How to Rebuild Credit

Rebuilding your credit after a foreclosure or bankruptcy can be difficult. Even if you just have a low credit score due to slow payments or large debt, it can be challenging to move your credit score a few numbers higher. At Credit Capitol we are in the business of helping folks rebuild their credit. It can be tough to find financing for large ticket items like a car when you have credit problems.

Here are some tips to rebuild or establish good credit:

  1. Get Financing. This may seem counter intuitive. The last thing you probably want is more debt, but part of rebuilding your credit score is getting a loan and making payments on time. Establishing good credit with a lender is one of the best ways to improve your credit score.
  2. Expect to Pay More. Unfortunately, having a low credit score means you are a higher risk for lenders. Expect to pay a higher interest rate or make a larger down payment.
  3. Protect Existing Credit. If you still have credit lines open, do not close them. Your credit score if effected by how long you’ve had accounts open. Be sure to make your payments on time. Even being 30 days late can drastically affect your score.
  4. Check your Score. Get a copy of your credit report from all three credit institutions: Equifax, Experian, and TransUnion. Examine your reports for errors. Be sure to dispute any errors you find.
  5. Pay your Bills on Time. This may seem obvious, but it is the number one factor that affects your credit rating. A whopping 35% of your credit score is based on paying your creditors on time. In order to rebuild or establish good credit this is the most effective tool.

At Credit Capitol, we understand credit issues. We specialize in helping people with “less than perfect” credit get financing for auto loans. We don’t offer home loans or business loans. We just specialize in getting you into a car. With a new car loan, you can help rebuild your low credit score by making your monthly payment on time. We work with a variety of lenders in order to find the right one for you.

For more information, fill out our quick form and use our loan calculator to calculate your payment.

To get help from an auto loan specialist go to the Liberty Buick GMC website and check out their financial page.  Or call Billy Joe Estes at 704-708-8000.

Do Lower Gas Prices mean You Can Afford More Car?

Recently, gas prices have been falling all over the country. Some places have seen gas as low as $2 a gallon! Hopefully most of us have felt this savings in our pockets. With gas prices so low, maybe it’s time to consider buying a new car. It makes sense that if your overall car costs are lowering, you might be able to afford a new car or a better car than you currently drive.

At CreditCapitol, we are all about getting drivers the best car for their money. NBC News believes the drop in gas prices could mean the costs of other items will drop too. With the cost of gas and other goods going down, it is the perfect time to start shopping for a new car. New cars are more affordable with lower gas prices. You can now afford to spend a little more each month on the payment because your gas bill has been cut in half. Buying a newer car also mean better gas mileage which means even more savings at the pump.

The National Automobile Dealers Association believes that more Americans will be able to afford a new car. Employment and wages continue to rise as gas prices go down. This is the perfect situation for those needing a new vehicle. At CreditCapitol, we have also seen interest rates decrease even for those with “less than perfect” credit.

How We Can Help

CreditCapitol is more than just a financial services firm. We are a resource that finds the perfect financing for even the most broken credit. So many of us have credit problems nowadays, but that should keep you from getting a great deal. Our clients may have had bankruptcies, foreclosures, divorces, and other issues. We work many lenders to find great financing for you and work with the dealership to get you into a car you can truly afford. Contact us today and start shopping for your new car!

What Your Need to Know About Auto Financing in 2014

Buying a car is typically the second most expensive purchase that most Americans will make outside a new home. Most car buyers need some kind of loan to get the deal done, so understanding your financing options is important even before you walk into a dealership.  Because it is a big purchase, it’s important that you approach it with a financially-savvy mind.  For 2014, here are a few things to keep in mind before you buy your next car:

Interest rates going UP – In the last 6 months of 2014, interest rates have moved up anywhere between a quarter to a half percent. And there is no reason to believe this trend won’t continue. If you are seeking a loan to buy the car, the higher the interest rate, the larger your monthly payment will be.  Liberty Buick GMC finance managers believe that interest rates will most likely continue to slowly rise in 2014.  So buying a car sooner rather than later might translate to a smaller monthly payment.

Auto Financing 2014

Auto Financing 2014

What influences your interest rate?  You may be drawn into a dealership because a certain model car comes is being advertised like this – Get a zero percent interest rate, for 60 months to qualified buyers.  That sounds terrific, however, that are many variable that come in to play to actually get that rate.  These variables include how much money you put down, your credit score, age of the vehicle (new or used), value of the loan and terms or length of the loan agreement.  Oftentimes these offers also come with a Manufacturer’s rebate.  Make sure you do the math, because it is sometimes cheaper to take the rebate versus going with a zero percent interest rate.

Discounts for Students, Military – Automakers offer discounts based on who is actually buying the car such as students, military and even members of a certain credit union. Make sure you inquire about these discounts before you finalized you deal.

Larger Inventories – Manufacturers will sometimes offer dealers $1,000 or more as an incentive to sell cars that make up an unusually larger inventory. Use a vehicle information source like Kelley Blue Book or Edmunds.com to see what incentives are being offered to dealers on the models that you are considering and then ask the dealer to share that cash incentive with you by further discounting the price.

Cynthia Schick,

CCP Web Design Staff Writer and Google Author

Save Big Using Credit Card Purchase Power!

General Motors wants to help you save for your next car. By simply using a GM credit card issued by Capital One, you can enjoy earning from your purchases every day.  Here’s the plan:  Every year, and year after year, enjoy 5 percent on the first $5000 in purchases. Spending above $5000 in the same year GM will give you an additional 2 percent on all other purchases for the balance of the year. The chart below will give you a sense of the savings you can achieve.

 

  Year 1 Year 2 Year 3 Year 4
Spending $5000,00 @ 5% $250.00 $500.00 $750.00 $1000.00
Spending $10,000 @5%then 2% $600.00 $1100.00 $1600.00 $2100.00
Leverage your credit card to buy a buick in charlotte

Powerful Credit Cards

 

One of the great things about this card is that your earnings do not expire and there is no annual fee in this card.  There is also no limit on how much you can earn or redeem with the new GM card from Capital One.

Redeeming your Earnings – Use your earnings towards over 30 new vehicles – Buick, GMC Chevrolet or Cadillac

GM Business Card – Let your hard pay off with unlimited rewards.  The GM Business Card gives you unlimited earnings on your business purchases. You can even add additional employee cards that link to your account, set individual spending limits and track individual spending activity.

 

 

  • 5 % earnings on GM parts, accessories and service at authorized GM dealers
  • 3 % earnings at gas stations, restaurants and office supply stores.
  • 1 % earnings on all other purchases

For the GM Business Card users will enjoy a 0% APR for the first six months

Click here for more information and to apply for the GM Card from Capital One

What Your Need to Know About Auto Financing in 2014

financingBuying a car is typically the second most expensive purchase that most Americans will make outside a new home. Most car buyers need some kind of loan to get the deal done, so understanding your financing options is important even before you walk into a dealership.  Because it is a big purchase, it’s important that you approach it with a financially-savvy mind.  For 2014, here are a few things to keep in mind before you buy your next car:

Interest rates going UP – In the last 6 months of 2014, interest rates have moved up anywhere between a quarter to a half percent. And there is no reason to believe this trend won’t continue. If you are seeking a loan to buy the car, the higher the interest rate, the larger your monthly payment will be.  Liberty Buick GMC finance managers believe that interest rates will most likely continue to slowly rise in 2014.  So buying a car sooner rather than later might translate to a smaller monthly payment.

What influences your interest rate?  You may be drawn into a dealership because a certain model car comes is being advertised like this – Get a zero percent interest rate, for 60 months to qualified buyers.  That sounds terrific, however, that are many variable that come in to play to actually get that rate.  These variables include how much money you put down, your credit score, age of the vehicle (new or used), value of the loan and terms or length of the loan agreement.  Oftentimes these offers also come with a Manufacturer’s rebate.  Make sure you do the math, because it is sometimes cheaper to take the rebate versus going with a zero percent interest rate.

Discounts for Students, Military – Automakers offer discounts based on who is actually buying the car such as students, military and even members of a certain credit union. Make sure you inquire about these discounts before you finalized you deal.

Larger Inventories – Manufacturers will sometimes offer dealers $1,000 or more as an incentive to sell cars that make up an unusually larger inventory. Use a vehicle information source like Kelley Blue Book or Edmunds.com to see what incentives are being offered to dealers on the models that you are considering and then ask the dealer to share that cash incentive with you by further discounting the price.

Cynthia Schick,
CCP Web Design Staff Writer and Google Author

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How to Raise Your Credit Score and Keep It

credit ratingA credit score can seem like a complicated and sometimes arbitrary number, but if we break down what makes up a credit score, we can see how to help raise the score. And three to five points can make a difference in the type of financing available to you.

A credit score is made of five key factors:

Payment History 35%

This is can be the most obvious one. It’s what we’ve always been told. Make your payments in full and on time. Making more than the minimum payment is also helpful, otherwise “you could be paying your credit card company until you die-literally,” according to credit expert, Gerri Detweiller.  Of course, this one can be difficult at times when unexpected circumstances occur.

Debt Level 30%

This one is a bit more complicated. Creditors look at the amount that is currently available to you and compare it to what you owe those creditors. Creditors like to see a ratio of about 30% owed to what is available. And less than 50%. If you have a credit card with a $1000 credit limit, a balance between $200-350 is good. If you have credit available of $5,000 three different credit cards, and you owe only 30% it is best to have the 30% spread over the three cards instead of having one close to being maxed out while the others have a zero balance. The reason this is important to creditors is that it shows how you manage credit.

Length of Credit History 15%

Creditors look at a long credit history more favorably than a short one because it is a better indicator of your spending habits. This is why it is better to leave accounts open than to close them.  It is tempting to close an account once it has been paid off, but sometimes an account that you have had for a long time that carries a low balance, will boost your credit score more than a new credit account.

Inquiries 10%

This one is the most shocking. Every time a creditor pulls your credit report, it can affect your score up to five points. Inquiries stay on your credit report for up to two years, although creditors are most interested in the last year. A lot of inquiries can be interpreted by creditors as financial trouble, even though you may just be trying to get the best deal on a credit card or couch. This is where knowing your credit score before shopping can be a big help. It is important to note, that the consumer credit report is different than the one a lender may obtain. See our October blog for more information.

Also, according to FICO, the leading credit score for most lenders, if you are looking to make a big purchase such as a home, car, or applying for student loans, you are allowed 30 days to shop around for the best rate. Auto loans and mortgages are two of the biggest purchases for consumers, so FICO doesn’t even consider the last 30 days of credit inquiries from these types of lenders. This means that you should do a lot of research first to minimize the decision making process. It is okay to have auto, mortgage, and student loan lenders pull your credit report as long as it happens within 30days.

CCP Web Design Staff Writer,

Kelly Bladl

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Posted in Credit Information by admin. No Comments

The Four Elements of Financing a Car

finance

#1 Price
Price is a key factor in buying a car. If you don’t need dealer financing, then the sticker price of the car is the key factor. If you do need financing, the price should be negotiated. Check other dealerships advertised prices online before you get on the lot. Get a few quotes in order to have the best information when you are at the table.

#2 Term
Term is how long you will pay the car payment. Most financing options are 3, 5, or 7 years. This is a key element because you want to feel comfortable that you can make the payment for the entire loan. A longer term will make the car payment lower, but think about how long you want to own the car. Think about the depreciation value that will occur over the course of the loan. If your term is too long, the car has the potential to become underwater, meaning you will owe more on the car than it is worth.

#3 Interest Rate
Interest Rate is determined by a number of factors. Your credit score, the make and model of the vehicle, and dealer incentives can all affect the interest rate that is offered to you. Knowing your credit score and the average current interest rate for car loans will help you in negotiating a better rate. Keep in mind that interest rates will affect your monthly payment.

#4 Monthly Payment
The monthly payment is an essential part of the loan process. Only you know how much you can afford to pay in month. You should know what your maximum car payment is before you look for a new car. Keep in mind the above factors will manipulate the payment. If your term is longer, your payment will be lower. If price is higher, your payment will mostly likely be high. And changing the interest rate even slightly can lower or higher your payment. With these tips in mind, you can feel more confident in negotiating the best deal. Even if you don’t have the best credit, you can get a great deal.

Kelly Bladl
CCP Web Design Staff Writer

Credit for First Time Users

first car loan, car loan, loans, first credit, creditThe credit system is based on data collected about a person’s credit history but for those who have never had credit before there will be no such history, making them a credit risk. This means that these lenders will be less likely approve loans for consumers in the “at risk” category.

Fortunately, there are a few simple ways to go about getting new credit, even for those who are just starting out:

STEP 1:

The first thing that everyone who is new to credit should do is to double check their credit score before applying anywhere.  New consumers should check their scores first to make sure they haven’t been an identity theft victim before looking for new credit.  Even children’s social security records and credit scores may be tainted by identity theft issues. Children’s social security numbers are stolen and because children don’t need to check their credit scores they don’t discover the problem until it’s too late. The government’s free resource for looking at your credit score can be found at annualcreditreport.com.

STEP 2:

New consumers should get their first line of credit.  Car loans are a good place to start.  Cars are necessities for most people in our day and age, so customers who seek car loans for their first credit line won’t have to feel like they’re buying credit for credit’s sake.   Liberty Buick GMC does a great job working with first-time buyers.

STEP 3:

Pay bills on time!  Paying bills when they are due and regularly monitoring your credit score is a great way to build a lifetime of good credit.  Lenders who are not willing to take risks on first time credit shoppers are definitely not about to take risks on people who earn a negative credit history.  It can take seven years for a negative mark to be removed from a person’s credit score.

After you have established good credit it’s important to monitor your credit reports so that identity theft can be caught early.  While people who have never checked their credit accounts can be popular targets for identity theft, that doesn’t mean the rest of us are safe.  If an identity theft issue occurs, the quicker it is noticed the more likely it is to be resolved.

For free advice on car loans, please contact the financial department at Liberty Buick GMC.  We will be happy to help with a first-time buyer get started on the right track!  704-708-8000

How to Tell If You Are a Victim of Identity Theft

identity theft, auto loans for identity theft victims, auto loan, build credit, good credit, bad creditThe key to stopping identity theft is catching it early. Unfortunately because of the fact that the government only guarantees a free credit report once a year, it is estimated tha the majority of Americans only monitor their credit scores at that time. But there are just a few simple ways to look at a credit report to tell if someone’s identity has been stolen, and this can go a long way in preventing further damage to the credit score.

The first potential sign of identity theft is incorrect information on the report. Rod Griffin, a spokesperson for Experian said that “If you see a name you’ve never used, a Social Security number that doesn’t belong to you or an address at which you’ve never lived, it could be a sign of fraud.”

This can happen because an identity thief may list his or her information as the victim’s, in order to receive correspondence on behalf of accounts they have opened up in the victim’s name. But, it is always best to check with credit bureaus about this false information before sounding the alarm. Sometimes the false information can be a simple mix-up, such as when the company gets someone’s information confused with someone else who has the same name. Sometimes credit bureaus can even confuse people with others whose social security numbers are only have a digit of difference between them.

Another sign that is almost always a sign that identity has been stolen is when the credit report shows inquiries that the victim doesn’t recognize. MSN has reported that “credit reporting agencies are required by law to disclose the names of any companies that have obtained your credit information in the last two years.” This means that when reviewing a credit report, all inquiries made in that person’s name in the last few years will show up. If there’s a company on the report that that person has never applied to, then there is likely a problem.

There is one situation where an unknown lender showing up on the report is ok. Sometimes companies, especially store credit cards and even some auto loans, will show up on a credit report as a different name. That is because these companies will use other corporations to manage their financing department.

The last, and most important. Sign that credit fraud has been committed is if a person finds an open account on their credit report that they have never heard of. This could simply mean that there has been a mistake at the credit bureau, confusing someone’s identity with someone else based on a common name or similar social security number. This could also simply be a company using a different financial provider to handle financing cases, meaning the name on the report is not recognized by the user. But most often, this is a sign of fraud.

Griffin, the spokesperson for Experian, went on to emphasize that no single one of these factors may indicate a problem, and that it is important to analyze them together.  “It’s important to take the information as a whole and in conjunction with other indicators,” he says. “Things such as unauthorized charges on a billing statement, collection notices for accounts that are not yours, billing statements from an unknown lender or a call from an existing lender asking if you made a purchase that you did not make should also be taken into account.”

It is important to always be on the lookout for identity theft. CBS reports that approximately eight million people experience identity theft every year. This is a small minority of Americans, but that doesn’t mean we should let our guard down. When identity theft does happen it can be devastating when not caught early. Victims of identity theft are usually not liable for the charges, but they almost never restore their credit.

If you have been a victim of identity theft or have had difficulty with credit for other reasons, there is a way to help you begin to heal your credit score. That starts with opening new credit and making regular, timely payments. Stop by here at Scott McCorkle’s Liberty Buick GMC so we can help you start making regular, timely payments on a new auto loan!

Credit Score Matters to Everyone- Even Your Date

dating, online dating, credit score, trust, marriage counselor, auto loanIt took a while for the score to catch on, since they haven’t always been used to determine creditworthiness. But now that it has become a big hit, everyone is using the standard FICO credit score to determine whether someone is trustworthy enough. The credit score is being used to judge everything from auto loans to mortgages to dating. Yes, even dating.

According to the New York Times, more and more people are now reporting that they are being asked about their credit score on dates. Some interviewed for the Times even say that they were asked about their credit score on their very first date.

The majority of the information we have now on how often credit score is factoring into the dating scene comes from financial advisors, couples’ counselors, and dating site personnel. These professionals are reporting that more and more clients are asking questions about their significant other’s credit score, or are reporting that they’ve been asked about their credit score by a significant other. These questions are also commonly showing up on dating site forums as part of kind of a pre-date interview.

Professionals say the reason for this new trend is that it shows the date that you are a responsible person who takes their finances seriously. The credit score is fast becoming the primary indicator of someone else’s financial prowess. For some, having a bad credit score has actually become a deal breaker for the relationship.

And there is good reason for concern in many cases. The banks will often look at both the husband’s and the wife’s credit reports when checking scores for a loan. If one of the people in the marriage has poor credit, it can seriously impact both of their futures. It can prevent couples from getting the mortgages and auto loans they need to stay afloat.

But to make the credit score a deal breaker isn’t always fair. Often a failed credit score will be the result of circumstances out of the consumer’s control for reasons such as identity theft, illness, loss of job, and student loans to name a few. It’s always best to ask someone about the circumstances surrounding their poor credit score before making assumptions about their character. A poor credit score doesn’t always mean what we might want to think.

But on the other hand, this can often leave some couples in a difficult predicament. One person’s bad credit score many not be due to financial irresponsibility on their part, but that doesn’t just make the bad score disappear. And thus the couple is still stuck with the problem of one person’s score affecting both of their ability to get credit.

The solution is a surprising one. In order to earn credit, you have to make regular credit payments in a responsible manner. But in order to do that, you have to have someone willing to lend you credit. That’s why places like Scott McCorkle’s Liberty Buick GMC really help those in need of credit. We can help by making sure you get the auto loan you need, even if you’ve fallen on hard times. Then, over time, you can use the payments on your auto loan to help build your credit back up. If you or your significant other are interested in building credit this way, please be sure to call us or stop by!