Fixing Bad Credit Reports Without Experience – The Amateur But Effective Way

Every time you need to get a loan from a crediting institution, there’s always one document that will determine whether you’ll get a positive response or not. It is your credit report. This is the document that has helped shaped the lives of millions and at the same time has been the obstacle to making some progress for some millions too.

Also, your score has to be really good for you to get the best of deals with creditors. But this is one area that needs clarification as some people’s perception of a good score conflicts with that of financial experts.

You may have a score of 620 to 660 and think you’ve done great. Frankly speaking, this is a nice try. But if you expect to get a mortgage loan or auto loan in the present state of the economy you’ve got to do better than that.

As a matter of fact, mortgage bankers will only readily consider you for loan nowadays if your records show that you have a score of 740 and above. Though many people still get approved with scores from 700 to 720, but the reality is that they pay a higher interest rate than if they presented 740.

The way to improve your rating is to fix your credit report. To do this, you’ll be using either self-help or the services of a repair agency. If you must use self-help, which is cheaper monetarily, you’ll be needing a guide-tool known as a restoration-kit/manual.

This is not compulsory but essential since you’ll be applying same strategies that repair agencies use – methods such as sending out dispute letters via certified mail to bureaus, challenging negative/incorrect information on your file, and even calling the bluff of collectors who are noted for coercing debtors. One of the things edges a restoration-kit will also give you is how to negotiate with collectors and get them to help you delete collections from your file.
Remember that you can also consult a credit repair agency if you can’t do-it-yourself. Good luck!

8 Year Auto Loans

We are seeing longterm loans of up to 8 years on new cars. Generally the Financing Department of a Car Dealership makes as much money as the sales department. After 0/0 deals have come and gone, the new car sales markets are looking for ways to continue the high sales. By offering lower payments of $50-100.00 per month less, car buyers who could not afford the car they wanted will now be able to fit it within their budgets since so many Americans are underemployed, in other words working at Home Depot even though they have two advanced degrees.

The telecom job they may have had at $60-88K per year has turned into a $36K per year cash strapped job. These consumers are still being targeted by the dealerships even with these current issues. The real problem comes down the road similar to those which hurt the Leases where the people were upside down in their values upon the time when most turn in their cars; average is three years.

GE Capital left the leasing game for SUVs and cars and GMAC and FMC lost millions in bad lease deals when the cars were traded in, they could not be sold for the agreed upon residual values. Many times the trade ins before end of term or open end leases meant the consumer would have to bury those upside down numbers into the financing of their new car. So they might have traded in a Jaguar or Cadillac and roll over the difference and then have payments of $400.00 per month on a Nissan Sentra or Ford “Fajita,” I mean “Festiva” Turbo of course with all options? This was a huge game in the leasing days in the Early 90’s.

With 8-year loans, payments will be lower, but that three-year itch to buy a new car will not be fulfilled without taking a huge hit. This of course would be bad for future sales of cars. Or a worthy temporary fix for now to sell more cars, but would mean that the economy would have to be rather wonderful in 8 years. Unfortunately if people keep their cars longer, then the auto parts stores will do better in 3-5 years, due to the planned obsolescence of the vehicles, which is manufactured into the car in the first place. Some industries like car washing, which tracks the new car markets for about 3-4 years as people with newer cars tend to spend more money on washing will be hit after that time period. Who wins? If this huge play for 8-year loans sells many cars in 2003 Q3 and through 2004 up cycle Election Year, does well it will help after market auto accessories as people add-on to their car. People have an emotional tie to their cars and just like men buy Viagra and Women get augmentation or breast enhancements, this same drive of self, is what drives those to upgrade or personalize their cars with new features as they move to build upon this extension of their personalities, our great American love of the Automobile. Talk about “Apple Pie” these are real trends. Anyway if auto parts is up and car washing is down, at least there will be more cars on the road, so the expanded pie will take care of the decreases. Occasionally there are events, which trigger large sector rotation or trigger small sub-sector changes, which move markets. Eight year auto loans is one strategy, which has been played before with auto leases, but there is a long-term problematic issue to be concerned with in such a tactic for shorter term profits.