t is not a must to have perfect credit rating to get a loan these days. You can find many lenders extending bad credit car financing. You just need to seek them out and learn what you can do to improve your chances of acceptance.
There are lenders who are excellent in dealing with any kind of credit problem. You can approach such lenders and they can help you get a loan with reasonable terms. You might face rejection from quite a few dealerships but these lenders are very knowledgeable and have the ability to get your loan pushed through.
Do not allow dealer to pull your credit, this is a big mistake. You should find a lender who you trust and let him handle your credit issues regularly. Do not allow a lot of dealer to peek at your credit. The more people that inquire into your credit report, the worse it looks to lenders. You should be well aware of your credit report and have a copy of it.
You can discuss about your credit issues with people you trust and who can guide you. But do not let every other person to look at your report. Make sure you have your report pulled by someone who may have a car you are willing to buy else it would hurt your report.
You need to think smart and work around ways to obtain bad credit car financing. It is not very difficult but can be stressful at times. Finally do not forget to trade in. A car that seems of no use can help you get a lower interest rate.
Sunday, 13 March 2011
Auto Finance Companies Now Offer You Car Loan Packages
For most people, the purchase of a vehicle through immediate payment is next to impossible. Fortunately though, you can find auto finance companies that specialize in giving car loan financing plans with the intention that everyone might get the car that they've always wanted.
It is the dream of plenty of people to own a car. Mostly every working person would love to own a car, one which they'll use to travel to work to, something he or she can use on a night out of town, something they could drive their loved ones in, just something they can drive around in everyday. A vehicle is likewise the mark of any individual's personal and professional achievement. Above all,it's a symbol of liberty, of the freedom of being capable of go wherever you intend to go, and never be confined by commuting schedules and the restrictions of public transport. Which isn't to suggest that public transportation is restrictive; no, it's simply that a car can present you with more personal freedom in regards to traveling.
For the average person however, a car can certainly be a purchase. The average worth of a car can run into thousands of dollars, and with the recent financial recessions of the past several years, purchasing one can sound impossible when using the average worker's salary. Thankfully though, there are now numerous auto finance companies that specialize in car loan financing, the goal of which would be to assist the average individual get a car, without the need to immediately pay money for the whole amount of the automobile.
People may get car loan financing plans from numerous sources, but three of them stick out the most. These include retail banks, auto finance sub companies that actually work for auto manufacturers themselves, and specialist auto finance companies solely focused on providing consumers with car loan financing packages. Auto financing companies are much more liked by people thinking about buying a car, given that they have more experience and also have good working relations with all the different auto manufacturers. Many businesses provide car loan financing plans to their employees, but instead of the employees purchasing their cars outright with subscription to the plan, the company retains ownership of the vehicle and leases it long-term to the employee.
The most famous car loan financing providers, however, are definitely the companies who specialize solely auto financing packages. There are plenty of these established companies nowadays, and consumers simply have to pick which one they would like to do business with.
An organization that specializes in car loan financing will offer consumers financial packages that may assist them to acquire automobiles with no need to cover the whole amount of the automobile straightaway. Instead, these packages enables the consumer to pay for the car gradually, usually in installment payments over a period of years, depending on the type of auto finance plan they subscribed to.
Additionally, you can find companies now that specialize in auto finance for bad credit. Many people today have earned poor credit ratings because of some circumstance in their financial history. This poor credit rating will reflect negatively on their future financial transactions and will also prevent them from getting car loan financing. Fortunately though, there are companies that focus on getting auto finance for bad credit rating individuals. These companies are experienced with these types of circumstances and will help a person with bad credit get approved for an auto finance plan. This way, just about everyone can get the dream of owning their own automobiles within reach.
It is the dream of plenty of people to own a car. Mostly every working person would love to own a car, one which they'll use to travel to work to, something he or she can use on a night out of town, something they could drive their loved ones in, just something they can drive around in everyday. A vehicle is likewise the mark of any individual's personal and professional achievement. Above all,it's a symbol of liberty, of the freedom of being capable of go wherever you intend to go, and never be confined by commuting schedules and the restrictions of public transport. Which isn't to suggest that public transportation is restrictive; no, it's simply that a car can present you with more personal freedom in regards to traveling.
For the average person however, a car can certainly be a purchase. The average worth of a car can run into thousands of dollars, and with the recent financial recessions of the past several years, purchasing one can sound impossible when using the average worker's salary. Thankfully though, there are now numerous auto finance companies that specialize in car loan financing, the goal of which would be to assist the average individual get a car, without the need to immediately pay money for the whole amount of the automobile.
People may get car loan financing plans from numerous sources, but three of them stick out the most. These include retail banks, auto finance sub companies that actually work for auto manufacturers themselves, and specialist auto finance companies solely focused on providing consumers with car loan financing packages. Auto financing companies are much more liked by people thinking about buying a car, given that they have more experience and also have good working relations with all the different auto manufacturers. Many businesses provide car loan financing plans to their employees, but instead of the employees purchasing their cars outright with subscription to the plan, the company retains ownership of the vehicle and leases it long-term to the employee.
The most famous car loan financing providers, however, are definitely the companies who specialize solely auto financing packages. There are plenty of these established companies nowadays, and consumers simply have to pick which one they would like to do business with.
An organization that specializes in car loan financing will offer consumers financial packages that may assist them to acquire automobiles with no need to cover the whole amount of the automobile straightaway. Instead, these packages enables the consumer to pay for the car gradually, usually in installment payments over a period of years, depending on the type of auto finance plan they subscribed to.
Additionally, you can find companies now that specialize in auto finance for bad credit. Many people today have earned poor credit ratings because of some circumstance in their financial history. This poor credit rating will reflect negatively on their future financial transactions and will also prevent them from getting car loan financing. Fortunately though, there are companies that focus on getting auto finance for bad credit rating individuals. These companies are experienced with these types of circumstances and will help a person with bad credit get approved for an auto finance plan. This way, just about everyone can get the dream of owning their own automobiles within reach.
What Are No Credit Car Loans and How Do You Get Them?
With the handful of credit car loans that continuously grow in number these days, it is easier now to get a car loan that is applicable to your situation. Many of these car loan businesses have flexible terms, which comply according to your financial status, making vehicle financing easier for anyone than ever before.
What are the different types of vehicle loans? What are no credit car loans? What are zero credit auto loans? How are each different or similar to other types of financing?
There are many terms about car financing which you need to educate yourself with. In order to accomplish the first task, allow yourself to learn several definitions of terms that are generally related to car loans. You may find useful websites that provide such information to prospective car buyers and dealers.
One site claims that no credit automotive loan is the least risky and is actually the most reliable type of auto loan. The idea is basically making the car you are going to buy as the collateral itself. There is no other better option for you than this. As well, when you set off to buy a car with no credit at a buy here pay here car lot or even private party, it is yet your first step towards rebuilding your credit history.
As you may already be aware, getting a vehicle loan comes with so many requirements such as important documents that directly reflect your source of income. Of course, it is not that big of a deal if you have them ready on hand. How about if you do not possess any or one of the important documents, such as credit history? Would you still be able to purchase a car through loan? There are indeed more questions about the ubiquitous: what are no credit car loans?
Once no credit loan becomes your record for future financial transactions in car dealings and purchases, dealers and managers might even commend you for taking the level up. Sooner or later, you will eventually obtain some credit, therefore, this first step is quite vital.
Check on some websites that offer free assessment of your application for no credit automotive car loan. While you are at it, why not address them some questions on your mind even from as basic as 'what are no credit car financing?' to 'how many loans could you make at the same time?'. Usually, these business firms would be willing to walk you through the whole thing, considering that you are trying to get a vehicle financed for the first time.
Seek counsel from your friends and family alike, as they may have a plethora of information and what not too, about the actions you are about to take.
What are the different types of vehicle loans? What are no credit car loans? What are zero credit auto loans? How are each different or similar to other types of financing?
There are many terms about car financing which you need to educate yourself with. In order to accomplish the first task, allow yourself to learn several definitions of terms that are generally related to car loans. You may find useful websites that provide such information to prospective car buyers and dealers.
One site claims that no credit automotive loan is the least risky and is actually the most reliable type of auto loan. The idea is basically making the car you are going to buy as the collateral itself. There is no other better option for you than this. As well, when you set off to buy a car with no credit at a buy here pay here car lot or even private party, it is yet your first step towards rebuilding your credit history.
As you may already be aware, getting a vehicle loan comes with so many requirements such as important documents that directly reflect your source of income. Of course, it is not that big of a deal if you have them ready on hand. How about if you do not possess any or one of the important documents, such as credit history? Would you still be able to purchase a car through loan? There are indeed more questions about the ubiquitous: what are no credit car loans?
Once no credit loan becomes your record for future financial transactions in car dealings and purchases, dealers and managers might even commend you for taking the level up. Sooner or later, you will eventually obtain some credit, therefore, this first step is quite vital.
Check on some websites that offer free assessment of your application for no credit automotive car loan. While you are at it, why not address them some questions on your mind even from as basic as 'what are no credit car financing?' to 'how many loans could you make at the same time?'. Usually, these business firms would be willing to walk you through the whole thing, considering that you are trying to get a vehicle financed for the first time.
Seek counsel from your friends and family alike, as they may have a plethora of information and what not too, about the actions you are about to take.
How Many Steps Are You From Getting Car Finance?
5 Steps for Getting Car Finance
Getting approved for finance can be an easy process made harder by being under prepared. Many people will end up disappointed - missing out on the car they wanted because another buyer got the money quickly.
Here are 5 steps that will make the process run smoothly and get you to settlement quicker.
Step 1) Find a Car: If you have found the car of your dreams that's great, if you haven't don't stress but at least have an idea, finance company final approvals are based on the vehicle you buy so if you find a similar model for your first approval it won't pose a problem if you end up getting a slightly different car.
Step 2) Be Prepared: It doesn't matter which lender you use they are all going to want to know allot about you before they hand over their cash. So make sure you have all your information on hand, this often includes drivers license numbers, details about your address (and possibly previous residences), your employers details and also any information about previous borrowing, if you have a partner on the loan you will need to have their information and they will need to be prepared to answer questions as well.
Step 3) Be Available: The lender may require you to send in some documentation, the only hold up at this stage is YOU. Make sure that you have access to a fax or scanner to get this to the lender and that if you are needed to sign the documents that you are available.
Step 4) Read Carefully: Make sure you read the documents carefully and I don't just mean the small print, the documents are a legal document and you need to sign and date in the correct places or new documentation may need to be drawn up.
Step 5) You're Approved: You've got the finance approval you know how much you can borrow, now you need to ACT NOW, find the exact car you want (if you hadn't already) use the approval to bargain with the seller, they will have to provide the finance company with certain documents, collect these, get them to the lender and the next step is settlement.
It can be an easy or hard process depending on how you react to the requirements of the lender, ignore these steps and it could more than a week or you can follow these steps and you will be amazed how quick it can be.
Getting approved for finance can be an easy process made harder by being under prepared. Many people will end up disappointed - missing out on the car they wanted because another buyer got the money quickly.
Here are 5 steps that will make the process run smoothly and get you to settlement quicker.
Step 1) Find a Car: If you have found the car of your dreams that's great, if you haven't don't stress but at least have an idea, finance company final approvals are based on the vehicle you buy so if you find a similar model for your first approval it won't pose a problem if you end up getting a slightly different car.
Step 2) Be Prepared: It doesn't matter which lender you use they are all going to want to know allot about you before they hand over their cash. So make sure you have all your information on hand, this often includes drivers license numbers, details about your address (and possibly previous residences), your employers details and also any information about previous borrowing, if you have a partner on the loan you will need to have their information and they will need to be prepared to answer questions as well.
Step 3) Be Available: The lender may require you to send in some documentation, the only hold up at this stage is YOU. Make sure that you have access to a fax or scanner to get this to the lender and that if you are needed to sign the documents that you are available.
Step 4) Read Carefully: Make sure you read the documents carefully and I don't just mean the small print, the documents are a legal document and you need to sign and date in the correct places or new documentation may need to be drawn up.
Step 5) You're Approved: You've got the finance approval you know how much you can borrow, now you need to ACT NOW, find the exact car you want (if you hadn't already) use the approval to bargain with the seller, they will have to provide the finance company with certain documents, collect these, get them to the lender and the next step is settlement.
It can be an easy or hard process depending on how you react to the requirements of the lender, ignore these steps and it could more than a week or you can follow these steps and you will be amazed how quick it can be.
Ford Car Leasing - The Options
I have been looking for a new car for a while, and a Ford car is looking like a good choice but I need to consider the personal Ford car leasing options that available as I can't afford to buy a car outright.
FordCredit is the manufacturers own finance arm and is one of the world's biggest automotive finance companies. They have finance plans to cater for a variety of needs, and the expertise to help me choose the right option, so I am sure I will find a package that suits my requirements.
Ford Options is a personal contract purchase plan, where I can choose to 'renew', 'return' or 'retain' my Ford car at the end of the agreement. All cars will have a Guaranteed Minimum Future Value (GMFV) so I don't need to worry about the cars value falling by the end of the agreement. I can spread the payments out over 24, 30 or 36 months too, so I can pay what I can afford each month and as the repayments are fixed and regular there won't be any nasty surprises.
If I fancy a new car at the end of the agreed contract I can choose to renew by trading the car in at my local Ford Dealer, or privately once the money have been squared up. Any excess monies over the GMFV can be used as a deposit for a new car. There is the opportunity to renew before the end of the agreement to if I see another Ford car I like the look of, but I will have to settle the remaining balance first which is not ideal.
I can also return the car at the end of the agreement, with no more to pay as long as the dealer deems that the car meets 'fair wear and tear standards' and provided I have not exceeded the agreed mileage. If I decided I want to keep it I can pay the GMFV and purchase fee and its all mine! Luckily the FordCredit will make contact way before the agreement is up so I'll have time to decide what I want to do.
So that's the Ford Options agreement, so what's the Ford Options Cashplan? It's very similar to the Options agreement in that you have a GMFV and the options to renew, return or retain you car, but you don't have regular installments to pay, which is fine as long as you are good at planning your finances. The Ford Options Cashplan can be taken out over 12, 24 or 36 month terms, as opposed to 24, 30 or 36 months for the regular Ford Options agreement.
The last Ford car leasing option is Ford Acquire, a traditional hire purchase plan where at the end of the agreement you will own the car as long as all payments have been cleared. It is probably the most flexible of the finance agreements, as repayments can be paid over anything from 12 to 60 months in installments that suit you.
Personally I think the Ford Options plan will suit me best, I have a regular wage and by paying a fixed amount each month I can budget better. Whichever Ford car leasing agreement suits you though its handy to know you can access account services online so there is always help just a click away!
FordCredit is the manufacturers own finance arm and is one of the world's biggest automotive finance companies. They have finance plans to cater for a variety of needs, and the expertise to help me choose the right option, so I am sure I will find a package that suits my requirements.
Ford Options is a personal contract purchase plan, where I can choose to 'renew', 'return' or 'retain' my Ford car at the end of the agreement. All cars will have a Guaranteed Minimum Future Value (GMFV) so I don't need to worry about the cars value falling by the end of the agreement. I can spread the payments out over 24, 30 or 36 months too, so I can pay what I can afford each month and as the repayments are fixed and regular there won't be any nasty surprises.
If I fancy a new car at the end of the agreed contract I can choose to renew by trading the car in at my local Ford Dealer, or privately once the money have been squared up. Any excess monies over the GMFV can be used as a deposit for a new car. There is the opportunity to renew before the end of the agreement to if I see another Ford car I like the look of, but I will have to settle the remaining balance first which is not ideal.
I can also return the car at the end of the agreement, with no more to pay as long as the dealer deems that the car meets 'fair wear and tear standards' and provided I have not exceeded the agreed mileage. If I decided I want to keep it I can pay the GMFV and purchase fee and its all mine! Luckily the FordCredit will make contact way before the agreement is up so I'll have time to decide what I want to do.
So that's the Ford Options agreement, so what's the Ford Options Cashplan? It's very similar to the Options agreement in that you have a GMFV and the options to renew, return or retain you car, but you don't have regular installments to pay, which is fine as long as you are good at planning your finances. The Ford Options Cashplan can be taken out over 12, 24 or 36 month terms, as opposed to 24, 30 or 36 months for the regular Ford Options agreement.
The last Ford car leasing option is Ford Acquire, a traditional hire purchase plan where at the end of the agreement you will own the car as long as all payments have been cleared. It is probably the most flexible of the finance agreements, as repayments can be paid over anything from 12 to 60 months in installments that suit you.
Personally I think the Ford Options plan will suit me best, I have a regular wage and by paying a fixed amount each month I can budget better. Whichever Ford car leasing agreement suits you though its handy to know you can access account services online so there is always help just a click away!
Why You Should Consider Bankruptcy Car Loans
It is not uncommon for people to often find themselves in debt or other financial difficulties just when they need to purchase a much-needed asset. If you find yourself in such a situation, and have been patiently waiting for years to buy your dream car, you are probably struggling to find a way to make this dream come true. This is especially true if you have been in bankruptcy at some point. You can now put those worries to rest as you have the option of taking out bankruptcy car loans to finance the purchase of the car.
So what is a bankruptcy loan? These are loans that a bank or other financial institutions offer to those who are unable to take out normal loans due to their previous bankruptcy record.
Regardless of whether you have filed for a Chapter 7 or Chapter 13 bankruptcy, all hope is not lost. While the application process is relatively easy both in the UK and USA, you need to know, that even in the case of these auto loans, there is no guarantee that a USA financial institution will lend you this money. You would need to see if you meet certain criteria for you to qualify for such car loans. Typically, they would require the person to have a job and a decent credit record. While most lending institutions expect there to be at least a two-year gap between the time of bankruptcy and the time you decide to take out a loan, some will be willing to lend you the money as long as you make a down payment. This is the case with a few banks. Some other lending companies would also keep the car as collateral. The amount you pay monthly will depend on the price of the car, the down payment amount and of course, the terms of the loan. You should know that if you default on payments, the car will be seized. If you feel that you are unable to afford the high monthly payments, you could always opt for a used car.
You should first embark on finding a financial lending institution that is reputed for offering good loans for those with bad credit or after bankruptcy. A simple search online will give you several companies that are willing to lend to bankrupt. You need to have a look at a few bankruptcy car auto loans before you decide, because not all will offer the same package. The interest rate too may vary and will typically be more in your case as there's a higher level of risk involved.
Bankruptcy Auto Financing, a well-known lender, requires that all applicants earn a monthly income of a $1500, minimum, and that you've been working with your current employer for at least a year. Auto Credit Service is another such reputed provider of auto financing. They however simply require that you are able to guarantee employment for the period of the bankruptcy car loans. Their other requirements can be sound on the website. To get approval, you simply need to fill out a form online to see if you will qualify.
So what is a bankruptcy loan? These are loans that a bank or other financial institutions offer to those who are unable to take out normal loans due to their previous bankruptcy record.
Regardless of whether you have filed for a Chapter 7 or Chapter 13 bankruptcy, all hope is not lost. While the application process is relatively easy both in the UK and USA, you need to know, that even in the case of these auto loans, there is no guarantee that a USA financial institution will lend you this money. You would need to see if you meet certain criteria for you to qualify for such car loans. Typically, they would require the person to have a job and a decent credit record. While most lending institutions expect there to be at least a two-year gap between the time of bankruptcy and the time you decide to take out a loan, some will be willing to lend you the money as long as you make a down payment. This is the case with a few banks. Some other lending companies would also keep the car as collateral. The amount you pay monthly will depend on the price of the car, the down payment amount and of course, the terms of the loan. You should know that if you default on payments, the car will be seized. If you feel that you are unable to afford the high monthly payments, you could always opt for a used car.
You should first embark on finding a financial lending institution that is reputed for offering good loans for those with bad credit or after bankruptcy. A simple search online will give you several companies that are willing to lend to bankrupt. You need to have a look at a few bankruptcy car auto loans before you decide, because not all will offer the same package. The interest rate too may vary and will typically be more in your case as there's a higher level of risk involved.
Bankruptcy Auto Financing, a well-known lender, requires that all applicants earn a monthly income of a $1500, minimum, and that you've been working with your current employer for at least a year. Auto Credit Service is another such reputed provider of auto financing. They however simply require that you are able to guarantee employment for the period of the bankruptcy car loans. Their other requirements can be sound on the website. To get approval, you simply need to fill out a form online to see if you will qualify.
Why Your Credit Score Matters When Purchasing A Car
Your credit score is a numerical representation of your credit history report, which includes details of all your credit accounts and loans, and how good you've been about paying them. It also reports any defaults, repossessions, or bankruptcies. Credit scores, which for most people falls between 400 (poor) and 800 (excellent), are a major factor in determining the cost of buying or leasing an automobile. The score determines what interest rate you'll pay, or even if you can get approved at all. It also determines if you will be allowed to take advantage of special new-car incentives, such as 0% APR loan and lease offers.
There are three major credit agencies in the U.S. - Equifax, Experian and TransUnion. When you apply for a loan to purchase a car, the dealer has to check and give your credit score information to the finance companies they work with. Scores can vary a little or maybe a lot between agencies. Unfortunately, you can't control how the lender interprets your credit score. A score of 700 is considered excellent, for others 720 or higher is considered excellent. A score of 620 while not that bad, may shut you out of a deal with one finance company and / or charge you a higher what they call "subprime" interest rate, costing you more money out of your pocket. If you're in the market for a car and know you want to finance it, you absolutely need to know your credit score before walking in to the dealership. It's easy to obtain online with companies such as MyFico.com and CreditScore.com. Not only will you get your score, looking at your credit history report will allow you to find mistakes and old data that may be unfairly damaging your score. Under the Fair and Accurate Credit Transactions Act, you can obtain one annual free copy of your credit report. For more information visit http://www.annualcreditreport.com or call 877-322-8228. You will still have to pay a fee to get your scores.
What can you do to improve your credit score rating?
Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 706 can raise their score by as much as 20 points by paying all their bills on time for one month.
Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.
Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points.
Have credit cards - but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
Get current on delinquent accounts. Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit.
Closing an account doesn't make it go away. A closed account will still show up on your credit report and may be factored into the score.
If you're having trouble paying off your debt - talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet. Remember, "fixing" a credit score is more about fixing errors in your credit history. It's now about following the guidelines above to maintain consistent, good credit history. Raising your score after a poor mark on your report or building credit for the first time will take patience and discipline.
Joy Sherman, Founder, Ms. Motorcars has been in the automotive industry for over 20 years.
After attending Northwood Institute and obtaining certification in Dealership Management, I started working in the dealership delivering vehicles to our customers. I became very familiar with the paperwork involved. Moving between the jobs of Delivery Coordinator to Sales Consultant, Service Consultant and overseeing the Customer Relations Department, taking care of the customer was always in the forefront. With over 20 years of experience, I'm proud to say my customers saw a level of competence and trust which continues today.
There are three major credit agencies in the U.S. - Equifax, Experian and TransUnion. When you apply for a loan to purchase a car, the dealer has to check and give your credit score information to the finance companies they work with. Scores can vary a little or maybe a lot between agencies. Unfortunately, you can't control how the lender interprets your credit score. A score of 700 is considered excellent, for others 720 or higher is considered excellent. A score of 620 while not that bad, may shut you out of a deal with one finance company and / or charge you a higher what they call "subprime" interest rate, costing you more money out of your pocket. If you're in the market for a car and know you want to finance it, you absolutely need to know your credit score before walking in to the dealership. It's easy to obtain online with companies such as MyFico.com and CreditScore.com. Not only will you get your score, looking at your credit history report will allow you to find mistakes and old data that may be unfairly damaging your score. Under the Fair and Accurate Credit Transactions Act, you can obtain one annual free copy of your credit report. For more information visit http://www.annualcreditreport.com or call 877-322-8228. You will still have to pay a fee to get your scores.
What can you do to improve your credit score rating?
Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 706 can raise their score by as much as 20 points by paying all their bills on time for one month.
Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.
Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points.
Have credit cards - but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
Get current on delinquent accounts. Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit.
Closing an account doesn't make it go away. A closed account will still show up on your credit report and may be factored into the score.
If you're having trouble paying off your debt - talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet. Remember, "fixing" a credit score is more about fixing errors in your credit history. It's now about following the guidelines above to maintain consistent, good credit history. Raising your score after a poor mark on your report or building credit for the first time will take patience and discipline.
Joy Sherman, Founder, Ms. Motorcars has been in the automotive industry for over 20 years.
After attending Northwood Institute and obtaining certification in Dealership Management, I started working in the dealership delivering vehicles to our customers. I became very familiar with the paperwork involved. Moving between the jobs of Delivery Coordinator to Sales Consultant, Service Consultant and overseeing the Customer Relations Department, taking care of the customer was always in the forefront. With over 20 years of experience, I'm proud to say my customers saw a level of competence and trust which continues today.