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Tracey Espinoza remembers the day in 2013 when she had to leave the home she loved due to foreclosure. As she was packing up her bedding, she thought, “Well, at least they can’t take my pillows. At least I don’t think they can.”
Like many Americans, Tracy and her family got caught up in the aftermath of the economic downturn of 2008 to 2011. By 2012 neither her nor her husband’s salary had increased and getting another job at higher pay wasn’t panning out.
Complicating matters, they’d had two children in the previous four years, and Tracy cut back work to part-time to care for them. When Tracy could not find full time work in her field, they were unable to keep up with mortgage payments and fell into foreclosure, ruining their credit. When her husband’s 8-year-old Toyota Acura needed a new transmission, they turned to a “bad credit” credit card to pay for it. He needed to get to work reliably—without missing a day—after all.
Even now in 2020, wages have not caught up with the stock market rebound. A Wall Street Journal article quoted the senior human resources manager of Ohio’s First Solar manufacturing saying, “Wage pressure? I don’t think we’ve necessarily seen that.” After all, at their last job call, 700 people showed up for 120 positions. They had their pick.
Surmounting the “Bad Credit” Stigma
“Bad credit” loans and credit cards suffer from a somewhat undeserved reputation. Where “good credit” typically starts at the 700 score and above, “fair,” “poor” and “bad credit” make up the tiers beneath. With over 50% of Americans now in these “subprime” categories, many turn to higher rate loans to keep their computers, cars and even bodies working so they can earn a living.
Where “Bad Credit” Loans Do the Most Good
These three situations prompt borrowers to gather their courage and get a “bad credit” loan to keep going.
Building Credit: If you’re in the subprime credit category, most likely you’ve learned that every credit card you apply for checks or “dings” your credit record. Every “ding” drops your credit score by 10 points or more. Ironically, those with the best credit use credit cards the least. They have the most “available” credit. Of the $30,000 that their banks, mortgage holders and auto lenders feel they can afford to borrow, they may currently be using $3,000 of it. We all should be there someday! Borrowers working to build their credit rating, on the other hand, can avoid incurring a credit check and subsequent credit “ding” by getting a bad or low credit loan. Typically, the lender requires no collateral and will not contact Experian, TransUnion or EquiFax, the three largest credit reporting agencies. It simply needs bank statements, pay stubs, proof of residency and limited other documents.
Keeping Income Earning Tools Functioning: Many Americans today are abandoning corporate careers for freelance work. In fact, software giant Intuit performed a study of thousands of American workers and found an interesting draw to an independent lifestyle. Their findings prompted them to declare that by the year 2020, 40% of the American workforce will be freelance. While the freedom and the endless pajama-wearing is great, freelancers have to pay for lots of things that don’t even cross the corporate employee’s mind. These items include: computer repair, subscriptions to SaaS services, and transportation. When any one of these breaks down, the time and the repair budget fall on the freelancer. With work mounting, rectifying issues as quickly as possible becomes paramount. If clients have not paid but bills are due, freelancers and other entrepreneurs often have to resort to credit cards. The start-up business may not even have a credit line established. Therefore, they fall into the “subprime” category. Should they give up on their business? Is THAT the American Way? The most successful freelancers work back channels and creative pathways to reach their goals. Many businesses have resorted to “bad credit” loans and even credit cards to stay in business until their breakthrough.
When Fees and Penalties Are Burdensome: A 5% late payment on a $2,500 rent runs to $125 of money-for-nothing. A bad credit loan, on the other hand, comes in handy when big payments come due. When an unavoidable fee or penalty comes within just a few days of a paycheck or accounts receivable avalanche of past due payments from clients, it makes sense to pay the expense and then quickly pay off the short-term loan.
First Financial Welcomes Bad Credit Borrowers
First Financial can find the right loan instrument, even for those with poor, fair or bad credit. Because more than 50% of Americans fall into the subprime category, enterprising alternative banks (with all the security the big, bricks and mortar banks offer) deliver affordable loans. Apply for a bad credit or low credit score in minutes here. Follow us on Facebook to get smart about building your fin
Explore your auto loan options and apply SAFELY while waiting for meetings, watching television or in the doctor’s office!
We’re excited here at First Financial to offer you top-of-the-line mobile bad credit auto loans you can apply for completely through your iPhone or android device. Our “bank-level” 128-bit encryption is just as safe if not safer than going into your local branch, filling out forms and handing them to a teller. In fact, it’s highest level of security currently allowed by U.S. law.
Don’t let one or two banks ruin your excitement about trading in or buying a car. It’s more than likely that they WILL turn you down. . . along with over 50% of your American neighbors who also have “subprime” credit. Most banks are not specialists in bad credit auto loans. We’ve closed 1 million bad credit auto loans in the past 15 years!
You may be surprised to learn that you need to verify just $1500 in monthly income, that you are a U.S. or Canadian resident and have had no repossessions in the past 12 months. Those with bankruptcies that have been discharged or are in possession of Authorization to Incur Debt from the bankruptcy trustee still qualify.
Our mobile bad credit auto loans mobile application gives you all the information you need in easy-to-read, smart phone format. You can:
Our fast and simple online auto loan application and mobile auto loan application can get you driving within days. Want to keep an eye on lots of low cost online auto, mortgage, personal loans as well as the loan industry?
Where achieving a healthy weight depends on limiting food (energy) intake and increasing energy expenditure, healthy financial profiles spring from a similar balance of limiting expenses and maximizing income over time. Personal loans support both sides of this balance, optimizing wealth if not in the next year, at least in the next five or 10.
Personal loans often serve to:
Even if your credit score is under 640 (currently considered the lower end of “good credit”), you can get a personal loan. Here are some tips for becoming proactive and getting the personal loan that balance your cash flow in your direction, bad credit or not.
Consumers often find that once they begin their new financial habits (reducing expenses and increasing income), the process becomes addictive. Just taking charge of your finances will help you feel more confident and happy. Even if you’ve spent yourself into the “bad credit” category, having a plan and acting on it provides the reassurance that you won’t be there forever!
According to reports by the Federal Reserve Bank of New York, 107 million Americans have auto loan debts. This data shows more Americans have car loans than mortgages.
Borrowers able to get auto financing at reasonable rates access larger and amounts than before. This sounds appealing to individuals with a solid credit history, but what if you are just starting off in the world of credit and have no history at all? The good news is that even with poor credit you can still get car financing by opting for a No Credit Auto Loan with First Financial.
But how can this happen? Read on to find out.
First, you need to understand the meaning of a No Credit Auto Loan. As the name suggests, this is a car loan extended to an individual with either no credit history, poor credit or limited history. Therefore, you can get an auto loan even without having a credit history, or with a bad credit history.
Below are the reasons why you need to take a No Credit Auto Loan with First Financial.
Can you get a car loan with bad credit? This is a question asked by many people and you might be surprised to find out that of nearly 50% of American borrowers have a tarnished or limited credit history.
In other words, their credit scores lie in the subprime category, which means they have limited options for accessing loans. This category of people will find First Financial their best option since they can place their application regardless of their situation, whether its bankruptcy, poor credit, or no credit.
If you want to make a major purchase like a car or a truck and your credit history is not appealing, then this is the best website to turn to. You will be able to access the loan in the convenience of your laptop at the lowest possible rates you can ever imagine. The process is easy and confidential and you are sure to get a quick email response to update you on the progress of your application
First Financial is an online lender which means it is accessible 24/7 anytime, anywhere. Some of the conveniences you are certain to enjoy:
First Financial believes that obtaining a No Credit Auto Loan should be hassle-free because this is a long-term financial decision you are making. You should not be under duress by auto-dealers whose main concern is the interest they get for every client they bring on board.
Working on your car loan from home will give you the freedom to check on different prices and options available so that you are sure to make an informed decision.
The requirements of getting an auto loan without credit on this website are so easy you may think it’s too good to be true. While the requirements are stringent enough to avoid liability to the borrower, they are also “loose” to ensure that most of the applicants get approved. The following are the only qualifications for auto financing:
Even if you have been declared bankrupt, you have a reason to smile because First Financial will sort you out. Such financial hurdles will no longer deter you from obtaining a loan for your vehicle or truck.
Members of the armed forces both on active duty or retired and struggling with bad credit may wonder how they may qualify for a car loan. First Financial has tailored made auto financing programs that helps them to obtain auto loans in spite of their poor credit scores.
First Financial understand the difficulties encountered by these military men and women in their effort to maintain safety and that is why they have specialized programs dedicated to them. Military auto loans are different from normal civilian loans because they are often offered on lower interest rates, require lower down payments and come with special discounts.
The rate of approval is high mainly because of the stability of their income. Military workers should not put off buying a car because of the demand of their duties but should embrace this enticing opportunity
As mentioned earlier, First Financial is an online provider of bad credit car loan that partners with hundreds of authorized and licensed car dealers. This site will allow you to shop for dealers while comparing prices and interest rates.
To crown it all, you will be able to get several preapprovals using only one application. So don’t allow yourself to be limited by the car dealers or the financial institutions in your area, browse through our website for an array of choices.
It may seem daunting at first but it is not impossible. A few tips will help you navigate the murky waters of credit even with no credit history to back you up.
Engaging a co-signer with an excellent credit history in your auto loan will increase your chances of approval. Also, a reasonable down payment will show the potential buyer that you are serious about buying a car despite your bad credit history and may serve to reduce the total cost of your loan. Finally, shop around to explore the options available in the market and compare various interest rates and the payment plans that suit your budget.
Remember, First Financial will offer you the best financial support irrespective of your credit history. Apply for your No Credit Auto Loan today in less than three minutes.
43 million Americans have bad credit, with the bulk of these being young consumers.
While student loans and tough economic times can be blamed for this, poor planning and a low comprehension of credit facilities are partly to blame as well.
Cash advance loans are very convenient and can be hard to resist, but they can also put you in trouble.
How do these loans work, and how can you ensure to get the most out of them?
Here is an in-depth cash advance guide.
Your credit card lets you use your credit card to get a short term loan at an ATM or a bank. This is then paid back in the same way you pay for anything you put on your credit card.
In a way, this is like using your credit card to ‘purchase’ hard cash, which you then use to buy goods and services. In this way, you get to borrow cash against your credit card limit.
The same way you use your debit card to get cash from an ATM, you get cash from a credit card to be repaid with interest.
The difference between a credit card advance and a payday advance loan is that the latter is not dependent on your credit card.
If you typically do not carry paper money for your day to day spending, you might run into trouble when you need to pay for something at a business that only accepts cash payments.
In such cases, being allowed to convert your credit card limit into cash becomes very convenient.
Most credit card companies allow their clients to convert a percentage of their credit limit into cash, as opposed to the entire amount.
For most people, this translates into a couple of hundred dollars. This is therefore useful for smaller emergencies purchases and should not be dependent on for larger purchases.
While getting a credit card advance is easy, the interest rates can be a bit high.
Here are some of the associated costs that make it so:
These are determined by the financial institution that processes a transaction. This can be a bank or an ATM where you get your cash advance from.
If you use a bank outside your card issuer’s network, expect the fees to be higher.
These are determined by the company that issues your credit card.
These are charged in three different ways.
The first is by charging a percentage of the amount advanced. This can be as high as 5%.
The second way is by charging a flat fee per cash advance. For example, you can be charged $5 to $10 per advance, irrespective of the amount.
The third one is by charging the higher figure between the percentage or the minimum amount. An example of this is $5 or 10% of the withdrawal amount; whichever amount is higher.
To begin with, the interest charged on credit card loans is always higher than that charged on a credit card purchase.
Secondly, while you get a grace period with credit cash purchases, interest on cash advances starts accruing immediately.
It might be impossible to avoid this loan facility altogether.
For this reason, it’s key to know how to keep the costs low and avoid getting into unmanageable debt.
Here are a few tips.
The amount available for you to convert to cash is lower than your credit card limit. Exceeding this amount can result in higher interest rates and other over-limit charges.
Ensure to find out your card limit when you get a new card so you can adhere to a safe limit.
The key information to look out for is the one-off payable cash advance fee and the applicable APR as well.
If you are unclear on any terms of your contract, ensure to engage your service provider’s customer care representative.
Limit the use of this facility to emergencies you cannot use your credit cards on. It’s also important to create an emergency fund to draw from when needed.
If used without caution, credit card advances can spiral out of control making it difficult for you to make timely repayments. Consequently, this has the potential to lower your credit score.
Aside from only using this facility as a last result, limit your withdrawals to only what you need.
Resist the temptation to take out more because the higher you take, the higher the interest you will pay.
While this might seem like much, these amounts add up to a significant figure over time.
Taking out this facility does not directly impact your credit score, but it might have some indirect consequences.
The first one is that it raises your credit utilization ratio. This is among the benchmarks used to calculate your credit scoring. A high utilization ratio positions you as a high-risk borrower and may lower your scoring.
The other one is tied in with the costs of repaying a credit card advance. If you are not able to afford the high-interest rate, you may resort to late payments or even default.
When this information makes its way into the credit bureaus, it can negatively affect your scoring as well. As a rule of thumb, avoid making payments 30 days past the due date. Timely payment could help improve your credit score.
Ensure you understand all processing costs, the applicable APR and your ability to repay before taking out the loan.
An average new car in America will set you back $32,000. This amount is too steep for many to pay for in cash.
For most people, taking a car or a personal loan is the most viable option but which should you go for between the two?
To answer that question, it’s important to understand what each of these options entail. In this article, we shall make an analysis of personal loan vs. car loan to help you make the right choice.
A personal loan is an unsecured facility that provides the borrower with funds from the lending institution. The institution is most often a bank.
The funds are advanced in a lump sum, and the borrower can channel their loan funds towards any venture they see fit. These loans typically range from $1,000 to $ 50,000.
A personal loan can also be secured, meaning you attach an asset of value to your loan. On default or inability to repay your loan, the lending institution can seize the property to recoup their funds.
However, most borrowers opt for the unsecured loan.
Because of the risk involved, unsecured loans attract higher interest rates than secured ones.
Their requirements are also more stringent, with the borrower’s ability to repay and previous credit history being scrutinized.
It does not end there, the amount you qualify for, and the interest rate at which a lender advances your loan are both dependent on your credit rating.
Even though there are things you can do to improve your credit rating, you will have to contend with high interest rates if your rating is less than stellar.
Personal loans have a repayment period attached. The longer the repayment period, the higher the interest you will pay by the time the loan comes to term.
The reverse is also true; you pay less interest with shorter loan terms. However, you should go for these only when you are absolutely confident that you can comfortably pay the higher amounts.
These loans are considered a secured loan.
The security, in this case, is the car you intend to buy. If you default on your payments, the dealer repossesses the vehicle to recoup his money.
The borrower makes fixed payments over the duration of the loan. As the borrower, you take physical ownership of the vehicle, but the financier owns the asset until you make your final payment.
Because the car you buy is also collateral for your loan, a car loan is deemed to be low-risk financing.
It, therefore, attracts lower interest as compared to a personal unsecured loan.
The interest rate is also fixed from the onset, cushioning borrowers from increases experienced with personal loans.
Most car repayment terms are under 36, 48, or 60 months. Again, the monthly payments are higher for shorter repayment terms and lower with longer repayment terms.
Conversely, the interest paid is higher for more extended repayment periods than for shorter ones.
Unlike a personal loan where your credit history features prominently, your credit rating does not significantly affect your car loan application.
Similarly, an unfavorable credit rating does not significantly impact your borrowing amount nor interest rate.
This means you can still go for a pricey car with a poor credit rating.
As already discussed, these loans have their similarities and differences. They also have their advantages and disadvantages.
The merits or personal loans are two-fold.
The first is that you can use your personal loan for a car, or channel it to other uses, partially or wholly. As such, a personal loan also offers more flexibility in repayments.
Personal loans do have a downside, however.
Due to their unsecured nature, personal loans employ stricter eligibility criteria and requirements. Upon qualification, you also pay higher interest rates.
Personal loans also lock out people with poor credit scores.
Car loan applicants enjoy lower interest rates, with faster approval processes. If you need a car and have a poor credit history, a car loan might be the only financing option available to you.
This notwithstanding, you need to put up a deposit to get a car loan. The amount will be dictated by the total cost of the car. This can be limiting.
In addition to this, you do not fully own the car until you have made your last payment.
Whether you go for a personal or a car loan, there are tips to help you find a good financing option.
Determine how much you can afford to spend. A rule of thumb is that you should be able to repay the loan within three years.
This cuts down the amount of interest and prevents you from paying more than the real value of the car.
Contact your local banks and credit unions to see if you can be pre-approved for a loan, and what the interest rates are.
Compare bank rates with dealership rates, and do your research on any discounts that can be offered to you.
Find out if setting up automatic loan repayments or switching banks will lower your interest rate as well.
All this information will point you towards the most affordable option.
The pre-approval process may include producing proof of income documents.
Be ready with this information, as well as any other financial information that can help your loan be approved and disbursed faster.
When you reach advanced stages of loan approval, you can get to the fun part, which is shopping for and test driving different cars.
A personal loan offers more leverage in terms of bargaining power on your car of choice.
Do not shy away from negotiating with a dealer either. Shop around and find out the going rate for the car you want.
If you have an older car, it might seem easier to trade it in. While this is one way to go about it, selling your old car independently will give you a better return than trading it in.
The key take away on the personal loan vs. car loan question is to understand the differences and measure either type of loan against your circumstances to find the best fit.
First Financial is a leading financial solution provider to people with a poor credit score. Contact us today if you are in need of a personal or a car loan.
Did you know that 107 million people have taken out an auto loan to help pay for their car or truck in America?
Purchasing a car can be a costly expenditure. Most people don’t have the cash on hand to pay off the debt of a car immediately, which is where auto loans and personal loans come in handy.
Discover our guide on how to take out a loan for a car and familiarize yourself with the process of buying a car.
If you have never dealt with loans and credit scores, it can be a very difficult thing to navigate and understand.
There are many different types of loans available. Some of which are great for buying a car, and some that aren’t as good for this type of purchase.
For example, the best types of loans are auto loans, bank loans for a car, or alternatively, you can use a personal loan to buy a car.
Personal loans for car purchases sometimes have costly interest rates, so some people prefer not to use personal loans when they are purchasing their car.
Research has found that car loans are typically cheaper because they are secured by an asset (i.e. the car, which the lender can repossess to cover the costs if you can’t pay your loan).
Federal Reserve found that in May 2018, a 24-month personal loan from a commercial bank had an interest rate of 10.31%, whilst a 48-month new car loan from a commercial bank had an interest rate of 5.05%.
Unlike buying a car outright with cash in hand, like you might have done for your very first car, taking out a loan for a car needs to be thought through.
These are the key things you need to do when you want to take out a loan for a car.
The very first thing you need to do when you want to take out a loan for buying a car is to work out your budget. Calculate how much you can comfortably pay off each month.
According to the Federal Reserve Bank of New York, a record of 7 million Americans are at least three months behind on their car loan payments. It is critical that you work out how much money you have coming in each month, and how much you can pay off.
The best way to work out what you will actually be paying for your car is by calculating how much you will be paying each month and for how many months. This calculation needs to include interest rates, too.
Whether you want a personal loan for a car or an auto loan for a car, you need to check your credit score and history.
Poor credit history might mean that you pay higher interest rates than if you have a good credit history. If this is the case, you might want to hold off getting a loan and focus on improving your credit score.
If you have a good credit score, you might be able to negotiate a better deal with your loan lender.
Find out how you can secure an auto loan without having previous credit experience or a credit score.
Once you have an idea of how much you have to spend and what your credit score is, you can research your options. There are a number of loan lenders available, however, not all of them will be right for you.
You can get car loans from banks or credit unions, dealerships, or online lenders. Compare the different types of deals and payment plans each of them offer and work out which one is best for you.
Car loans typically come with 3-, 4-, 5-, or 6-year terms. The longer the payment plan, the more interest you’ll end up paying, so make sure you work out which plan is the most cost effective for you.
Once the lender has given you a quote for the loan, you will be pre-approved, which doesn’t mean that it’s guaranteed. Once you have been pre-approved, you the lender will then check your credit.
Once you are pre-approved for a loan, the lender will give you a letter that you can take when you go car shopping. This letter can help you see if you can get a better deal from the car dealership.
Even though you have been pre-approved, it doesn’t mean that you need to sign up for the loan. It is still your choice whether you pursue this loan or you can choose another one.
You also can adjust the terms of your loan, for example, if you find a cheaper car and don’t need an as bigger loan, you can apply for a smaller loan instead.
The final step is the most enjoyable one. Once you know how much you can afford each month, and you know what kind of loans you can get, you can go car shopping.
Make sure you do your research and find a car that is the right price and has the right features that you need.
Applying for a car loan doesn’t have to be complicated or confusing. Just follow our guide on how to take out a loan for a car and you’ll soon be driving away with a new vehicle.
Apply for one of our auto loans now and see how we can help you.
Alternatively, if you need help with your loan process, get in touch with our team and discuss your loan requirements.
The average credit score in the United States in 675. This would be considered a ‘good’ credit score.
However, any score lower than that could be considered ‘fair’ and then plummet to poor or exceptionally poor. Sometimes it’s qualified as ‘bad’ depending on the company.
A poor or bad credit score can make life a little more challenging. It’s harder to acquire a loan, buy a home, or even a car with bad credit. Is it even possible to buy a car with bad credit?
The short answer is, yes! But what are the details of that yes? Let’s dive in a see how you can get a car with bad credit.
Purchasing a car, even with low credit is doable, though no doubt challenging. Here are a few key ideas to keep in mind.
Before you visit any dealers, you need to have a solid grasp on your credit score and also your credit report. You can acquire your credit report for free and overlook it to make sure there’s no fraudulent activity and better gage reasons where you could improve your credit. If you spot inaccuracies on your report, it could be contributing to your low score.
Some people need a car right away, but if you don’t, use this time to address those red marks on your credit report. For example, paying your bills on time has a significant impact on your credit score. Making on-time payments can boost your credit score and signals to lenders that you’re trustworthy.
If you’re not in a hurry to buy a car, take some time to evaluate your score and report. It could pay off especially when it comes to ease of securing a loan and the loan rate.
Often, low credit scores are a result of a chain reaction in your financial life. Not sticking to a budget, racking up debt, and the inability to pay it affects your score dramatically.
It can be tempting to buy the fanciest car possible but doing so could leave you with a large monthly payment. As a result, if the car payment is out of your budget, your payments could be late. This further destroys your credit.
Go over your monthly budget and bills to determine how much you can comfortably afford before you go car shopping. Researching current loan rates could help you negotiate when it comes time to buy.
Some lenders are very restrictive about who they lend to. It’s recommended that you shop around and research lenders before applying for any loan, especially with bad credit.
Reaching out to your local credit union to pre-apply can make the application process smoother, as credit unions are more friendly to people with bad credit. Take into consideration lenders who work solely with those who have bad credit.
Avoid applying to several different lenders as this creates a hard inquiry on your credit report. A hard inquiry lets lenders know you’re interested in acquiring debt and can lower your score. Knowing this is one reason why researching lenders first are vital.
If you’re approved for a loan, pay attention to more than just the monthly payment, even though that’s the deciding factor for most buyers. A monthly payment amount is one part of your agreement, yet you could be paying more over the life of the loan if your payment is small. You might think you’re getting a good deal (at first), but over time you’re paying more than you want.
Stock away as much money as you can to use as a down payment if you have plenty of time before you need a vehicle. A down payment shows lenders or dealers that you’re serious about purchasing a car and making the payments. In some cases, it can even lower your interest rate and also your monthly payments.
If you’re the overachieving type, save up your money and pay for the car in cash. Doing this avoids having to work with lenders, and you don’t want to worry about a monthly payment.
A co-signer is a person with good credit who signs the loan with you. This seems less risky to lenders because they have someone who will pay the loan if you cannot. Bringing along a co-signer increases your chances of getting loan approval.
There are some risks that accompany having a co-signer. This debt also shows up on their credit report, and their score takes a hit if you cannot make payments on time. The relationship between you and your co-signer could be severed or damaged if you default on your payment.s
Some dealerships offer their financing which could work in your favor. In this case, you avoid having to apply to a third-party lender. Certain dealerships work primarily with those that have low credit.
It’s important to note that it’s possible these dealer-lenders offer interest rates that are sky high and could include repossession in their terms if you cannot make the payments. Usually, they do not report to the credit bureau, so using these loans to build your credit is out of the question.
If you have to buy a car with bad credit, don’t stress. Even though it might be hard, there are ways to own your car and rebuild your credit.
Are you looking for more information on auto loans? We’re here to help! Here’s some answer to questions you may have.
16% of Americans have a credit score of below 579. This is the lowest level of the FICO score and is categorized as “very poor”.
A poor credit score can have a serious impact on your personal life and can affect your business negatively as well.
While no one can guarantee that you will hit an exceptional score, there are steps you can take to improve your credit score.
Here are seven tips to raise your credit score quickly.
The very first step to take is to get a copy of your credit card report. This is the only way to know where you stand before you figure out the specific actions to take to make things better.
This is, however, not all you will be doing with your report. Go through it carefully, checking for any error and omissions.
Look for things like a repaid debt that’s been listed as a default or a loan you repaid on time that is not listed.
If you identify any of these issues, move to have them corrected. This action in itself can add a few points to your rating.
You will be surprised at how helpful your creditors can be. Unfortunately, if you never ask, you will never find out.
If you are having trouble making payments, make contact with your credit card issuer and communicate this with them.
Most providers have temporary hardship programs you can take advantage of. The benefit of this is that you can have your repayment amounts reduced until you get back on your feet.
Smaller, more manageable installments mean you can pay a lot more comfortably. This is better than skipping payments and having a creditor send a negative report that sheds a few points off your score.
This is a great way of giving your credit score an immediate boost. This works particularly well if you are just starting out and have little information on your credit rating.
You do this by getting someone with a high credit card limit and an even greater repayment history. Their card issuer sends them a card with your name on it.
Legally, you are not obligated to make payments on any debt accrued on the card. But its usage reflects positively on your credit score.
The key is finding someone with above board transactions. In a sense, you inherit the person’s positive credit history.
However, not all credit card companies report authorized users. Before you get on it, do your research and find out if it will be reported.
It’s not uncommon to fall behind on payments from time to time. However, these small mistakes lower your credit score.
If you are in good standing with your creditors, it does not hurt to request them to delete some of the reported late payments. Financial institutions regularly communicate with Credit Referencing Bureaus, and all it would take is a quick phone call on your behalf.
If the request goes through, then you will have fewer negative reports, which will add some points to your credit rating. Nevertheless, try and restrict your late payments to 30 days. Creditors will not report late dues failing in this time frame.
If your issue is forgetfulness, rather than availability of funds, you can have your banker or employer make direct payments if this facility is available. If not, there are numerous software tools you can use to remind you when your payments are due.
You might be eager to forget about your car loan or student loan debts once you make the final payment.
However, as long as you completed your payments promptly, those records may help your scoring. The same is true for credit card debt.
All you need to do is keep these debts on your record. If they were entirely left out, then provide all the information to the credit Reference Bureau so they can use it to calculate your credit score.
Bad payment histories are deleted with time. However, bankruptcies stay on your report for 10 years and late payments for seven years. You don’t have much leeway with these.
Credit utilization is the amount of credit card balance you have compared to your credit limit.
This is the second largest factor affecting your credit score. The first is your credit repayment history.
The more credit you use on your credit card, the further down your credit rating drops. This trend indicates you are spending a significant portion of your income to repay debt, which makes you likelier to default on payments.
The best credit utilization is 0, which means your credit card limit is untouched. This defeats the purpose of applying for a credit card in the first place.
As a rule of thumb, keep your credit utilization ratio at 30%. This means using less than 30% of the credit limit availed to you. Anything above this can cause your rating to drop.
Under the FICO system, people with the highest scores have a utilization rate of 7%. The lower your utilization, the better.
The average age and number of accounts you have held are an important consideration in evaluating how you handle debt.
This tends to disadvantage people with a limited credit history.
UltraFico and Experian Boost allow people with limited credit histories to puff it up using other information.
Experian requires access to your online banking data and allows Credit Referencing Bureaus to add utility payments to your history.
In the same way, UltraFico allows you to give permissions for savings and checking accounts to be used alongside your report when calculating your credit score.
All in all, while it is possible to raise your credit score quickly, expect a few bumps along the way and allow yourself some time.
At First Financial, we understand that while you work on your credit rating you might still need help from time to time. No matter your credit score, we have a financing solution for you. Contact us today for more information.
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.
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:
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:
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.
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:
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 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.
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?
In general, personal loan amounts range from $2,000 to $50,000. Borrowers with credit scores over 680, low debt utilization and robust income win amounts toward $50,000. Those not hitting those marks tend to get less. What are the criteria for determining personal loan amount?
It’s certainly not what you need, no matter how much you need it. Your wedding expenses bill of $30,000 or your remodel estimate of $50,000 doesn’t win you that amount automatically. The amount you can borrow with a personal loan depends on your credit score, your debt-to-income ratio and the purpose for the debt. Lenders evaluate how much you’re most likely to pay off, not what you need. Of course, those with higher credit scores will get better rates, but even those with fair, poor and bad credit can qualify for personal loans should their DTI and borrowing purpose warrant it.
Since 2012, lenders have been assertive about asking the purpose of the loan. Unlike with a quick cash advance, lenders are more generous when the purpose may strengthen the borrower’s financial health. A remodel or debt consolidation put a twinkle in lenders’ eyes. Lenders actually consider some purposes frivolous these days. They’ve been known to turn down vacations, hot tubs, and other non-essentials, particularly if DTI is high. In the end, however, most consider the purpose of the personal loan an “influencing” factor rather than a primary one.
The debt-to-income ratio measures the amount going to debt service every month compared to the income coming in. A good debt-to-income ratio is 35 percent or below. At just eight points higher—43 percent—most lenders will not approve a borrower for a loan. Debt includes personal loans, student loans, car loans, mortgages and credit card bills. Your cable bill, rent, and car insurance do not figure into this debt calculation. Calculate your debt to income ratio and know your credit score so you can understand whether your loan amount offers are the best you can get.
A+ Rated First Financial Specializes in Low-Credit-Score Personal Loans
You may be surprised to learn that different lenders like to specialize in niche loans and borrowers. Some go for very short-term loans with high amounts. Others want to write only loans for borrowers with excellent credit. They create loan “products” that work well for the needs of that audience and don’t want to spend the time and money finding clients in other niches.
Rated A+ by the Better Business Bureau, First Financial has developed a specialty in serving those with fair, poor and bad credit scores—also known as “subprime” borrowers. We get you the money you need, all in the comfort of your home. You will know whether you qualify in five minutes or less with NO IMPACT to your credit. Apply today!
It is safe and secured and will require just some basic information that is necessary to make sure that you get a damaged credit loan. The application takes just about a minute and can be found right here. After that it will take just a day or two before you will be contacted to know if you have or have not been approved for the car loan. It is a great way to get an automobile loan and to also improve your credit score for later. Applying elsewhere is just going to increase your chance of failure which will only end up hurting your credit even more. Not everyone will be approved for a loan so there is no guarantee that you will receive financing, but we help to make sure that if it is possible for you that it is going to happen for you. It is simple and what have you got to lose?
There are many different auto finance companies you can choose to apply for a car loan with. Getting approved for a car loan is a “must” for most car buyers today, as many car buyers do not have the financial means necessary to pay cash to buy a new or used car. Even those that do have the financial means to pay cash often don’t want to hand over such a large amount of cash and would prefer to finance their purchase. Before you apply for a car loan online, however, you do want to make sure that you find the best loan possible.
This is the best way to improve your score, and it’s never too late to start. Even if you’ve had serious delinquencies in the past, those will count less over time if you keep paying your bills on time.
Keep credit card balances low.
High outstanding debt can pull down your score. Don’t go maxing out your credit cards all the time.
Check your Credit Report for accuracy.
It’s possible that there may be inaccurate information on your credit report that can be easily cleared up (see How To Fix Credit Report Inaccuracies). If this proves to be the case, then you should contact one of the three credit reporting agencies—TransUnion, Experian or Equifax.
Pay off debt rather than moving it around.
Consolidating your credit card debt onto one card or spreading it over multiple cards will not improve your score in the long run. The most effective way to improve your score is by simply paying down the amount you owe.
Most of the time this happens because of the reasons that are beyond control of the Borrower like getting laid off, divorce, or health problems.
If you have a history of poor credit or think that you might, it’s important that you find out and take the steps to improve it. It will take time, but with discipline, you may expect to see improvement in as little as six months. You see, creditors are interested in a track record. You’ll have to prove that you consistently pay your creditors on time and that you can effectively pay down your Debt.
Poor credit is the first obstacle to overcome on the path to attaining wealth. Poor credit is not a problem because we are repaid directly by the estate or trust and you keep the rest. Poor credit is not always an indication of your responsibility and most lenders will look at this fact. Poor credit is not an obstacle to use. Poor credit is something that can happen to just about anyone, and it’s not always due to circumstances we could have controlled. Poor credit is no more a hindrance to get auto loans in Canada. Poor credit is like a crush when you go out in loan market for loans.
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