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From Denial to Keys in Hand: Rebuilding Your Auto Dreams
From Denial to Keys in Hand: Rebuilding Your Auto Dreams
Have you been denied at dealerships due to past mistakes affecting your current credit score?
Have you been denied at dealerships due to past mistakes affecting your current credit score?
Bad things happen to good people all the time and you are not alone! If you follow these 10 steps before your next visit you can have the confidence in driving off the lot.
Bad things happen to good people all the time and you are not alone! If you follow these 10 steps before your next visit you can have the confidence in driving off the lot.
Review Your Credit Report: Obtain a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion) and carefully review them for errors or inaccuracies. If you find any, dispute them immediately, as they could be negatively impacting your credit score. You can do so for free at https://www.annualcreditreport.com/index.action
Improve Your Credit Score: Work on improving your credit score by paying bills on time, reducing outstanding debt, and addressing any derogatory marks on your credit report. This can take some time, so be patient and consistent with your efforts. A good way to start is by using Self Credit Builder (watch the video below to learn more then use my referral link to get started!)
Build Credit History: If you have limited or no credit history, consider establishing credit by opening a secured credit card or becoming an authorized user on someone else's credit card. This can help you build a positive credit history. A good credit card to start with is the Chime Credit Builder which is used just like a debit card. (Watch the video below to learn more. If you do not already have a Chime Account use my referral link so we both earn $100 when you join and receive a qualifying direct deposit!)
Pay Down Debt: Reducing your outstanding debt can have a positive impact on your credit utilization ratio, which is a key factor in your credit score. Aim to pay down credit card balances and other outstanding debts.
Increase Income: If possible, look for ways to increase your income to help you better manage your debt and improve your financial stability.
Budget and Save: Create a budget to track your expenses and identify areas where you can cut back. Allocate more money toward paying off debts and building an emergency fund, which can help you in times of financial hardship.
Seek Credit Counseling: If you're struggling to manage your debt or credit, consider seeking the assistance of a credit counseling agency. They can provide guidance and strategies for improving your financial situation.
Apply with a Cosigner: If you need a car urgently, you may consider applying for a car loan with a cosigner who has a stronger credit history or income. Their good credit can increase your chances of approval. You may also take them off the loan after 12-15 months of on time payments!
Save for a Larger Down Payment: Increasing your down payment can reduce the loan amount and make you a more attractive borrower. It can also help lower your monthly payments. A good recommendation would be 20% of the vehicle's price. (Ex: $20,000 Car = $4,000 Down Payment, $30,000 Car = $6,000 Down Payment, $40,000 Car = $8,000 Down Payment, $50,000 Car = $10,000 Down Payment, etc.)
Patience and Persistence: Improving your credit can take time. Be patient and persistent in your efforts to boost your credit score. Continue to monitor your credit report regularly to track your progress. The Experian App is the most accurate free source compared to Credit Karma which is very inaccurate when it comes to credit scores.
Remember that rebuilding your credit takes time and effort, but with dedication and responsible financial management, you can improve your creditworthiness and increase your chances of getting approved for a car loan in the future. It's also a good idea to consult with a financial advisor or credit counselor for personalized guidance based on your specific financial situation.
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