Guest Post by Shane MC

Tips on Credit and Buying a Car by Shane MC

Tell my audience about yourself. What made you want to start your website helping people with bad credit?
I started my website to help people with bad credit and prevent them from making the same mistakes I did because I got into debt when I went to college. By the time I was a senior I had 13 credit cards and graduated with $19,000 in credit card debt. I lost my job and was unable to make the minimum payments which ignited by financial crisis.

What products/services does your company provide?
My company provides one-on-one credit and financial counseling and financial literacy education to K-12, college students and adults.

Please name some quick and easy ways for a person to improve their credit even if they’ve recently been through a divorce or some type of financial calamity?
Some quick and easy ways for a person to improve their credit are:

Pay old debt such as judgments, liens, repossessions, and collection accounts first then focus on all other debt

Keep credit card balances at 20% or less of the credit limit

Pay bills before the due date

Don’t close older accounts

Get a secured credit card and ensure the payment history is reported to the credit bureaus

Don’t open more than one new account every 1-2 years

When shopping around for a loan or credit get price quotes within 2-4 week period which counts as only one inquiry

When a person walks into a car dealership what are some credit questions you recommend that consumer ask the salesman or finance manager?

I recommend asking these questions before you let the salesman pull your credit report.

What is the minimum credit score needed for approval?

What information or documents do you need to furnish to receive financing?

What payment options are available?

What is the interest rate?

What fees are charged in addition to the price?

What deals, rebates, discounts, perks such as good credit are available on financing and down payment?
What are the terms of the loan?

What kind of car do you qualify for?

Are there any prepayment penalties?

If you buy from a dealer than caters to people with bad credit or an independent dealer ask if your payment history will be reported to the credit bureaus.

What is the late payment policy?

Is there a grace period?

What is the buy rate?

How long does the Credit Restoration process take?
The credit restoration process can take anywhere from 30 days to years depending on a person’s income, how much debt they owe and how much they can afford to pay towards their debt each month. It usually takes 45 days to fix errors on your credit report. On average a person should see an improvement in their credit score within 120 days.

If a person can’t purchase a vehicle in cash, what’s the ideal down payment you recommend they have? Does a larger down payment mean a shorter loan and APR?

• Have at least a 20% down payment unless you’re buying an older car then put down 10%. The 20% payment is usually enough to cover the car’s first year depreciation so that if your car is totaled or stolen you don’t owe more than the car is worth. However if the interest rate is over 7%, wait until you can save more for a larger down payment. This prevents you from being upside down on your loan.
• A larger down payment means a lower monthly payment but does not necessarily mean a lower APR. APR is determined by your credit score so even though you put 20% down if you have bad credit you can still have a high APR.
• Zero down payment is the best option for a lease because if you put a down payment and the car is stolen or totaled you lose the down payment.

Besides hefreemanenterprises.com what are some of websites/blogs you would recommend our visitors visit while trying to improve their credit?

http://hefreemanenterprises.blogspot.com
http://www.bankrate.com
http://www.ftc.gov
http://www.myfico.com

http://bhphprices.com/articles/interview-with-credit-expert-harrine-freeman-of-h-e-freeman-enterprises/