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Debt Ratios and Their Impact on Your Financial Health
Navigating debt can feel overwhelming due to various terms and figures like interest rates, credit scores, and fees. Among the more confusing concepts are the debt-to-credit ratio and the debt-to-income ratio. While they may sound similar, they serve different functions and are essential to understanding your financial well-being. Let’s explore what each of these ratios…
A Guide to Dealerships with In-House Financing
When it comes to purchasing a new or used vehicle, navigating financing options can often be the most daunting aspect of the process. Thankfully, in-house financing at dealerships is gaining popularity as a feasible solution for many buyers. But what does in-house financing really mean, and is it the right choice for you? Let’s explore…
4 Great Reasons to Buy a Used Car
If your current car is on its last leg or you’ve been without one for a while, you may feel it’s time for a replacement. Before rushing to buy something new, it’s worth considering the benefits of purchasing a used car. Here are four compelling reasons why buying used might be the smarter choice: 1….
How Credit Inquiries Impact Your Credit
To understand how credit inquiries affect your credit, it’s important to distinguish between “soft” and “hard” pulls. Both types can influence your credit health and eligibility for favorable financing, though they affect your credit score in different ways. Let’s explore these differences and their effects on your credit profile. What Are Credit Inquiries? Credit inquiries…
Understanding Credit Scores and How They’re Calculated
Your credit score is crucial when applying for an auto loan, influencing both approval chances and the interest rate offered. But what exactly is a credit score, and how is it calculated? What is a Credit Score? A credit score is a three-digit number that indicates your creditworthiness based on your financial history. Essentially, it…
How to Fix Your Credit
Fixing your credit may feel overwhelming, but taking control of your financial health can lead to lasting benefits. Here are ten key steps to help rejuvenate your credit: Step 1: Review Your Credit Report Begin by obtaining your free credit reports from Experian, TransUnion, and Equifax via AnnualCreditReport.com. Regularly reviewing your reports helps you stay…
What is an IRA?
When exploring auto loans, it’s essential to consider tools that can shape your financial future, like the Individual Retirement Account (IRA). An IRA can impact not just your retirement but also your ability to secure favorable terms on an auto loan. Here, we’ll explore what an IRA is and how it may affect your auto…
What is APR?
When financing your dream car, understanding the basics of auto loans is essential, especially the Annual Percentage Rate (APR). Often misunderstood, APR is a key factor that determines the true cost of your auto loan. In this article, we’ll explain APR and its importance in auto financing. What is APR? APR, or Annual Percentage Rate,…
What’s in a Credit Report and Why It Matters
When applying for an auto loan, lenders place significant weight on your credit report. This detailed record of your financial history helps determine your loan eligibility and the terms offered. Here, we’ll break down what’s in a credit report and why it matters for auto financing. Understanding Your Credit Report Your credit report, compiled by…
Why Your Debt-to-Income Ratio Matters
Your debt-to-income (DTI) ratio is a crucial factor in qualifying for financing and determining the interest rate you’ll receive. Lenders assess this ratio to gauge your financial health and your ability to handle additional debt. Here’s why your DTI ratio is essential for auto loans and how you can improve it to boost your chances…
How to Buy a Car with Bad Credit
Buying a car with bad credit can be daunting, but it’s not impossible. With a thoughtful plan and strategic steps, you can increase your chances of securing a loan that works for you. Here’s how: Step 1: Assess Your Credit Standing Start by reviewing your credit report. It’s essential to understand your current situation and…
5 Tips for Improving Your Credit
Building and maintaining a strong credit score is crucial for making major purchases, such as a car or home. Here are five key steps to help you improve your credit score: 1. Establish a Budget Creating and sticking to a budget is vital for managing debt. Plan monthly expenses carefully and prioritize paying off as…
Should You Rent-To-Own a Car?
In today’s financial climate, finding cost-effective and flexible car ownership options is more important than ever. Rent-to-own (RTO) programs are common for items like furniture and appliances, but did you know you can also rent-to-own a car? This option allows you to make weekly payments until the car is fully paid off. While it might sound appealing…
Getting an Auto Loan While Self-Employed
Being self-employed often comes with the allure of setting your own schedule, dressing casually, and breaking free from the traditional work environment. Whether you’re involved in the gig economy, freelancing, or starting your own business, there are many perks to this lifestyle. However, one challenge self-employed individuals frequently face is the difficulty of securing loans. Establishing…
Credit Inquiries: Hard vs. Soft
Your credit score is influenced by various factors, including your debt, payment history, and credit mix. One area that often causes confusion is how credit inquiries affect your score. You may have heard that checking your credit can hurt your score, but it’s more nuanced than that. Let’s break it down. Types of Credit Inquiries A credit…
The Role of a Cosigner in Strengthening Your Loan Application
If your credit isn’t as strong as you’d like or you’re struggling to qualify for a loan, a cosigner can make a significant difference. In lending, a cosigner serves as a financial backup, promising to cover the loan if you’re unable to make payments. Lenders evaluate the cosigner’s credit history, employment status, and income, much…
How to Handle Negative Equity in Your Auto Loan
Have you ever come across terms like “upside down,” “underwater,” or “negative equity” in reference to loans? These all describe the same situation—owing more on a loan than the asset is worth. Although it’s not an ideal situation, it’s actually quite common, particularly with cars and homes. In this post, we’ll break down what negative…
How Car Loans Can Boost Your Credit Score
Improving your credit score is key to unlocking better financial opportunities. One effective strategy for doing this is by responsibly managing a car loan. Paying off a car loan not only gives you full ownership of the vehicle, but it can also significantly enhance your credit score. Below, we explore how car loans influence your credit…
7 Surprising Credit Killers
A wide range of factors can impact your credit score. Some are obvious, like timely loan repayment, but others are less well-known and can still damage your credit. Below are some commonly overlooked credit pitfalls: Unpaid Parking Tickets While parking tickets may seem like minor annoyances, ignoring them can lead to serious consequences. If left…
Bankruptcy Doesn’t Mean Bad Credit Forever
Facing bankruptcy can feel like standing at a crossroads, with many individuals worrying about the long-term effects on their credit report. The reality is that while a bankruptcy filing can lead to a significant drop in your credit score, it does not have to be a permanent setback. There are proactive steps you can take…
7 Recommendations for Getting a Car Loan with Bad Credit
In today’s economic climate, it’s common for people to face credit challenges, making auto loans harder to obtain. But poor credit doesn’t mean you can’t get a car. With the right approach and planning, you can secure an auto loan. Below are seven strategies to help you get a car loan, even with bad credit….
8 Suggestions For Getting A Car Loan With Bad Credit
In the current economic landscape, many individuals have seen their credit scores take a hit due to challenging circumstances (thanks COVID!). Consequently, many find it difficult to qualify for essential credit products, like auto loans, making it harder to secure a car. However, having poor or bad credit doesn’t mean you’re stuck taking the bus…