Simply Professional Credit Consultation: 2015

Thursday, October 22, 2015

The Top 3 Auto Loan Banks For Bad Credit

Before we get started, I want to say that I have put together this list of banks based on my experience in the auto industry. During my 4 years of experience, I have been in sales, finance, and management. During my sales time, I sold over 500 cars and 65% of those sales were to customers with credit scores under 650. I know the banks that bought majority of the customers with those scores and narrowed them down to the top three. Of course, some people may agree and disagree with this list and that's ok. The purpose of this article is to educate consumers on some of the choices out there. I would like to also point out that I am not getting paid to promote these companies and I genuinely want to see people have confidence when they walk inside of the dealership. Lets get started

1. Capital One Auto Finance

Alright, for those who know me, you all know I am a huge fan of Capital One Auto Finance. This is the only bank that I have seen that will give a person a credit card when they have bad credit or no credit at all, watch the customer make payments on the credit card, and then send them an auto loan approval! Capital One is all about relationships. If you treat them right, you will get treated right as well. Most dealerships worldwide have Capital One Bank on their list of banks that they send applications to. Capital One also offers 1.99% on new vehicles for applicants with higher credit scores of course. Another reason why I love Capital One is simply because they offer refinancing to consumers as well. You won't be able to do refinancing if you are a current customer of theirs as they only this if you are coming from another company. They WILL NOT refinance a current Capital One customer as that is how banks make money.....on the interest rate. This is great for people who have higher rates, they have paid on time, their credit score has increased, and they are looking to lower their payment. I highly recommend them.

2. Credit Acceptance Corporation

There are many banks between Credit Acceptance and Capital One. The reason why this is number 2, is simply the ease of getting a loan with them. They are the ONLY BANK to give consumers an auto loan while they are currently in a Chapter 7 or 13 Bankruptcy, Previous or current repossession, multiple bankruptcies, multiple repo's, Expired or Revoked or Suspended Drivers License, State ID only, Cash income, 1099 Income, Disability Income, Self Employed, Closed Bank account, first time car buyer, low down payments, and a great selection of cars that work with their programs. I think I covered everything lol. The minimum income they work with is $800/month income before taxes. A checking account is not required but does help tremendously with the approval process. Because of the profit margin for the bank and the dealership, some dealerships don't work with them with is the dumbest thing I have ever seen a dealership do as customers with all credit situations come in. I forgot to mention that they also approve consumers with open auto loans in which most banks would force the consumers to trade the open auto loans in a prefer them to have only one auto loan at a time unless there is a co-signer involved. Either way, you get the point. They are awesome.

3. Americredit

This is the final bank on the list. Americredit is very similar to Capital One. Most dealerships and car lots have them as they have been around forever. They are technically 1 of 3 banks. The other two are Ally Bank and GM Financial. Ally is mainly for customers will 640 or above I would say and GM Financial is the main bank for most GM dealerships. Why is this important? Well, most american made cars are GM and for customers living in the U.S will more than likely but an american vehicle. You dont have to necessarily but, when they see that you do, they are more willing to finance one of their own makes and models. Americredit comes in when the consumer can not get approved for GM Financial or it is simply not available if it is a non-GM dealership. This bank normally requires a $1800-$2000/month income, proof of address, and Drivers License that is valid. They normally wont do interest rates past 22%. Once again, a great bank.

The Bottom Line

Hopefully this article was able to shed a light of hope during your car shopping experience or maybe you know someone that may not have the best credit and they are not sure about the first step to take. Located in the article, there are a few pictures that you can click on that will actually take you to an application in which is sent to a dealership near you that work with some or all of banks mentioned in this article. Be sure to share this info with someone you know that can benefit as well.

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Calvin Russell Jr is a Certified FICO Professional, Approved Partner With Bankrate, and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today to learn more or email us at info@gosimplypro.com.

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Monday, October 12, 2015

No Credit Or Bad Credit. Which Is Better?

We have all seen the ads "Bad Credit, No Credit, No Problem" right? This normally leads to the question that people always want to know...Is it better to have bad credit or good credit? That really all depends on how you look at it and for what reason you are asking that question. Credit reports are made up many different ways as there aren't two of the same reports. I will explain the pros and cons of having either no credit or bad credit.

Pros of No Credit - Easy To Build

When a consumer is in the beginning stages of building credit, most people don't know exactly how to build credit. Some people follow the famous myth that you must carry a balance on your credit card or pay the bill twice in a month to get double the credit. Because of lack of education, many will just wing it and see what happens if they open a Credit Card Account and make some payments each month. Some people are lucky enough to have parents add them as authorized users on their accounts and eventually create a credit score down the line. But what about those who have No Credit? Isn't not having credit a good thing? Well, it depends on what you are trying to accomplish. If you are trying to get a Credit Card Account, then it would be easy to get approved as Credit Cards are normally the easiest accounts to open and build credit with. If you are trying to get an auto loan, things may be a little tougher and may require a co-signer as you have never had previous auto loan payments to show you are worthy of a loan. There are banks that do offer a First Time Car Buyer Program to consumers who have never established credit before. Keep in mind these lenders will more than likely offer a double digit interest rate along with a required down payment for a reliable vehicle.

Cons Of No Credit - Will Require Some Effort & Time

If you are trying to get a personal or home loan, then prepare to be declined as you need some form of history showing that you can pay and manage your credit bills on time. More than likely, having no credit will result in the lender explaining to you that you will need a co-signer or that you would have to place a certain percentage as a down payment. Even with a Credit Card, the results are not overnight and normally takes 2-3 months or more to generate a score. Keep in mind, just by having a credit score doesn't mean that you can go crazy and start to open more accounts as this will lower your age of credit. A good rule of thumb is to keep a 0 or low balance while maintaining on time payments.

Pros Of Bad Credit - Previous History

How could having bad credit be something positive? It's really quite simply actually. Most consumers, not all, but most have achieved bad credit by a series of bad choices for many reasons. With that being said, many consumers at some point had good enough credit to get approved the accounts in the first place. Because of previous credit history, a consumer has a shot at many "Credit Rebuilding" programs that work with credit challenged clients. Most of these programs dig deeper into previous accounts on the credit report to make their judgement and not just the score itself.

Cons Of Bad Credit - Late/Missed Payments & Derogatory Marks

I really don't have to go over the reasons why bad credit can be....well......bad! I will go over them only because in some cases, even "Credit Rebuilding" Programs won't take a chance on some consumers as they have shown no improvement or effort from those consumers. For example, if the consumer has had multiple accounts with late or missed payments, then more than likely, the lender feels that the consumer will late with them as well. Not to mention the types of derogatory marks including collections, civil judgments, public records, and liens that will show the lenders you may have a garnishment on the way to satisfy a debt owed. Also, with bad credit, the rates are higher than those who may have "No Credit" as the "Bad Credit" consumer shows why they are bad versus never opening an account before.

Bottom Line

As you can see, having No Credit or Bad Credit can be positive or negative depending on what you are trying to accomplish and who you are working with to receive an approval. This post is to simply shed some light on a different perspective as I have seen people on both sides prosper as well as get denied from a lender. This post will also set the right expectations before working with a lender so there are no surprises during the outcome.

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Saturday, October 3, 2015

How To Get A 4-5 Digit Limit On Your Credit Card

One of the most popular questions I get asked is "How do I get a limit increase or big limit on my credit card?" It's really quite simple actually as the banks would love for you to have a higher credit card limit as they think you would swipe more! For those who know me, you know I don't promote debt and I educate on how to manage credit properly. One of the biggest ways of managing your credit properly is to know what your limit is and how you can increase it as well. Lets get to it!

1. Ask For A Credit Limit Increase

Not too long ago, consumers would call their credit card provider and ask for a limit increase. During that process, they would ask the consumer a few personal finance questions pertaining to income and outstanding debts. The conversation usually ended with the consumer consenting to a Hard Credit Report Pull and the financial institution finalizing the approval or decline. The process is similar today, but the difference is that now the consumer can request a limit increase online and some credit card companies have "Soft Pull" technology in which the inquiry won't ding your credit. Usually it takes about 5-7 inquires or month within a 2 year period to show that you are looking for credit somewhere and in that case your score may take a small small dive. Keep in mind, these inquires that affect your score are called "Hard Inquires" as the consumer gives the financial institution permission to get and updated credit report. Either way, hard or soft, asking for a limit increase is the best route to go. Be sure to ask especially if you have made your payments on time for at least the last 6-12 months. This also increases your utilization if your balance is close to the limit.

2. Pay Your Bill On Time Each And Every Month

This may sound like I am preaching to the choir but you would be surprised how many phone calls credit card companies get from consumers asking for a credit card limit increase and they have been late a few times with their monthly payments. If you make 90% or more of your payments on time, you better your chances of getting your request approved for a higher credit card limit.

3. Get A Better Credit Card

When most consumers first start on their credit card journey, they get offers in the mail or email, they then apply, and then of course get approved. The problem is that consumers think that these "Entry Level Credit Cards" will eventually get them into the 3K and above credit limits. Don't get me wrong, there are many card holders with 20K limits and such, but for the sake of this blog, lets keep it simple and easy. My point is that you need a stronger card company or card period as your credit has, or should be, stronger than when you first started your credit card journey. For example, when your score increases, the offers in the mail change dramatically. Companies start offering 0% Balance Transfers and all sorts of perks as the consumer becomes more credit worthy. Usually, those are the credit cards that provide 3K and much higher limits based on payment history, utilization, income, and of course, your credit score. To find a card that offers higher limits to their customers, click here.

4. Bring Down Your Balance

Banks love when their clients use their credit cards but they love it more when the client carries a balance. Carrying a balance means not paying the monthly billing statement in full and only making the minimum payment. If the consumer decides to go this route, the bank will charge interest on that balance for the next month. Also, depending on your balance, the utilization can be too high. Utilization is calculated by the Balance divided by the Limit. An ideal utilization is 30% or less. FICO High Achievers, 760 and above scores, have a 0%-7% utilization. The key is to have access to a lot but not using it all. If this is the case, the consumer will have a much better chance of getting a limit increase as it is not a desperation move based on a high balance.

5. Make A Deposit Towards The Limit

This is popular with consumers that have a "Secured Credit Card" as they are used to making a deposit anyway to obtain a certain line of credit. With an "Unsecured Credit Card", a deposit is not needed to get approved for the card but some credit card companies make let the consumer make a deposit and thus have a higher credit limit. Once again, the consumer has to use raw or liquid cash (real money) to deposit into the credit card company and then receive the higher limit. This is the last option as some consumers would rather not deposit money just to have a higher limit or let alone have the money to do so.

The Bottom Line

Hopefully this post helped you along your journey to a higher credit limit. With these few things, you are bound to get your request approved by the credit card company. I myself was tired of my low credit limit. So I followed these same steps along my journey and before I knew it, I received a higher limit. Be sure to share this with someone that can benefit from this information as well. See you on the way to the #850Club!!!

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Friday, September 18, 2015

How To Finance A Car With A Previous Repossession

Many consumers have had previous repossessions in their past and they have thought about how to finance a car after it happens. Of course, everyone's situation is different ranging from job loss, not caring about payments, or the needed expensive work that was not worth keeping the car. Whatever the situation, consumers must realize that there is hope. There are a few banks willing to give a second chance to consumers. But there are terms that come along with that. Here is what to expect.

1. Understand That You Will Have A 18-30% Interest Rate

After being in the automotive industry for over 4 years, I don't know why
consumers think they would get a low or single interest rate. You see when you have a car repossessed, many financial institutions won't take a chance on you. The few banks that are willing to finance you will give you a double digit interest rate between 18%-30% depending which state you live in.

Most consumers tend to worry about this high interest rate, but don't worry as there is a solution! You see, these auto loans are not made to keep for the entire term. If you have a high interest loan, you only want to keep it for 50% - 70% of the term. With normal driving miles per month and normal wear and tear, you may break even with your car being worth what you owe.

2. Understand That You Will Have To Make A Down Payment
Yes, Yes I know. Why must you have to make a down payment? It is really quite simple actually. Anytime you have many late or missed payments, the bank would like to see a commitment from the buyer so that they finance less. Especially with a previous repossession, there is a 90% chance that the bank will require one to approve you for the loan. How much will you have to put down? It really depends on the financial institution. A good rule of thumb is around $1000-$1500. Keep in mind, with bad credit, it is best to stick with a car of $15K and under. The smaller the car, the smaller the down payment and monthly payment.

3. You Are Not Marrying The Car You Finance
In some cases, you will get approved for a car that you may not fall in love with and that is okay. Since you are not marrying the car you finance and keeping it forever, its best to keep your options open and not to be too picky. Normally with bad credit, there will be a compromise. It will either be on the monthly payment, the down payment, or the car itself. Don't be surprised if you change your mind on the color or maybe even some equipment. The most important thing to remember is the fact that you were able to get approved and to set a goal to make all of the payments on time.

The Bottom Line
By now, you can see how consumers can finance another car after a previous repossession. There are many finance companies that are willing to give consumers a second chance but they must know how to qualify and how to take advantage. Hopefully this article helps you or someone you know. Be sure to share this article with someone you know that can benefit from the information provided.

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Tuesday, August 18, 2015

3 Ways To Lower Your Car Payment Right Now

After working in the automobile industry for 4 years and selling close to 500 cars in less than 3 years, one of the most frequent questions I get is "How Can I Lower My Car Payment?" Of course, your credit score will play a role as this will determine if lowering your car payment is possible at all! Here are a few ways you can go about dropping that payment.

1. Refinancing Your Auto Loan
Many banks and credit unions give consumers the opportunity to refinance their cars and potentially lower their monthly payment. Notice I said "Potentially" as some consumers just want to lower their interest rate and possibly shorten the loan term at the same time which in case keeps the payment almost the same. Why do this? It keeps most of the money from the monthly payment towards the actual principal of the loan instead of the interest. Usually, the main purpose of refinancing the auto loan is to lower the monthly payment by lower the interest rate, extending the term, or both. Most of the good re-fi rates are for the 680 and above scores only. Anything under that will probably be in double digits. Banks that do auto re-fi loans are Capital One, Wells Fargo, Fifth Third Bank, and many more. Keep in mind, your credit score will be a determining factor as that will give you the interest rate you qualify for.

2. Trade In The Current Car In For Another Car
This way is usually the easiest way to get a lower monthly car payment. Unlike a re-fi, when trading a vehicle in at a dealership opens up the doors for lower interest rates as multiple banks fight to earn you business. Everything is done electronically of course but in most cases consumers have no idea that they now qualify for a lower payment because they now have better credit than at the signing of the original loan! One thing to find out ahead of time is what new incentives the dealership will have on certain vehicles. I have seen consumers get approved for the special finance rate of 0%-2.99% with a 620 credit score! Also keep in mind that negative equity (upside down) may or may not play a factor.

3. Pay Extra Or Make A Lump Sum Payment
I saved this option for last as not many consumers are able to afford to do this in order to lower their car payment. When you make extra payments on your car loan that go toward the principal, this will lower the overall monthly payment simply because the overall amount financed is now lower. Most banks will not charge a early payoff penalty. This option is for consumers that plan on keeping the current car for at least 4 years or more. A lump sum payment would be the same outcome as there would be smaller amount owed because of the lump sum payment. This happens mostly around tax season and lowers the payments but not always by alot. Be sure to decide if this option is for you or not.

The Bottom Line
Now you have the 3 Ways To Lower Your Car Payment Right Now. Hopefully this has helped some of you for your own situation or someone that you may know. For more topics such as this one, free credit tips, and discounts, be sure to join our email blast here!

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Thursday, August 13, 2015

3 Reasons Why Your Credit Score Won't Increase

Most consumers are not sure why their credit scores won't increase. There is nothing more frustrating than looking at your credit score every week or month only to see the same number. There are few reasons why your credit score won't increase.

1.
Problem: No Current Credit Card History
This is the #1 culprit on most the credit reports I see on the daily basis. Most consumers are afraid to get a credit card. Many consumers had said that their parents or friends told them how credit cards are bad for you. Another reason they mentioned was that they didn't want to accrue debt. All of this comes from lack of knowledge about how credit cards work for and against you. I wrote an article on this not too long ago----Read: How Credit Cards Work.
Solution: Get A New Credit Card
The easiest way to solve this is to get the right credit card for you and your credit score. Most consumers apply for the wrong credit cards and end up getting denied or having to pay a deposit. If your score is above 550, you should apply for a Fair Credit Score Credit Card. If your score is under 550, you should apply for a Secured Credit Card. Be sure to read my article above to use credit cards the right way and see a big increase in your credit score.

2.
Problem: Great Payment History Every Month, But New Collections As Well
Another problem most consumers have is doing everything right by paying bills on time and keeping low credit card balances. But their problem is simply forgetting about old unpaid accounts that have become "Collections." Collections hurt your credit score tremendously and sometimes by 40 points or more! On time payments increase your score but it can only go so high if there are collections that put a ceiling on the progress.
Solution: Pay The Collections & Ask For A Dispute Online
Many consumers think that when you pay a collection in full or a settlement, that it will be removed from your credit report or that your score will increase. That is incorrect. Once the collection is paid, you must ask them to remove it from your credit report and/or dispute it from your credit report. The FCRA does not allow accurate information to be removed but in most cases they will remove it from the credit report if they see that it is paid and viewed under investigation in less than 30 days.

3.
No Recent Activity On Accounts
Some consumers have not swiped their credit cards or opened a new account in a while. I am not saying add debt. I am saying that if you have cash, its okay to swipe your credit card and pay the bill on your phone or computer when you get home. Its simply showing creditors that you still can pay on time and that is what credit is all about.

Bottom Line
Hopefully, this has helped some of you as I see credit scores that don't increase all the time. If you practice good credit habits, you will always be a FICO High Achiever (780+). Thanks for reading and I will see you in the #850club!

Calvin Russell Jr is a Certified FICO Professional and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today at www.gosimplypro.com to learn more or email us at info@gosimplypro.com.

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Wednesday, July 29, 2015

How To Start Your Children Off With A Great Credit Score By....

Many young adults apply for student and auto loans only to get denied because of low credit score. Some of them have no idea how to build credit or how to start on the right path. That is usually when the parents come in. Some parents show their children how to build credit, some build it for them, and some tell their children to never build or worry about credit at all.....only to end up co-signing for them later because of it. I assume since you are reading this, you are far from the latter. Lets get started.

1. Add Them To Your Credit Card As Authorized Users

Adding your child to your credit card as an authorized user is the easiest way to help your child build credit. What makes this process so simple is that most credit card companies offer this as a free service up to a certain amount of Authorized Users. First, an Authorized User is someone that is added to an account with limited access and adding an additional card is optional. Keep in mind that when the bill comes every month, the payment history, balance, limit, and utilization will show on the primary and authorized users credit report. The beauty of this feature is that the authorized user score increases even without them having to do anything to the account. Be sure to check with your credit card company to find out more about the terms associated with your card. Click Here To Apply For Credit Cards That Allow Authorized Users.

2. Add Them To Your Auto Loan (Reverse Co-Signing)

Normally when a young adult is looking for a car, they go to a dealership with their parents in hopes that they will co-sign for them. Once the young adult is denied for the loan, the parent usually steps in and saves the day by becoming a Joint Applicant on the loan. This is called "Co-Signing."

With "Reverse Co-Signing" a few different steps take place. This will only work if the parent is in the market for a vehicle and has at least a 640 credit score or higher. Here's how it works:

1. The parent want a car for themselves.

2. The parent can get approved for the auto loan by themselves.

3. The parent adds the young adult to the loan even though the auto loan is for the parent.

4. The interest rate may increase as the joint applicant (the young adult) does not have any or light credit.

5. The parent makes all of the payments of course because the car is for the parent.

6. That payment history shows on the young adults credit report

7. Over time, those payments help create a healthy high credit score for the young adult

8. When the young adult wants their own auto loan, the banks will more than likely say yes as they currently show a healthy payment history of another auto loan.

9. The young adult is happy with their new car and a co-signer was not needed during the process!

3. Add Them To Your Personal Loan

If a parent is looking to get a personal loan, they can add their young adult children as joint applicants as well. This process may require more paperwork as a personal loan will go by income, W2's, Bank Statements, and etc. In the long run, it will be well worth it and will add a healthy payment history to the young adults credit report. Click The Banner Below To Apply For A Personal Loan That Allows Young Adults As Joint Applicants.

4. Show Them How To Use A Credit Card Properly

Overall, the parent should know how to use a credit card properly but most importantly, to show their children and young adults how to do the same. This process can work for both retail credit cards and the normal bank issued credit cards as well. For the article I wrote on How Credit Cards Work, click here.

The Bottom Line

Now as a parent, you can see that there are multiple way to help your young adults build a high and strong credit score. I have seen all of these ways work in the best favor possible for the parent and young adult. There have been many cases in which I have seen scores as high as 760 and the young adult had no idea about their credit score being so high or how it got there in the first place.

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Calvin Russell Jr is a Certified FICO Professional and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today to learn more or email us at info@gosimplypro.com.

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Monday, July 27, 2015

What Exactly Is A FICO Score?

FICO was founded in 1956 as Fair, Isaac and Company by engineer William Fair and mathematician Earl Isaac. The company debuted its first general-purpose FICO score in 1989 and by 2005, they sold their 10 Millionth Score! Watch this short video on what the score is and why it matters.

Every day, thousands of U.S. lenders use FICO Scores to make more well-informed credit-granting decisions. But what does that mean for you? And why is it important to understand how lenders use them?

This video takes a look at what a FICO Score is and why it matters to consumers and lenders alike. Watch to learn how FICO Scores streamline the lending process, making it faster and fairer for you.

The Fastest Way To Build Or Increase Your FICO Score

Now you can see the importance of having a high FICO score! Now the next question is "How Do I Build My Score Or Increase It Higher?" The answer to that question is going to be different for some consumers as everyone has a different credit score and report. For those of you who are just starting out, I recommend getting a Credit Card. A Credit Card is the easiest way to build your credit, but you must use it properly. To understand how credit cards work, click here.

Some of you have already built your credit score but you are looking for the fastest way to increase that score. The #1 problem most consumers have is to much utilization. Utilization is calculated by your credit card balance/your credit card limit. A good utilization to have is 30% or less. For example, if your credit card has a limit of $1000 and a balance of $300, then you are in an okay position. If your balance is $600, then your score will more than likely decrease since the utilization is so high. To see the best results in your credit score and using your credit card, you must keep your utilization under 6%. Even though is close to not even using your credit card, this will improve your score like you wouldn't believe!

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Calvin Russell Jr is a Certified FICO Professional and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today to learn more or email us at info@gosimplypro.com.

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Wednesday, July 15, 2015

3 Signs Its Time To Stop Paying Rent & Purchase A Home

Right now is the PERFECT time to purchase a home. Mortgage rates are still at an all time low and the banks are becoming more lenient on the qualifications to get a mortgage loan. Many current tenants are thinking of making the move to become home owners but, they are not quite sure it is the right time. Take a look at these signs as it may describe your current situation.

1. Your Rent Payments Are Equivalent To Mortgage Payments

This is the number one sign as this is always the tipping point for most renters. I remember when I was working one day at the dealership and I asked my customer a series of questions related to their auto loan approval. One of the questions were, "What is your current rent/mortgage payment per month?" They answered "$850!" Yes, $850!!! At the time, my wife and I were paying a little more than that for a nice apartment in a nice area. It was at that moment I began to ask myself, "Where do all of my rent payments go each month?" It was also at that moment that I decided to become qualified for a mortgage loan.

Most rent payments are extremely close to that of mortgage payment. Mortgage payments can be under $1000/month for a lot of reasons. The homeowner could have placed a nice down payment, they could have re-financed, they could be living in a low cost neighborhood, or they simply could have found a great deal on a property. Many tenants think most mortgages are between $1500-$2500 when that is not the case at all. Most residential homes for middle income americans range from $125k-$175k and could be lower depending on the state. That creates a mortgage anywhere from $800/month-$1400/month with today's mortgage rates.

LEARN HOW TO QUALIFY FOR A HOME IN LESS THAN 12 MONTHS!

2. Your Neighbors Aren't The Best

You gotta love the alarm clocks that never get shut off in the morning from your neighbor. Or what about the one who always decides to wash their clothes past the allowed time notice. Or the kids who sleep in a bedroom right above yours and it seems like there is always a wrestling match on their floor. Or what about the one who always has company over to hammer a few things on the wall.......every night........if you know what I mean lol. Either way, your neighbors keep doing things that either upset you or piss you off. We didn't even discuss the major ones such as: Arguing couples, constant smoke alarms, cannibus under the door, loud music and parties, constant furniture moving, and I could go on and on! Most of the minor things we all have dealt with only because the situation is not big enough to complain to the landlord about. One thing for sure is that its easier to change what YOU CAN control vs trying to change something YOU CAN'T control.

LEARN HOW TO CREATE A MONTHLY CASH FLOW FROM AN INCOME PROPERTY

3. Your Landlord Is Really A Slumlord

That moment when you call your landlord about a problem you are having in your apartment that needs to be fixed..............and they said they would fix it months earlier. Or what about the so called "Free Heat" but the temperature feels like 60 degrees inside the apartment during the winter. Wait, what about the time your landlord asked you to pay rent a couple of days EARLY for no reason at all! Or maybe the time you came home and you noticed your apartment had been entered by someone else and could possibly be the landlord! Yeah, that my friend is a slumlord! Things never get fixed and complaints never get addressed. But you deal with it. Why? Because its easier to live under someone else's rules and building than your own right? With a home, you will have to maintain it yes, but at least its your home. You may have your own gas bill but at least you can control the heat to your liking. Ditch the slumlord and qualify for your own mortgage!

The Bottom Line

As a good or great tenant, I am sure you have thought about the idea of home ownership. Let these 3 signs push you in the right direction of getting that loan pre-approval. I myself know the feeling of dealing with some tenant issues of my own and also dreading the pre-approval process. Credit is a big deal and it is needed to finance a home. Be sure to visit my website and see if there is a package with your name on it.

If you are looking to purchase a home in next 1-2 years, I strongly recommend enrolling in our 12 Month Boot Camp to get you qualified and educated on the home buying process. Click Here for more information.

Calvin Russell Jr is a Certified FICO Professional and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today to learn more or email us at info@gosimplypro.com.

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Monday, June 29, 2015

How To Build Your Credit With A Low Income

I know you face may look like Shaq when I tell you the answer to this question. The question being "Is it possible to build your credit score with a low income?" The answer is..... ABSOLUTELY!!! With credit scores and reports, one factor that has no affect on it is your personal income. That's right! Regardless of income, you can have a high or low credit score. Of course, it would seem easier to build credit with a higher income as you can afford the payments and such, but you can also build it with a lower income. Let me explain how.

1. Getting A Credit Card

Getting a Credit Card is the easiest way to build your credit score. Why? It's really quite simple. With a credit card, you can swipe the card for everyday purchases like gas, groceries, and lunch. I say everyday purchases because these are items that with or without a credit card, you would pay for anyway. With swiping the credit card for those items instead of cash, keeping a low balance, and making the payments every month in full, it's only a matter of time before your credit score rises! There are plenty of credit cards that are specifically for people who may not have the best credit due to a low income and a few late payments. To see which one is best for you, compare them here.

2. Becoming An Authorized User On Someone Elses Great Credit

Everyone knows that person in the family who has the great credit score. They didn't just wake up with great credit. They created healthy credit building habits such as: Paying bills on time, keeping low credit card balances, keeping accounts open, and maintaining multiple accounts with high limits. These types of people are going to keep doing what they have been doing as they know it helps keep their credit score high. If you know someone like this, call them ASAP and see if they are willing to add you to one of their credit cards as an Authorized User. This means that you will receive future payment history and all account changes on your credit report every month that the primary account holder does every month. Having a card of your own that is attached to this account is optional, but the key is not to focus on having a card attached. The key is make sure that they are practicing those good habits while you are on the account. This is increase your credit score like crazy and the best part is you never have to worry about paying the bill or anything. Be sure to choose the right family member or friend as their negative activity will show on your report as well. If they are late on a payment, go over their limit, or keep a high balance, your score will be affected negatively as well. Proceed with caution.

3. Getting A Retail Credit Card

Retail Credit Cards are really easy and simple to get approved for as well. The cashier will be sure to ask you at your local Target, Wal-Mart, JCP, Kohls, Best Buy, and every other business in your neighborhood. These credit cards are easy to get because they usually give you a discount on items you would normally purchase with our without a credit card. On top of that, these credit cards really don't require a lengthy credit history or high credit score. Be sure to keep the balance low and never go over the limit.

4. Get An Auto Loan or Personal Loan

This is an option to go but keep in mind, with a low income, your interest rate on these types of loans will be high. This means you will have high payments and more than likely pay double the amount of the loan over time. Why is this an option? Well, depending on your credit situation and whether you are in the market for an auto loan or personal loan, you will be able to quickly increase your credit score. I recommend refinancing as soon as you can once your score has increased to lower your interest rate and payment.

The Bottom Line

As you can see, there are a few ways to build a credit score with a low income. These steps are fairly easy to accomplish and will require some discipline once the account has been opened. Be sure to consult with a Certified FICO Professional if you have any questions. For more topics like this one, be sure to join our mailing list.

Calvin Russell Jr is a Certified FICO Professional and the CEO & Founder of Simply Professional Credit Consultation. SP Credit Consultation has helped hundreds of people increase their credit scores, qualify for homes, cars, and lower interest rates with their personal, Step-By- Step Action Plans. Contact us today to learn more or email us at info@gosimplypro.com.

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