The concept of a Credit score is only a burden when you have Bad Credit.
Usually a score of less than 619 is considered low, as of last year the national average was 680.
Texas stands amount the States with the worst average of Credit score, with a low average of 650 points.
Not having the desired credit range can require additional fees and high interest rates, much more paperwork, and time wasted for the approval process. That is why it is very important to be very careful and responsible with this number.
Life happens and sometimes we forget the importance of Good Credit. In these cases, I would recommend that you find an advisor that can assist you with improving your score.
However, If you can’t afford an advisor, Follow these simple Do it Yourself steps to improve your credit score.
1. Check your Credit Score
Your priority is to find out where you stand financially. To find this infamous number, you can visit AnnualCreditReport.com. This site is updated by the 3 main credit reporting agencies in the USA
With this report, you can familiarize yourself with the problem causing accounts, any outstanding accounts you may have forgotten, or any account you may not be aware of. Once you have identified the problems, or the accounts that are affecting your credit score, The real work begins.
2. Prepare to start payment on Past due account
The finance history portion of the report is where you will find the information needed for this step. In the history you will be able to see who you owe money to, which accounts are past due, and how long they have been past due. Start by making a list of the accounts that are past due and adjust your current budget to start making payments on these accounts and be able to cover all your expenses perfectly.
3. Establish a payment plan
When it comes to payment history there is nothing better than making your payments on time. But lets be real, sometimes thats nearly impossible. However, making payments on time shows that you are responsible and dependable. Making sure that you catch up on your late payments and pay all current accounts it will positively reflect it on credit hist
4. Close any account that you do not use
It is never a good idea to have open unused accounts. Try to cut your accounts down to 2 credit cards and 2 loan account. It is always best to keep the accounts with longest account history. So close any unused accounts, it is pointless to keep an account open without using it.
5. Evaluate your income and your spending habits
I am going to repeat this again, There is nothing MORE important than being cautious with your credit. With that being said, avoid spending more than 75% of your income. Making sure that you do not spend more than you make will decrease your need to use your credit cards for everyday necessities. If you have credit cards try to keep your owed balance on the credit card at about 37% of the credit limit. If your balance is more than 37%, it reflects poorly on your credit history. If it is less than 37% it does nothing for your credit score, however at about 37% it reflects positively on your credit history. Lastly please make sure that you save money. A savings account will provide a cushion if a moment of crises arises, this way you won’t have to use credit cards to bail you out of emergencies.
6. Use a Bank Certified or Secured credit card
The use of this type of credit card is important to improve your credit history. This particular type of card is directly link to a bank account or savings account, the amount of money in the account connected to the credit card is used as collateral. This means that the money is already in your possession and you won’t spend money you do not have. Not everyone qualifies for this type of credit card, however if you start with a secured credit card and maintain a good payment history, you may build up your credit enough to qualify for an unsecured revolving account or what we know as typical credit card account.
7. Obtain a medium-term loan
Once you’ve proven your financial commitment and responsibility, attempt to get a Medium-term or Long-term Loan. A Long-term loan is one that has a prolonged repayment schedule like a home loan, an example of a medium-term loan is an Auto Loan.
In most cases people can rebuild their credit and get a second chance to do it right. Apply for these types of loans with the right lender, do not apply everywhere. If for some reason your loan application is denied, WAIT. Continue to nurture your credit score then try again a couple of months later. If your application is accepted make sure that you are cautious and careful and overall very responsible.
8. Be Responsible
When it comes to your credit score, there is nothing more important than your credit history, your credit history relies heavily on how responsible you are. It is critical not to spend more money than you make. Have a good understanding of what you need, and do not buy things you do not need. Lastly remember the importance of not living beyond your means, just because you made more money this year than you did last year does not mean you have to spend more money this year than last.
Follow these simple steps and you will be on your way to the credit score of your dreams.
You are rich, You have a huge income or you just won the lottery. Everybody thinks that if don´t have a new car you are rich. New cars are status symbols. They’re sexy and stylish and make you look and feel awesome as you drive them. I’m sure there is a huge surge of pride whenever a friend or colleague sees your car and asks about it or comments appreciatively. New cars also come with fewer problems and warranties to help in unexpected situations.
4 thing you should keep in mind:
A New Car Depreciates Faster
A New Car Means a Monthly Line Item
A New Car Means Higher Car Insurance
A Used Car Can Give You Greater Peace of Mind
We are an auto loan store, which means, we always try to help you finance any vehicle. Means that we certified every car that we sold because we offer solutions, you have to remember that we have included a limited warranty.
In the last months, we have had a lot of inquiries about trade-ins or refinancing, because people buy new cars and the monthly note is too high and then the car is cheaper than the debt that they have.
Revisit your filing status
Choosing the filing status that best suits your needs can influence the possibility of a refund. Your filing status determines:
Your standard deduction
Your filing requirements
The credits you are eligible to receive
The amount of tax you pay or the refund you receive
There are five statuses to choose from, but the three most common are: married filing jointly, married filing separately, single, and head of household. TurboTax can help you determine which choice most benefits your situation.
Claim the earned income tax credit
Working families, individuals, people who are self-employed and others who have a moderate to low income may qualify for the earned income tax credit. The EITC decreases the amount of taxes owed and may qualify you for a tax refund. To qualify, you must:
Have a valid Social Security number
Be a U.S. citizen, a year-long resident alien or a non-resident alien married to an American citizen or resident alien filing jointly
Have income from self-employment, from an employer or from working on a farm
Not be a claimed dependent or child of another person
Have a qualifying child and be between the ages of 25 and 65, living in the U.S. for at least half the year
To receive the EITC you must file a tax return, even if you owe no taxes.
Include the dependent care credit
The child and dependent care credit is based on a percentage of the amount you paid for the care of a qualifying child or dependent. The total expenses you can claim are capped at $3,000 for one eligible individual and $6,000 for two or more. If your employer offers dependent care benefits, you are required to deduct this amount. A qualifying individual is:
Your child who is under 13 years of age
A dependent who is physically or mentally incapable of self-care and who lives with you for more than half the year, or
Your spouse who is incapable of self-care and lives with you for more than half the year
To claim the credit, other criteria must be met.
If you’re married, you are required to file a joint return.
You can’t use a caregiver who is a spouse or parent of the child, your child under 19 years of age or another of your dependents.
Each qualifying dependent and child must have a Social Security number added to your return.
You must provide the name, address and Social Security number of your caregiver.
We have a really simple process for you. We try to make your buying experience simple in the less time possible. We understand that buying a used car is painful and takes time, that is why we try to make it simple and fast.
If you want to spend less time at our dealership you should have all your documentation ready and in order.
What we Require:
1. ID, That can be a Texas Driver Licence, Texas ID, Passport or another form of ID issued from the country of origin, like a registration number.
2. POR, that means, Proof of Residence, We need at least 2 bills with your name on it and the actual address. That can be an invoice or bill of any service you use, Water, Gas, Mobile phone, Cable, Credit Card Statment.
3. POI, that means, Proof of Income, We need at least 3 monthly history of what you receive. That can be pay stubs, check stubs, bank statements, job letter of your employer.
Gather all the documents, photocopy them and bring it to us, fax it to us or send it to us by email, so we can start processing your application.
When you arrive at our location, we need you to fill up our credit application, you can fill it online also.
While we take all of Your information to our finance department, we can test drive the vehicle that you like.
In less than an hour, our finance department should give you a pre-approval and will explain your opportunities.
If everything it is ok, We will sign the documents, if for some reason you don’t qualify, We will tell how to.
Every time a customer walks into our store we get all kind of stories about their credit score. It is important to know that the credit score is really important and you should take care of it.
There is no way to fix a bad history report, it takes time and effort, a lot of effort. The keyword in fixing your credit is “Responsibility”, you have to manage it responsibly over time, with time you will return to an acceptable level.
3 Important Things You Can Do Right Now
Check Your Credit Report
Credit score repair begins with your credit report. If you haven’t already, request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your credit score and it may contain errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts are correct. If you find errors on any of your reports, dispute them with the credit bureau.
Setup Payment Reminders
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
Reduce the Amount of Debt You Owe
This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.
GAP insurance is something that just a few people understand, that some people may need, but when you are buying a used car or a financed auto you definitely want.
What Is Gap Insurance?
Gap insurance covers the “gap” between what your insurance company will pay out and the amount of money you owe on your car loan in the event of a total loss. When you buy a car, the retail price that you pay is greater than the vehicle’s resale value. On top of that, if you financed your car, you likely bundled additional costs into your loan that you cannot recoup, including sales taxes, title fees, emission fees, and registration.
Depending on how much of a down payment you put on your car, you may immediately be upside down on your car loan the moment you drive off the lot. That position can then be greatly exacerbated should your car get totaled, in which case you will get less money from your insurance company than you still owe on your car loan.
Say you buy a vehicle for $27,000 with $2,000 down. Shortly after purchase, it might only be worth $18,000 to $19,000 by insurance company calculations, based on factors including the car’s condition, price surveys, and industry guides such as Kelley Blue Book.
Therefore, if you destroy your vehicle and get the maximum insurance payout via collision coverage, you might still end up with a $7,000 loan balance and no car!
Do You Need Gap Insurance?
Of course, not everyone needs gap insurance. But there are some key instances where gap insurance can play a crucial role in your financial well-being:
If you finance a car with a high rate of depreciation, you can benefit from purchasing gap insurance. Most vehicles swiftly depreciate, but some cars depreciate very rapidly.
If you have financed your vehicle for more than 4 years, gap insurance may offer you some additional protection in the event of a total loss. A shorter financing period improves your loan-to-value ratio. In other words, the “gap” between what you owe on your car and what it’s worth will narrow and disappear much sooner with a short-term loan than it would with a long term loan.
If your down payment was less than 20%, you may owe more than your car is worth. If your car is totaled or stolen, gap insurance can help you pay off the balance of the loan.
If you rolled a loan balance from another car into the loan, gap insurance can prove beneficial in the event of a total loss.
You may be required to purchase gap insurance if you are leasing a vehicle.
If you drive more than the average 15,000 miles annually, you can benefit from purchasing gap insurance. Cars with high mileage depreciate more quickly than other cars.
If you are a single car family, you probably cannot afford to be without a car for any period of time. Gap insurance coverage helps indemnify your family in case of a total loss.
Essentially, you do not need gap insurance if you are certain that your loan-to-value amount will not leave you with an upside down car loan in the event of a total loss.
How Much Does Gap Insurance Cost?
The typical gap insurance rate is roughly 5% of the portion of your annual insurance premium related to comprehensive and collision coverage. These rates can vary a great deal based on car value, location, and driver history.
For example, if you pay a $600 annual premium toward comprehensive and collision insurance, your gap insurance will likely be around $30 a year.
With time the oil inside your car engine becomes thinner and it gets dirty, so it does not lubricate making it harder for a motor to work the way it supposed to do.
The oil makes an engine cleaner, so it has more efficiency, avoiding corrosion so the pieces inside don’t wear out. Oil is the main coolant of the engine parts, if the heat goes up, the pieces won’t melt. The oil deposits a chemical film that isolates the engine parts from the water making the engine protected from the fungus produced by moisture.
You should change it every 3,000 miles or 3 months if it is mineral, and every 5,000 or 5 months if it is synthetic.
It is really easy for yourself to check if you need an oil change, without any warning lights on the dashboard, is when observing the dipstick, check for the oil is very black, very dense or drips very fast, like water. And please don’t ignore the warning lights on your dashboard.
The advantages of maintaining an adequate lubrication are: the useful life of the engine is extended and its components are kept clean. Otherwise, accumulated dirt clings to the cylinder head like a thick, black grease film that can not be removed easily.
Here in Houston, every body drives if you don’t have a car there is nothing you can do, that’s why the automotive industry of pre-owned cars is huge. Let me tell you, there are over 4,500 dealers in the area, most of them are dealers or used cars, so the competition is very aggressive.
That is why you have to verify, check and feel comfortable with your shopping process. Here are 4 points you should use when you are buying a used car.
Check the Dealership online
Before you go to the Dealership, you should research it online, look for reviews, look the inventory and check the reputation. Check if the Dealer is Certified or not.
Have all your Documents Ready
Every Dealer Needs Documentation, you probably have to fill a credit application, have an ID, have proof of residence and proof of income.
You Don’t Need to be at the Physical Location to run Your Process
You can send all the documentation, so the Dealer can prerun your application with all the information you already sent.
Check the Cleanness and do a Test Drive
When you arrive at the dealership, check everything, the personnel, the lot, the cars, the cleanness of the vehicle you want to buy, the smell of the i9nterior, the cleanliness of the motor and obviously do a test drive, see how you feel it, check all the warning lights, hear the motor, feel the transmission, push every button to see that is working.
Don’t get Push Around
Tell them you have a certain time to do the deal, don’t get in the war of money, with the down payment, with the monthly bill. keep straight, tell them what you have and how much you want to spend at the beginning and every month.
In a recent study, we found out that the top used vehicles sold in our city of Houston are the trucks, but you will see that there are others that came to our surprise.
The Ford F150 and the Chevy Silverado are number one and number two on our list, but in our study, we found out that the Japanese cars took the number three, four and five of our list, that’s the Honda Accord, Toyota Camry, and Nissan Altima, Then again the Dodge Ram 1500 claim the six spot.
Tha American cars keep losing places in the list of most sold, that’s because they were for several years the number one place in the nation.
With the event of hurricane Harvey, the market expanded for only two months, even so, the city lost over a million cars in the flood, but not everybody went out and replaced their vehicle, they are waiting for the tax season.
The price of the trucks varies so much, depending on the miles and year. Trucks are made for strong drivers and for work, then all the dealerships franchise and independent will keep selling the kind of vehicle because you have to remember that if you don’t have a vehicle in Houston you are nothing.
|Texas Rank||vs. Rank in US||Texas||Type||US Rank||United States||Type|
|1||5||Ford F150||Truck||1||Honda Accord|
|2||8||Chevrolet Silverado||Truck||2||Toyota Camry|
|3||1||Honda Accord||3||Nissan Altima|
|4||2||Toyota Camry||4||Honda Civic|
|5||14||Dodge Ram 1500||5||Ford F150||Truck|
|6||3||Nissan Altima||Truck||6||Chevrolet Impala|
|7||6||Chevrolet Impala||7||Toyota Corolla|
|8||4||Honda Civic||8||Chevrolet Silverado||Truck|
|9||9||Chevrolet Malibu||9||Chevrolet Malibu|
|10||7||Toyota Corolla||10||Ford Explorer||Truck|
|11||11||Ford Focus||11||Ford Focus|
|12||18||Ford Mustang||12||Ford Taurus|
|13||10||Ford Explorer||Truck||13||Hyundai Sonata|
|14||27||Chevrolet Tahoe||14||Dodge Ram 1500||Truck|
|15||25||Ford Expedition||Truck||15||Jeep Grand Cherokee|
|16||12||Ford Taurus||16||Nissan Sentra|
|17||19||Ford Fusion||17||Ford Escape|
|18||13||Hyundai Sonata||18||Ford Mustang|
|19||16||Nissan Sentra||19||Ford Fusion|
|20||17||Ford Escape||20||Hyundai Elantra|
Set a Budget
Before you can start used car shopping, you should figure out your budget.
Keep all your other monthly expenses in mind, such as:
Rent or mortgage.
Phone and Internet bills.
Student loans/other debts.
If your monthly budget is mostly spent after taking care of necessary bills, it may be more prudent to keep your car payments on the lower side.
Used Car “Hidden” Costs
Owning a vehicle entails more than paying for the vehicle itself. There will be costs associated with your used car other than your monthly auto payment, such as:
Your car insurance rate.
Various taxes and fees.
Your car’s depreciation rate.
Gas, oil changes, and other maintenance.
Don’t forget to keep these factors in mind when determining your used car budget.
Narrow the Search
Once you have a solid idea of how much money you can spend on your used car, you can start determining which type of car within that price range will be the best option for you.
Certified pre-owned (CPO) vehicles—The purpose of CPO programs is to alleviate concerns about the condition of a non-new vehicle. Still, the inspections, repairs, and warranties involved in each program vary greatly. Be honest with yourself, and separate the features you need in your car from the features you simply want.
Shop for a Used Car
You know what you want and how much you can spend, so now it’s time to figure out where to find this vehicle. There are a few methods to find the best used car near you.
If you love to do research or have a decent amount of car-related knowledge, you may have good luck looking for a used car on websites like Craigslist.
Peer-to-peer car buying and selling websites are another option. These sites essentially act as a middleman between buyer and seller. The process is similar to using Craigslist, but sales are typically more regulated by the website.
There are other less active online options, as well. Many websites will offer used car listings, which will allow you to search for vehicles based on factors like:
Proximity to you.
Of course, there are other ways to track down used cars for sale, including:
Used car lots.
Used sections of a car dealership.
Newspaper or magazine classified ads.
These methods typically involve more legwork but may be a good option to find deals that a buyer only using the Internet might miss.