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Monday, April 16, 2012

Seven Ways You Can Hurt Your Credit Score

Here is an article from MSN that covers seven ways people will usually hurt their credit score.  Here is an excerpt from the article to give you an idea of what people typically do.
Opening too many accounts at once

Credit card new-account bonuses are certainly enticing, but you shouldn't be signing up for every card that's offering some cash back. Every application and subsequent credit review will generate a hard inquiry that will appear on your credit report. (Credit reviews that aren't used to decide whether you are actually getting a loan -- for instance, one conducted by a prospective landlord or by a bank when you are looking to get a checking account -- are considered soft inquiries and will have no impact on your score.)
Each hard inquiry will ding your score from three and five points and stay on your report for two years, although it will negatively impact your score only for about half the time it appears.
There is something in this article that isn't further expounded which is important for you to know regarding hard inquiries.  Hard inquiries that occur within two weeks while you are looking for a car or home as one hard inquiry instead of multiple ones.  This is called rate shopping and is something you should do.  Here are a few more answers from MyFico.

Friday, January 20, 2012

Crazy 88 Auto Loans And Guaranteed Approval Credit Not That Great

I had previously written about Crazy 88 Auto Loans back in 2009 before the first Basic Credit Info website had gone down, and I see that it is still going on strong. I don't want to have to repeat all that I said so here is a link to the original article that had been posted on another site I was using.

(Writers update: the following appears to be older information as the company has updated their site.)

One of the most important parts of looking at this company is the disclaimer which states the following:
See dealer for complete details on all programs. Not responsible for typographical errors. See dealer for details. Bank approval required on all credit applications. Subject to finance approval to qualified buyers. Certain restrictions apply based on lender approval. $88 a month for up to 3 months at dealer discretion. Offer may be withdrawn at any time and is not to be used in conjunction with any advertised offer. Amount of down payment and monthly payment may vary based on consumer's credit history.
For full NADA book value: negative balance applied to new loan balance. Financing on approved credit through dealer designated lender. All vehicles plus tax tags and freight. Guaranteed trade for purchase of used vehicles only. Offer may be withdrawn at any time and is not to be used in conjunction with and advertised offer CRAZY 88 is a registered marketing agent and not an automotive finance company or lender. Negative balance applied to new loan balance. Financing on approved credit through dealer designated lender.
So as you can see this isn't that great a deal.  Especially since the deal can only last for up to three months. This is very similar to those instant auto approval deals you see on TV. Many times they tell you that you can get approved regardless of your credit history. Why wouldn't someone who keeps getting denied credit not want to take this deal?

The above disclaimer shows that while it may be great short term in the long run you will be hurt worse. What happens if you get a car and your payments go up to four or five hundred per month? Will that help your credit if you can't pay for your new car? Always check out disclaimers on these companies before doing business.

This is the new updated disclaimer showing on the Crazy 88 website.

The terms for which you qualify will depend on your credit history and other factors. An $88 monthly payment is based on a loan amount of $5082 at an APR of 4.9% over a term of 66 months and an $88 down payment. Down Payment amount does not include government fees that includes tax, title, and other related fees. These are not actual consumers but demonstrate potential results. Crazy 88 is an auto dealer referral service. A local dealer in your area will provide the car and arrange for your loan
I'd like to think that this site and others led to this change due to pointing out that previously you could only get the $88 dollar deal for up to three months. Even then as you can see, the deal only applies to a certain amount, APR, and terms of loan length to get what they promise on the site. Even then to get this deal it is all dependent on your credit history and factors!!! Wasn't the point of this promotion to get the $88 dollar deal no matter your past credit history? It's right there on their front page:
During this event, you can purchase a car, truck, van or SUV is available to you for only 88 dollars down and 88 dollars a month, regardless of your past credit history. Get the car you want today!
Looks like their own disclaimer contradicts their website. Don't be fooled, this whole promotion still stinks and I would avoid it if you are looking for a new car.

Basic Credit Info Is Back!!!

So after being offline for the last year or so, Basic Credit Info is back online.  I apologize for going offline but rest assured that I will continue to provide you the best information I can to help you learn about credit and how to build your credit score.

I will continue to post stories that relate to the consumer so that you can learn and avoid having too many issues.  If you have any questions don't hesitate to contact me.  I look forward to working with you and have a great day.
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