can start accruing on the first day, the borrower’s best strategy is paying the amount off as soon as possible. If that means two days, at least this loan is behind you. Thank it for:

  • Allowing you to pay other bills on time with no penalties.
  • Preventing any late payment notices from going to the credit bureaus Experian, TransUnion or Equifax.
  • Helping you get your car or computer fixed so you can keep earning money.
  • Your freedom to jump on a cash-only purchase you’re competing for.

Pay off the online cash advance fast by linking it with the checking account where your paycheck gets deposited. That way, the minute that paycheck goes in, the cash advance gets paid off. If you use your checking account as the hinge between your income and your loan, highest interest payments come out first. Borrowers can thank the CARD act of 2009 for that backup.

The second way to save on cash advance costs is to borrow as little as absolutely possible. With interest accruing daily, the smaller the amount, the less the interest.

Finally, if you don’t pay the cash advance off within days, you must pay it off on the date you initially agreed to. Rolling over a cash advance sets you up for additional fees on top of the interest rate you get charged daily. The worst situation to get into is if you’re only paying off the cash advance’s interest month after month. Have more questions? Get answers to the most common on our cash advance FAQ page.

Think you can manage a cash advance responsibly? Apply today!  

Get Started

What Your Peers Are Spending & Borrowing for Cars in 2019

Get some perspective on your auto goals by analyzing the budget others are advocating for transportation. Today, many pundits consider the car to be a consumer’s biggest high-tech device. With voice-enabled navigation, communication and entertainment options standard, really, we have to agree. Then, too, technological advances like near-automated steering and emergency stop assistance (should driver lose consciousness) are making cars safer. With all of these dream features, higher price tags follow.

To ensure drivers get into these space-age vehicles, the car and car loan industries are adapting with better deals and longer loan terms. If you haven’t bought a car for a while, knowing industry averages will help guide your decisions.

Experian’s analysis of 4.7 million auto loans reveals that the average American car payment is $523 per month. Buyers of new cars, trucks and SUVs borrow an average of $31,453 to get their new rides onto their driveways. The average length of a car loan is five years and nine months, not too far away from the typical five-year term, but revealing that people are taking out longer term loans as mentioned above.

Today, many new and used car buyers are getting their loans online before heading to the dealership. After all, with the loan issues taken care of, buyers can better negotiate car price. They also have the confidence to walk off the dealer lot when they are qualified for financing. Car shop on your terms when you secure your auto loan through A+ rated First Financial.

When and Why to Use a Personal Loan to Buy a Car

Given that they’re secured loans, auto loan interest rates can be low, making them the obvious choice for buying a car. Still, there are certain situations where a personal loan for a car purchase makes sense, too.

First, ever seen a line of cars outside of your favorite grocery store? They’re all for sale, and often several buyers are milling around looking to get a cool ride at a great deal. Sellers always want money immediately, and they certainly don’t want to mess around with being paid over months. That means you need the cash on hand in the form of a cashier’s check. The online personal loan puts the funds in your checking account within days. If you have it ready to go when you make an offer, you have a better chance of getting the car.

Then, if tail fins and hood ornaments are your thing, you have classic cars on the brain. Vintage collectors know that lenders hesitate to finance a car if it’s under a certain age or is over 200,000 miles. Personal loans come in handy to snatch that old Corvette or Mustang from the market.

Finally, low-credit-score borrowers can sometimes get lower interest rates when they go the personal loan route. Some lenders, like First Financial, specialize in providing personal loans to those with credit challenges.

Online lenders have the fastest, easiest processes for winning personal loans. You find out in minutes how much you qualify for and get the money the next day in most cases. Have more questions? Review our personal loan FAQs. Ready to apply?

Get Started

 


First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217

 

First Financial® is a Federally Registered Trademark

©1994-2019 First Financial®, All Rights Reserved. All other products and company names are trademarks of their respective companies.