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7 Life-Saving Tips That’ll Raise Your Credit Score Quickly

Do you want to raise your credit score quickly? If you follow these tips, you'll see improvement in your score in no time.

7 Life-Saving Tips That’ll Raise Your Credit Score Quickly

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.

1. Check Your Report for Errors and Omissions

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.

2. Negotiate on Outstanding Balances

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.

3. Get Added as an Authorized User

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.

4. Ask Creditors to Delete Late Payments

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.

5. Old Debts Can Raise Your Credit Score Quickly

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.

6. Watch Your Credit Utilization Rate

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.

7. Jump on Score Boosting programs

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.

Consistency Is Key

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.

Know the 4 Most Common Auto Loan Mistakes Before you Go to the Dealer

cash and car for auto loan
Be aware of auto loan pitfalls and save! 

 

Want to hear something scary? “The big mistakes are made in the financing office,” explains Phil Reed, senior consumer advice editor at Edmunds.com, the auto research website. “Making the right decisions can save thousands over the life of the loan.”

A car is a big purchase with a lot of moving parts. Dealers makes their profits between the gaps in buyer’s knowledge and they may try to confuse by unleashing lots of terms like “negative equity” and “origination fees.” Use these recommendations from experts to save thousands over the life of your car loan.

Don’t let the dealer define your credit score or credit “worthiness.”

Walk into the showroom with your credit report snugly in your back pocket. Otherwise, you run the risk that the salesperson leaves your negotiation only to come back with bad news about your credit. And of course that score isn’t high enough to get you the best rates. Who knows if he or she was checking your scores or playing a quick game of hacky sack? Dealers know that most consumers do not check their credit before being lured in by deals. Don’t make yourself vulnerable to this unethical treatment.

We discuss how to find your credit score easily in our previous blog post on rebuilding your credit (LINK). Just go to Annualcreditreport.com, fill out a few fields and your report arrives in you inbox instantly. Trust these results from the only free site authorized by the U.S. government’s Federal Trade Commission. Typically, anyone with a credit score of 720 or higher gets the lowest interest rates as they’ve demonstrated the most responsible money management. Still high 600s to low 700s is considered a “good” score. Those with lower scores can still get loans, but they will pay more in interest and fees.

Another way to check your credit is to get pre-approved from an outside lender like your bank or by applying for an online auto loan.  If you can manage to shave just 1 percent from your car loan, you’ll pay hundreds less over the next five or six years.  

Don’t make the wrong choice between a loan interest rate and a cash rebate.

Sure, the cash rebate feels enticing. And it might be the right choice if you use it to pay off other, higher interest loans like cash advances or credit cards. Basically, you need to decide if you want a lump sum up front or lower monthly payments over the next five or six years. Of course, not every car buyer is offered low-interest car financing, only those with the best credit scores. Again, know your score before you go to the dealership.

Don’t roll negative equity forward.

Some like to get new cars every two years. Often, they walk into the dealership with their auto loan “upside down.” That means they still owe more on the car than it’s worth. While those loving shiny new cars can get their next ride even if their loan is upside down, they’re putting themselves on a downward financial spiral.

Dealers don’t care what financial shape the car buyer puts themselves in. They will just add the negative equity–what you owe–into the purchase price of the new car. Chances are, this frequent buyer will just roll even more negative equity into the next new car, too.

Rather than enter this vicious cycle, consider buying a used car. A car loses much of its value in the first two years off the lot. And today, most cars are built to last 250,000 miles. Consider keeping the car longer and buying used to get the most for your car budget.

Don’t finance costly add-ons.

Just as movie theaters make most of their money on the popcorn, 37% of auto dealer’s profits come through aftermarket add-ons. These add-ons include  extended warranties, fabric protection and paint sealant and they are always less expensive from vendors other than the dealer. These costs feel like a no brainer when amortized over the life of the loan. The salesperson is quick to tell you that they add just a few dollars to every payment. Still, even $20 more over 60 payments is an additional $1200–real money.  

Don’t hesitate to question all fees.

With the deal wrapping up, a buyer’s guard is down. Salespeople know this well. The deal takes so long for a reason. It’s at the end that a salesperson may bring up unusual fees that may have official sounding names. Review all of the legitimate fees here and don’t hesitate to push the salesperson to drop anything that sounds suspicious.

A+ Rated First Financial Approves Auto Loans Up to $45,000

Better Business Bureau A+ rated First Financial has helped arrange over 1,000,000 auto loans, some with approved amounts of up to $45,000. We have loans for borrowers with all credit scores, even fair poor and bad credit. Take three minutes to apply here for a new or used car loan and get your answer fast!

 

Know these 2019 Auto Loan Trends Before You Buy a Car

aston martin with a good auto loan

There are some pretty sweet 2019 automobiles hitting the markets right now.

Acura redesigned their luxury compact RDX. Subaru is doing it’s Outback one better with its the 3-row Ascent SUV. Pickup trucks have been re-tooled as well. The compact Ford Ranger gets a sporty new design, and Chevy has modernized its powerful Silverado.

And then there are the high-tech features!

Internet connectivity, which sounded space-age just a few years ago now comes standard on many models. Apple CarPlay and Android Auto puts a range of entertainment and navigation options at drivers’ fingertips.

But before you let these new models and technological advances bewitch you, understand the trends in 2019 auto loans so you can get a deal.

Trend:  Slowing car sales

Why?:  Millennials and urban dwellers are avoiding buying cars because they find Uber and public transportation sufficient. Millennials also put less focus on material possessions reflect status. They are not enthusiastic buyers of cars OR homes.

For You:Car manufacturers and dealers will offer more incentives. Car prices will stay steady from 2018 to 2019.

Trend:  Lower loan origination fees

Why?:  Cloud processing, automated application review, and digitized documents mean dedicated, in-house loan analysts now have to get jobs at Subway. It also means lower labor costs for lenders.

For You: In the competitive auto loan market, lenders have to compete on price. Therefore, the buyer has more power to negotiate the 1% to 2% loan origination fee.

Trend:  Eight-year car loans

Why?:  Cars are lasting longer. Toyotas and Hyundais tend to get the most praise for working well after 200,000 miles.  According to autobytel.com, however, American models like the Chevy Impala and Buick LaCrosse hold up well into the 200,000 mile range as well. “Every new car today is built to last a quarter of a million miles,” explains Mike Calkins, AAA technical services manager. Taxi drivers brag that their Priuses make it to 600,000 miles!

For You: Car buyers who like to keep their cars for a long time can get more car for their budget with an 8-year car loan. While they’ll be in for more interest payments, using that money in other better-performing investments offsets auto loan interest costs.

Trend:  Rising interest rates

Why?:  With the economy thriving, the federal reserve has raised the federal funds rate eight times since the end of the Great Recession. It’s now at 2.25%. Most economist predict “The Fed” will bump rates up three more times in 2019 and then at least once more in 2020. With a federal funds rate at 3.25%, you bet the average auto loan cost will rise.

For You:   The tricky thing is, as happens with homes, when auto loan interest rates rise, car manufacturers tend to compensate with lower prices. They know about how much their consumers can spend each month on a car payment. Still, when you go into the dealership, don’t be surprised that the 1% interest rates have disappeared.

A+ Rated First Financial Cuts Auto Loan Costs to the Bone

Are you in the market for a new or pre-owned car? Better Business Bureau, A+ rated First Financial has auto loans for all credit types, even bad credit! Since 1996, we’ve helped arrange over 1,000,000 auto loans, some with approved amounts of up to $45,000. Take three minutes to apply here for a new or used car loan at the lowest rates!

3 American Trends to Consider Before Buying a New Car

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  Cars are synonymous with our nation’s coolness factor. Who can picture James Dean without his fancy driving skills in Rebel Without a Cause? And who can forget Vin Diesel showing off his motoring abilities in the Fast & the Furious franchise?

Many car owners have so much pride in their beloved vehicle that they even belong to fancy car clubs. The San Diego Mazda Miata Club started with just 11 members and has now grown to over 300 members.

Yes, Americans have always had deep affection for their cars … or at least they did. Recent auto industry research now indicates that only half of the millennials even bother to get their driver’s license by age 18. This is due to rapidly changing trends that have pervaded our culture recently, affecting our automobile purchasing choices.

So while the general population still longs for their dream car, these three popular American trends have changed its shape:

1.Cell Phone Dependence: With the overwhelming popularity of cell phones taking over just about every facet of our everyday life, it makes sense that today’s savvy car shoppers want an automobile that can fully utilize this device. As of 2015, many automobile makers, such as Volkswagen, Chevrolet, and Hyundai, are building their new models with Apple’s new connected-car application, called “CarPlay” (for Android cell phone owners, it’s called “Android Auto.”). This software on the dashboard makes it easier to safely interact hands-free with all of the features on your cell phone, eliminating the need for a blue tooth device. Many more car manufacturers are expected to utilize this technology in the coming years.

2. Safety Concerns: With the Internet and social media informing us of every tragic, scary, life-threatening event the moment it happens, Americans have become preoccupied with their own safety, and trying to protect it above everything else. Because of this mentality, cars have also come under pressure to provide ample safety features. Therefore, automobiles with excellent safety ratings and even driver assistance technology are essential to today’s car buyer. Whether it’s a blind spot monitoring system, a backup camera, or even a self-parking assist feature, all of these provide an added level of comfort and security to today’s cautious driver.

3. Caring for the Environment: Our culture is now preoccupied with taking care of our environment. Even Barak Obama has put his climate change action plan at the forefront of his presidential legacy. This trend means that when the next generation buys a car, they want to factor in its total carbon footprint. Big gas guzzler cars are waning in popularity in favor of smaller, economical cars that get excellent gas mileage. Electric cars are also on the forefront of this trend, as the Tesla and Prius brands’ skyrocketing car sales have proven.

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First Financial Provides Auto Loans, Whether You Have Good Credit or Bad Credit.
When you’re shopping for a car loan, remember that First Financial has been in business long enough to recognize the subtleties in each borrower’s financial situation. We also know that more than 50% of Americans fall into the subprime category, with credit ratings ranging from “fair” to “poor” to “bad.” Thankfully our lending partners accept auto loan applications and approve these types of borrowers every day, so apply for an auto loan here today. You can also follow us on Facebook to get frequent financial planning tips and research.

Getting Fair, Poor & Bad Auto Loans in 2014 Just Got Easier . . .

car dealership lot

Recently, credit tracking giant Experian broadcast some great news for those needing fair, poor and bad credit auto loans. Its Automotive Credit Trends Report[1] reveals that during the second-quarter of 2014 U.S. banks:

  • Approved 44% more bad credit auto loans than they did in the same period in 2013
  • Approved 22.4% more good, fair and poor credit auto loans than in in 2013

Banks are now more willing to lend to those whose credit scores dropped below “prime” or excellent . . . 700 or higher at this writing.

Before you start feeling thankful to the banks, however, keep in mind that this move is in their best interest as over 50% of all American consumers today fall into the “subprime” categories . . . namely good, fair, poor, and bad. To stay in business, the banks need to be more open-minded and “open the purse strings” more frequently. More, with unemployment still at historic highs, loan and car sales have been increasing but not at the rate a more robust recovery would create. Auto dealers and loan officers need customers! They need YOU, even if you have poor or bad credit.

 Tips for Getting Fair, Poor or Bad Credit Auto Loans

  • put at least 20% down, more if you can
  • consider a used car, even a one-year-old car. (Cars depreciate at least 20% in the first year alone. After that, depreciation slows.)
  • search the financial institutions that offer auto loans online. Internet banks have far lower marketing and overhead costs, and pass the savings on to the consumer. Their automated processes also help them keep fair, poor or bad credit auto loans interest rates affordable.

First Financial Has Fair, Poor and Bad Auto Loans that Make You Mobile!

While of course those in the prime or “excellent” credit category get the lowest auto loan rates, paying 7% to 10% or more for an auto loan still keeps reliable, attractive cars affordable. Ask a parent or grandparent what they paid for an auto loan at various times. Interest rates peaked in 1981 at 16% and only dropped under 10% as recently as 1997.[2] 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? Please “like” us on Facebook!

 


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