Author: Eric Patrick

Ten Best Ways to Establish Your Credit

Before you can purchase a new car, a home, or any other major item you plan on buying with credit, you need to make certain you have established a good credit record. Many people can get approved for a line of credit with bad credit, but it can actually be more difficult for those who have no credit history at all. If you don’t have any credit or very little credit, here are 10 of the best ways to establish this all-important history.

Get a Credit Card…But Make Sure to Use it Correctly

Many people assume that getting any type of credit card is all they need to do. That’s not exactly the case. First, you want to make certain that the type of credit card you get is a secured card. This may actually be the only type of credit card you can get if you don’t have any credit history. A secured credit cardrequires you to make a cash deposit up front. This is done because you have no history of credit for the card issuer to examine. They don’t know if you’re going to pay on time or not, so they’re taking a risk on you.

After you’ve used this card for a while and have established a credit history, you can close the credit account and get your deposit back. Then you can apply for unsecured credit cards that don’t require a deposit.

Get a Store Credit Card

If you don’t have the money to make a deposit for a secured credit card, you may still be able to get a credit card from a store such as Best Buy, Walmart, or Target. These credit cards aren’t weighed as heavily as unsecured cards are, but they can be used to show that you can make monthly payments on a line of credit. Just remember that you only need one or two of these cards at most. Otherwise, you may find yourself with multiple monthly bills to pay.

Loans Can Help

Loans such as car loans will help you establish credit. The downside here is that you often can’t get an auto loan without having credit. Fortunately, you can get a co-signer who has established credit to help you. For most young drivers, that co-signer is one of their parents. Having a co-signer is a great way to start building credit without having any history of borrowing, but you do have to be careful. If you don’t make the payments, your co-signer becomes responsible for them.

Note that student loans can help build your credit history, but they don’t actually appear on your credit until you’ve started paying them back. For most, that isn’t required until you’ve been out of college for six months.

Have a Co-Signer for a Credit Card

You can also get an unsecured credit cardby having someone co-sign for it. Again, the co-signer will need to have good credit and must be willing to take over the monthly payments if you cannot make them.

Get a Credit Builder Loan

ACredit Builder Loanis designed to help build credit. Generally, the loan amount is fairly small, and you don’t actually get the money up front. Instead, the money is placed in an inaccessible account until you’ve completely paid off the loan. In a way, it’s like a savings account that you haven’t earned yet. Once you’ve paid it back, you can take the money out of the account and use it in any way you want.

Make Your Payments on Time

Even if you don’t have a line of credit, you can build up your payment history by making all of your rent, utility, and other payments on time. While these payments may not positively impact your credit history, missing too many payments can negatively impact your history. This is especially true if your unpaid bills are sent to a collection agency.

Hold Down a Steady Job

Most credit applications are going to ask you for your employment information. If you can show that you’ve been at the same job for a year or more, it shows that you have a stable income. If your employment history includes large gaps or shows that you change jobs frequently, it can make some lenders hesitant to approve your application. That shows that you may be jobless again soon, making it difficult or impossible for you to make your monthly payment.

Don’t Go Crazy with a Credit Card

If you get a secured credit card or have a co-signer help you get an unsecured card, don’t immediately charge up large balances. Instead, do your best to keep your balance to no more than 30 percent of the limit. This keeps your credit utilization low, which helps improve your credit score. If you’re constantly spending up to your limit or even going over your limit, it’s a warning sign to lenders that you don’t manage your credit well.

Keep Your Accounts Open for As Long as You Can

This length of time you’ve had a line of credit, specifically a credit card, will also help establish and build up your credit. Loans have a finite period in which they will be paid back, so you will obviously not be able to leave those lines of credit open past their agreed-upon time period. With credit cards, however, the account is open until either you or the card issuer closes the account.

If your credit card has an annual fee, you may not want to keep that account open. However, for a card that doesn’t have a fee, it’s a good idea to keep the account open even if you’re not using it. Do be aware, though, that some lenders do close accounts that haven’t been active for a year or longer. It may be a good idea to periodically use the card for small purchases.

Don’t Open Many Lines of Credit at Once

When deciding how to build your credit, pick only one option. Opening several retail credit cards, a secured card, and a credit building loan all at once can be damaging, especially if you charge up multiple high balances. Also note that if you open a new line of credit several years later, it will impact your average account age. That can also have a negative impact on your credit.

These ten ways will help you establish and build your credit. Again, you don’t need to make use of all of these methods – a loan, retailer credit cards, and secured credit cards or unsecured cards with a co-signer can all help you establish credit, but not if you take out one of each.

With Fairless Motors Bad Credit Auto Loans, customers with bad or no credit history will get a complete package in one place. Our professional staff members will set you up with affordable financingand help you find the prefect pre-owned vehicle from our extensive inventoryof late model cars, trucks, and SUV’s. Whether you need it for work, for family days out, or just everyday chores, Fairless Motors is passionate about getting you on the road in the right vehicle at the right price. Fairless Motors never turns a customer away because of a low credit score. Trust our family-run relationship to get you the financing and the vehicle you need, no matter what your credit history says.

HOW CAN A CAR LOAN HELP REBUILD MY CREDIT?

Having a decent credit score creates more financial opportunities for you. However, even though everyone knows having good credit is important,less than half of parents are explaining the specifics of managing creditto their kids. It’s also important to know that a low credit score doesn’t mean you can’t improve your financial standing. Financing your next vehicle can be the first step to strengthening your finances in the long run.

Having a low credit score or a challenged credit history no longer limits you from being approved for a car loan. However, you typically have fewer options and sometimes have to take on a loan with a higher interest rate than you may be expecting. But, keep in mind that getting this loan can be your first step to getting your financial independence back. Having an auto loan can improve your status as a borrower and help you regain confidence with your finances, especially following devastating events such as a difficult divorce, declaring bankruptcy, or going through car repossession. Here are four ways a car loan can help you rebuild your credit and develop better debt management habits.

Installment vs. Revolving Credit

The first aspect of auto financing is understanding what type of credit line you are managing with an auto loan. Installment credit is a loan you pay back with monthly payments that stay the same through the duration of the loan. The payment increments and amounts are determined at the beginning of the loan, and do not fluctuate as you’re paying it off. Revolving credit, on the other hand, has a cap on the amount you can borrow, but the borrower can elect to borrow certain amounts of that limit and pay it back at different times. Revolving credit plans, such as what comes with having a credit card, usually have a minimum payment you need to meet each month, and it is best practice to have your debt-to-credit ratiostay below 30 percent. As you can probably guess, an auto loan is an installment debt.

Knowing the difference between these two types is essential to understanding how installment debt affects your credit score differently than revolving credit. Overall, revolving credit, particularly credit cards, significantly affect your credit score, as many consumers fall into the trap of maxing out their credit lines and not paying it back. Since an installment debt has a fixed amount borrowed, the credit bureaus can’t scrutinize your use the way they can with your revolving credit debts.

Timely Payments Show Results

When you are approved for an auto loan, the fastest way to make sure you are in good standing with the lender and see your credit score improve, or at least, not dip lower in the short term, is making timely payments. Instead of making the minimum payment the day it’s due, pay early and add a little extra.

Choose Consistency Over Trying to Pay the Loan Off More Quickly

In 2017, the average American household had more$130k in debtfrom various sources. For auto loans alone, that amount is just under $30k. Looking at these numbers, it can be scary to think that you’re carrying this debt long-term. It may seem like the obvious solution is to just pay the loan off faster, but this can actually have an unexpected negative impact.

If you’re dedicating a lot of your expendable income to paying off your auto loan faster, you may be neglecting other debts or just paying the minimum balance on those. Not giving your other debts the same amount of consideration can land you in hot water in other ways. In addition, putting more towards your auto loan and less in savings means that you are more likely to turn to credit cards in case of an emergency. Lastly, both credit bureaus and lenders like to see an extended history of timely payments. So go ahead and make sure you feel comfortable with the loan term and making your payments on time for the duration, especially if this is your first loan.

Refinance to Qualify for An Even Better Loan

Once you establish yourself as a reliable borrower and have at least a year or two of making timely payments on your auto loan, it’s time to consider refinancing. The process of refinancing or applying for a new loan to cover your old loan while still using the vehicle as collateral, can help you reduce your interest rate, thanks to your increased credit score, and permit you to shorten or extend the loan term.

At the beginning, be prepared to see your credit score dip a few points, as lenders need to make hard inquiries when reviewing your refinancing application. If you submit your applications within the same few weeks, most credit reports will accept that as one hard inquiry, so make sure you rapid-fire your applications once you make the decision to refinance.

Ideally, you want to refinance with two goals: lower your interest rate and shorten the loan term. Reducing the loan term will increase your monthly payments, so make sure you plan for that ahead of time. Your old loan will close, and your new loan will take over. In addition, the new loan will show up as an additional account on your credit report, and that’s a good thing.

Sometimes, it can seem like it’s significantly easier to hurt your credit rather than help it. But over time, your auto loan will help you increase your credit score and improve your personal finances. In addition to getting the car that will take you where you need to go, treat your auto loan as the first step to building a better financial future for yourself. As long as you are responsible with your payments and knowing what else you need to improve on, taking out a responsible auto loan is the perfect way to jumpstart the process of steadily increasing your credit score.

At Fairless Motors, our finance departmenthas over 50 years of combined expertise to help all of our customers get loan approvals for their dream cars, regardless of their credit history. A team member will sit down with you in a relaxed, transparent way and discuss your options in detail. We’ll work out what you can afford, what your needs are, and what vehicle matches those criteria. We’ll help you get the right combination of vehicle from our extensive inventory, and a financing planthat fits your budget.

 

 

Why You Should Always Get A Full History Report Before Buying A Used Car

The average age of a car on the road in the United States is 11.5 years. Although owning a vehicle can take up a decent chunk of your income, there are many ways to save and find a great quality vehicle. Modern vehicles are built to last, so there is little to no risk in buying a used car and being able to rely on it long-term. Newer models may be flashy, but that doesn’t mean they are necessarily better.

Most used car dealerships will give you an accurate history of the car you are interested in; however, everyone should know how to shop smart. Not all vehicle damage or faults are visible for you to notice while inspecting or even test driving the vehicle. From faulty parts to surviving a flood, it’s important to be able to take a look at the car’s hidden history before committing to the purchase. Look for dealerships that provide a car history report, such as CarFax, as a part of their service. The reports are compiled from a variety of sources, such as insurance claims, police reports, and state inspection states. Here are five key questions a car history report can answer.

Was the Car Damaged by Flood or Fire? 

Wildfires, storms, extreme heat, and floods caused more than $300 billion in damagein 2017. Natural disasters might seem unlikely to some, but these events are expected for others. Both personal and commercial vehicles inevitably suffer some of the damage in a natural disaster, or smaller scale incidents such as a house fire that spreads. Either way, it’s important to know if a vehicle on a used car lot has been damaged by one of those events, and if that can lead to long-term problems.

In particular, many flood damaged vehicles reached the market late last year. The federal government, along with market experts, advised buyers to be more cautious while searching for used vehicles, after several hurricanes put damaged vehicles on the market. While you’re taking a first thorough look at the car, keep an eye out for signs of mold or mildew on the interiors, and corrosion near the fuse box and tail lights. (The corrosion will appear as a green or white powder). Since a flood damaged car is rotting from the inside out, it’s unlikely that the car’s condition will improve, even with regular maintenance. The Federal Trade commission has a full list of warning signsand where to report owners or dealers knowingly selling flood damaged vehicles

How Many Accidents Has the Car Been In?

Knowing the vehicle’s accident or collision history is an essential part of figuring out if this is the right car for you, and probably the most important part of the car history report. But does that mean you should immediately lose interest in any car that has been in an accident? Not necessarily.

In the history report, look for damage details, and whether the vehicle was towed or driven away from the scene. If it was towed, that means the car was more seriously damaged from the accident. If it was driven away, the vehicle likely received a few dents or scratches, but not serious damage that impacted the inner workings of the vehicle. However, keep in mind that reporting can sometimes be skewed by the other vehicles involved. For example, if a crash involved three cars and two sustained serious damage, the remaining car may also have been reported as being seriously damaged even if the driver could simply drive away from the scene.

When you take the vehicle to a mechanic, have them check for a paint work, ill-fitting panels, and other signs that the vehicle was potentially damaged and then poorly repaired. Accident history is extremely helpful, but an expert examination of the car will tell you more, and how to take care of the vehicle in the future.

How Many People Owned the Car Previously?

Ideally, a used vehicle should only have a handful of previous owners. People purchase and sell cars for various reasons, and a car in decent shape that’s been bought and sold a few times is normal. Look for whether the vehicle was previously owned by private owners, or if it was a commercial vehicle or part of a rental fleet. A history of private individual owners is more ideal. However, if the car is five years old and has had 10 owners already, that may be a sign that the car itself isn’t that great. But overall, a car’s mileage reflects more wear and tear than whether the vehicle has been bought and sold a few more times than you may anticipate.

What About Maintenance Records?

As much as you may like your mechanic, you don’t want to bring your recently purchased car to them several times in the first few months.

A car that has been well maintained for most of its life thus far is significantly more valuable than a vehicle with a spotty inspection and repair history. As the potential new owner, you want to avoid purchasing the vehicle and immediately having problems with it. You should also double check for safety recallsoutside of the history report.

If the Vehicle Has A Clean History Report, Can I Skip Taking It to The Mechanic?

Although it may be tempting to jump for joy if the vehicle has a clean history, you still need to get it inspected. Keep in mind that the history report is based on incidents being reported to insurance companies, law enforcement, or other agencies, so there is a record. If incidents like a theft or an accident aren’t reported, the vehicle is still at risk for not performing as expected, or even being defective enough to cause an accident.

If you’re shopping independently or a dealership doesn’t offer a car history report as a part of their services, you can pay a small fee to look it up yourself. You just need the Vehicle Identification Number (VIN), which is usually located on the dashboard of the driver’s side. Overall, make sure you get a full history report before buying your next used car.

At Fairless Motors, every vehicle we sell not only comes with a free CarFax Report, but also has undergone a complete inspection and professional detailing. All our vehicles are serviced and test-driven to ensure our customers feel 100 percent confident in their new pre-owned vehicle. Check out our extensive inventoryof quality cars, trucks, SUV’s and Minivans.

 

7 Tips for Finding the Best Used Car Deal in Town

Starting the search for your used car is both exciting and discouraging. It seems like there are infinite options for both cars and dealerships. How do you narrow down where to start searching? Knowing where and how to find the best deal is going to give you a head start on productive searching. Overall, you want your search to lead you to the perfect vehicle at the right price. Here are our expert tips on finding the best deals on used cars in your area.

Start Your Search in Specialized Car Search Apps

Sometimes, you don’t know how to narrow down your search until you see that something is in fact searchable. Utilizing an app for your smart phone can help narrow down finding a used car by everything from your height to the car’s mileage. Searching via this method tends to be more convenient for most people, instead of limiting your search options to a computer. In addition, although most used car dealerships have updated online inventories, starting with a broader search to narrow down by the specifics will give you a head start in your search. And there are many appsavailable to do that.

Judge the Car A Little Less by Its Exterior

Minor cosmetic damage can dramatically lower a used car’s price, even if the most important parts, such as the engine and brakes, are in mint condition. A fading paint job or a few dents paired with a suspiciously low price tag might make you think the car is in bad shape otherwise, but this is not always the case. Test drive and talk to someone at the dealership about how it runs. If you don’t mind saving money now to fix up the cosmetic damage a little later, this can work in your favor when it comes to saving on a vehicle that just needs a little extra love on the outside. In addition, you might be able to negotiate an event better bargain when you express interest in a car that may not look perfect but runs like a dream.

Look for Bargains That Don’t Sacrifice on Quality

If your budget is tight and you’re looking for a vehicle that will last a long time, the experts adviselooking at some of the top vehicles for reliability such as Honda and Toyota, but these cars can also have higher prices because of this. To get similar durability but save a little bit on the price tag, look at Nissan, Mazda, or Mitsubishi. In addition, used cars from one of the American automakers also have high durability ratings, and they also tend to sell for less than the imported models. Experts advise avoiding European cars if you’re looking for a price-conscious vehicle, as the parts and repairs tend to cost more than other comparable models.

Time Is Money: Know What Used Car You’re Looking For

In 2016, more than 40 million used carswere bought and sold in the United States. In such a large and varied market, having so many options can end up impacting your ability to make decisions. You might wind up making a purchase that doesn’t meet your needs or think that you won’t find the actual car you’re looking for. Being overwhelmed with options can make the search more time-consuming than it needs to be and may end in frustration instead of going to test drive a vehicle. Make a short list of cars that would fit your needs. For example, say you want a full-size sedan that is less than 10 years old and has no more than 100,000 miles. This is a good start to narrowing your search and being able to compare prices among similar models.

Narrow Down Your Search by Using CPO Finders

If you’re shopping for a Certified Pre-Owned vehicle and know the automaker you want, go to the automaker’s website and find their page for CPO vehicles. You can enter the model you’re searching for, and a list of dealers offering that model specifically will come up. From there, you can just click the button to contact each dealer, and shop around for the car you want without hours of searching.

Long-Term Investment vs. Short-Term Solution

At Fairless Motors, we won’t judge you by your car preference or your budget. We know our customers sometimes need a car that can be purchased for a very low price and only drive for a few months while you are job searching, getting ready to graduate from college, or you just moved to the Philadelphia area and need to get around. There are needs for a cheaper vehicle that doesn’t need to run forever, but we also encourage our buyers to think bigger and more long-term. Our inventoryranges from slightly older cars with higher mileage to newer, lower-mileage vehicles that can be a better long-term choice.

How to Consider A Deal on A Deadline

It’s understandable to feel alarmed when a dealership is trying to get you to purchase a car that may not be exactly what you’re looking for. Your reaction might be, “Wow, what’s wrong with it? Why do they want me to take this and not anyone else?” That reaction is reasonable. Some dealerships will try to steer you to a vehicle that they’ve had difficulty selling, so they offer it at a lower price. They are simply trying to offer you a bargain to make more room on their lot for other cars that they have coming in. They might give you a day or two to think about it, and this is when you should do your research to see if this deal is in your favor. Use an appraisal toolto figure out the vehicle’s market value, ask more questions about the vehicle’s condition and history, and you might drive off the lot with a great deal.

Now that you know tips on finding the best deal, read our post on the things you should know before buying a used car.

Fairless Motors has been the area’s best family owned dealership for quality pre-owned carsfor almost 30 years. Shopping for a quality used car at a fair price is stress-free when you shop with experienced team members. Our trained commission-free sales specialists take the pressure out of your buying experience. Our finance department has 50+ years of combined expertise to help customers with any credit history get approved. Our experienced team will help you to get behind the wheel of your dream car with affordable financing, regardless of your credit situation.

 

 

10 Things You Should Know Before Buying a Used Car

We at Fairless Motors strongly believe that buying a pre-owned vehicle instead of a new one is the right choice for so many Americans. You have a huge variety of options and can find significantly more budget friendly vehicles, especially when you go through a used car dealership that offers a large range of used cars. But there is a lot to consider before starting the process, which is why we put together the following 10 things you should know before buying your used car or truck.

Establish A Budget Range, Not Just A Set Amount

Before you get too set on your dream car that may be out of your price range, determine what your budget is. Make a full budget spreadsheet to keep track of your income vs. expenses if you don’t have one already. List all your income and known expenses like your rent/mortgage, average utilities, loans, credit card payments, and estimate anything else that you pay regularly, such as food, clothing, entertainment, etc. If you already have an affordable car payment, use that as a baseline for your new vehicle’s budget.

Once you determine what monthly payment makes sense for your budget, write down a range. The low price should be 10 to 20 percent less of what that number is, and the higher price should be 10 to 20 percent above. Starting your shopping with a feasible range gives you more options to buy. If you find a car that you love and is cheaper, that’s great. But knowing exactly how much more you can spend, car eliminate the hassle later, or keep you from making an impulse buy that isn’t really within your budget.

Start the Process with A Brand or Model in Mind

There are many reasons why one auto company can stand out to you. Prices make some people value a few brands, as they know they have affordable options. An individual’s brand loyalty or the influence of friends and family can be an effective way of forming a relationship with an automaker. Or, you can decide that you just like one or two manufacturers more than the rest, and that’s okay. Narrowing down a brand or model will help you narrow your search and be less overwhelmed by options. Consider factors like the car’s use, driving distance per week, the mileage and the price of gas in your area, and maybe even your typical parking situations.

Used Car Terms: CPO and Second-Tier Vehicles

There is significantly more risk involved with buying from an individual seller rather than going through a dealership. Used cars can be identified two ways. Certified Pre-Owned, or CPO, vehicles go through a checklist of inspections, repairs, and normally have established warranties. Second-Tier vehicles refer to cars that may be the affordable solution to a higher priced model. For example, Honda Accord to the Nissan Altima. Both perform similarly, but one will consistently have a lower price tag.

How to Make Depreciation Work In Your Favor

Depreciation, as it applies to new cars, explains the fall in value of a new car after it is driven off the lot. Cars with depreciated value, such as a car that’s just a couple of years old, will sell for significantly less on a used car lot. Searching for a model similar to the brand-new car you idolize, such as the model from two years ago, will help you make educated and smart purchases.

Can You Trade in Your Current Vehicle?

Trading in your current vehicle is a great way to immediately lower the price on the car you want to drive home. Fairless Motors will trade in your used car for your new vehicle. Visit our appraisal page to get an initial quote on how much you can save on your new car by trading in your current car.

Browse the Used Car Inventory Before You Visit A Dealership

In today’s market, a respectable dealership will have a reliable website and maintain an updated inventory. Being able to review inventory before going to see cars on a lot will not only show you what’s in stock, but their advertised prices as well.

Verify Prices and Availability Before Going to See the Car

Calling a dealership to confirm the online price and that the car is still available is a great way to make sure the dealership’s inventory and prices are accurate and up to date. At Fairless Motors, we update ours daily to make sure you can see our current selections, of low mileage, late model vehicles online.

Make Sure You Ask for All Specs and History

You can see a lot of specs on an online inventory or on a flyer your salesperson will give you. But what about repairs, accidents, and title history? Find the car’s Vehicle Identification Number (VIN) and run that through CarFax. If the VIN isn’t on the car’s listing, you can often find it on the driver-side door, left side of the dashboard, or the steering wheel. The VIN is 17 characters long and is usually made up of both numbers and capital letters. All Fairless Motors, all vehicles have undergone a complete inspection, been professionally detailed, and come with a free CarFax History Report.

See How Buying Used Will Affect Your Insurance

There’s nothing like the disappointment of getting ready to purchase your dream car, checking your insurance, and then finding out purchasing that exact car will send your insurance premium through the roof. Call your insurance provider or use any online tool they have to see how your new purchase will affect your premium. Generally, older cars have cheaper premiums, but automaker, model, and the vehicle’s history are the factors that affect your premium the most. Things like safety features, price of replacement parts, the model’s rate of theft or break-ins, or even the name of the model having words like “turbo” can raise insurance premiums. Although the car itself may be within your budget, double check that the insurance coverage is also within your budget.

You Can Finance A Used Car with Low Credit

A bad credit score can leave people feeling helpless or like they won’t ever be able to afford a car that would otherwise fit in their budget. At Fairless Motors, our specialized auto financing team can help you find affordable loan options regardless of your credit history. Our goal is to see you walk away happy and confident with your new vehicle purchase.

Your Used Car Buying Checklist

After reading this, don’t be overwhelmed. Here’s a quick checklist of things to know or have while searching for your perfect used car:

• Your budget range
• Your insurance payment range
• An idea of the car you want and what you need it to do or have
• Check your dealership’s online inventory
• Do a credit check with the dealership for financing options
• Verify the car’s price and availability
• Verify the car’s history
• See how the car affects your insurance premium
• Go see the car and test drive it!

7 Ways to Rebuild Your Credit

Having good credit is necessary for several reasons. Without good credit, it can be very difficult to buy a house, get a new car, or open a new line of credit. Your credit score and credit history can even impact your chances of getting a new job. If your credit is less than great due to bankruptcy, missed payments, or any other reason, you need to start rebuilding it. Here are seven ways you can do so.

Keep Current with Your Bills

Paying your bills on time is one of the best things you can do to rebuild your credit. It shows that you’re responsible and that you can manage your finances and your debt. Missing a single payment, especially if it’s for your car, mortgage, or credit card, can do more damage to your credit score than you might think. If you stay current on your bills, you should start seeing your FICO score slowly increase every month. Your payment history makes up 35% of your credit score, making it the largest factor in determining your score.

Do remember that some bills don’t affect your credit score at all. Utility bills, for example, aren’t considered credit, so they won’t have any impact on your score. Only loans, including mortgages, car loans, and credit cards, are what affect your score. But that doesn’t mean you should get behind on your utility bills, though.

Pay Down High Balances

Another 30% of your credit score is determined by your credit utilization. This is the amount of charges you’ve made on your credit cards, also called revolving credit. If all your cards are maxed out, you have 100% credit utilization. That’s going to greatly impact your score. Those with outstanding credit ratings will usually have a credit utilization of less than 10%. Anything under 30% is acceptable, though.

The best way of dealing with high credit utilization is to make regular payments that are above the minimum required amount. This helps to pay down your balance faster since a good amount of your minimum payment simply goes to cover the interest every month.

Only Open New Lines of Credit When You Must

Another factor that makes up 15% of your credit score is the average age of your lines of credit. Opening new lines of credit lowers this average, which hurts your overall score. Do what you can to avoid getting new credit cards while you’re working to rebuild your credit. Those with high credit scores have a credit age of 11 years, while those with very low scores have an average credit age of about six months. The more credit cards you have, the more you’re likely to be tempted to use them. By not opening new lines of credit, you’re keeping yourself from racking up more debt. However, it is helpful to have one older line of credit on your account. When paying off your debt, keep the credit card account you’ve had the longest, that will impact your credit score in a positive way. And once you pay off other cards, cancel them.

Inquiries Do Affect Your Score

When you apply for a new line of credit, the creditor does what’s referred to as a credit inquiry. This gives them access to all of your credit history and other information, so they can see if you’re likely to be able to pay your monthly payment. Each time someone does a credit inquiry, it temporarily affects your score, dropping it a few points. Inquiries make up 10% of your FICO score, so it’s a fairly small impact; however, the more credit inquiries you have, the lower your score will get. Do your best to avoid applying for any type of loan or credit card, especially if you don’t really need it.

See a Credit Counselor

If you’re having trouble getting a handle on your expenses and credit on your own, you can see a credit counselor. These experts can assist you with prioritizing which credit cards to pay on first and help you understand how your credit score is affected by everything you do. They can help you make a budget that covers all your necessary expenses, lets you start tackling your debt, and still leaves you a little bit of money every month for fun.

Beware of Scams

Watch out for scams that promise they can quickly fix your credit. These companies say that for one small fee, they can wipe out anything negative on your credit report and up your credit score without you really doing anything. That’s simply not true at all. There’s no quick and easy fix for a low credit score. It takes time and dedication to rebuild your credit. Also, remember that things such as foreclosures and defaulting on debt will be on your credit report for seven years or more. There’s no way to remove them before that, and anyone who says otherwise is not being honest. While it’s unfortunate that nothing you do can speed up the process of removing these things from your credit, it’s simply something you have to accept.

Watch Your Credit Score

If you’re working on repairing your credit, you’re likely watching your FICO score like a hawk. That’s a good idea since you’ll be able to see how your actions are affecting it. However, don’t obsess too much or get too depressed if it seems like your credit score isn’t increasing as quickly as you’d like it to. It will take time. Also, be sure to check your credit report every year. You can obtain a free credit report yearly from each of the three main credit reporting companies, and it’s a good idea to do so. This will let you see what’s been reported to credit monitoring companies. If you’ve been the victim of identity theft, this is one of the best ways of catching it. You may see something on the report that you didn’t know about. If it’s a line of credit you didn’t open, you can go about contacting the credit company to close the account.

These seven tips will help you rebuild your credit. Again, it takes time, and it won’t happen overnight. With a little bit of dedication, though, you can do it.

Fairless Motors is a family-owned used car dealership with more than 30 years of experience helping people just like you get the financing for your ideal pre-owned vehicle. Our bad credit auto loans make financing available to all drivers, regardless of your credit score or history. Our friendly professional team will work out your ideal loan amount, the payments you can afford, and the right term for your loan. It’s quick. It’s simple. It’s fair. And making your car loan payments on time every month will go a long way towards raising your credit score.

Tips on How to Maintain Your Car

After the acquisition of a family home, automobiles are often the next most significant purchase that we make in our lifetimes. While we usually buy cars more often than we buy houses, they are still a long-lasting purchase and the buying process should be approached with deliberation to avoid mistakes. With better materials and the amount of precision that today’s cars are built with, they are lasting a much longer time, making pre-owned cars a very attractive option. If you opt for a used car, giving it the proper attention can help it to last longer and run better with fewer days spent in the repair shop.

Consumers who are looking for an affordable transportation option often find a pre-owned car that meets their needs. Proper care can help a well-built car last years, while providing reliable transportation. Proper car maintenance is as simple as tracking fluids, lubricants, and systems. Throw in some protective measures like sun shades, tire rotation, and undercarriage waxing, and you will be good to go. The following tips on proper car maintenance can help you keep your car running well for many years to come.

Regular Oil Changes
Oil is the blood of a car engine and must be changed on a regular basis, and this is one area where it makes sense to spend more for a better product. Putting in the best oil you can afford into your car will help it run better and prevent some costly engine problems. Don’t forget to change your oil with the proper oil weight as often as recommended by your manufacturer or you could end up with a very expensive engine problem that can put your car completely out of commission.

Tire Quality and Rotation
Tires can be expensive to replace but keeping them properly rotated can help to add miles to their life. Your entire car is resting on the tires and it does not make sense to go cheap when purchasing them. In fact, cheaper tires will wear more quickly and require replacement sooner than their higher-quality counterparts. This is another area where it makes sense to spend a little more to get a higher standard of product.

Change Fluids and Coolants
When you take your car in for the regular oil change, have the shop conduct a full review of your car’s basic systems. This will prevent costly repairs down the road that can be easily avoided by maintaining the proper level of fluids. Coolants should be changed based on the manufacturer’s maintenance schedule and should be on your list of regular car maintenance tasks. If you are feeling truly inspired, it’s worth the time to learn how to check and properly manage your car’s fuel levels. This is one aspect of car maintenance that you can carry out yourself if you have the correct knowledge.

Keep It Clean – Especially the Undercarriage
Keeping your car washed and clean does make it look better, but it also helps to protect the body from damage and corrosion. When washing the car, don’t forget to get the undercarriage nice and clean. It is in this area that dirt and debris can build up and create problems if left unattended for too long. Regular washing and waxing is a great way to protect your car well into the future.

Maintain Proper Lubrication
The interworking joints and gears of a car’s engine must be properly lubricated to function well. Do not overlook this step in the maintenance process. Because we don’t often look that closely into the inner workings of car engines, this task is often left until it is too late, and the damage is done. Keeping everything lubricated helps to decrease friction and the type of wear and tear that can lead to more expensive engine issues.

Protect the Interior from Sun Damage
No one wants to drive around in a car with a cracked dashboard or other unsightly interior damage. If you are going to be parked outside for an extended period of time, look for a shady spot. If you live in a warm and sunny environment, or in the hot summer months, and park your car outside on a regular basis, it’s worth the time and effort to invest in a foil sunshade. These simple products protect your car from excessive heat and potentially damaging sun rays. In addition to the cosmetic and surface damage that the sun and its heat can cause, is the potential harm to your car’s computer and electronic systems.

Replace Brake Fluid and Pads as Necessary
Brakes are a key part of the car and should be treated accordingly. If you are taking your car in for regular maintenance such as oil changes and tire rotation, the brakes should also be checked during these appointments. Brake pads and rotors should be changed as necessary and keeping brake fluid at the correct levels will help to keep those more expensive equipment items running well. If your brakes are squeaking, it is likely time to give them some attention. However, if you are properly caring for your brake system, they should never squeak or screech.

Following this list of helpful and straightforward tips can keep your vehicle well-maintained and running smoothly. With the proper care and attention, today’s best-made cars can last for hundreds of thousands of miles, making them a functional and wise investment. When you have a regular maintenance schedule that you follow, these steps are simple to follow. When you buy your new car, be sure that you take the time to find a garage that you can trust. Having a partner working with you to keep your car running smoothly can make a world of difference! Follow these simple steps to keep your car in great shape for years to come.

And when it’s time to replace that vehicle, think of Fairless Motors. Not only do we maintain an extensive inventory or low mileage pre-owned vehicles, we will be happy to take your vehicle in on a trade-in, which you can put towards the purchase of your new car or truck. Go to our Value-Your-Trade page, fill out the simple form, and we’ll get back to you within 48 hours with an estimated appraisal.

 

The 10 Best Used Trucks Under $15,000

Looking for a great used truck, but don’t have a huge budget? There are a lot of durable trucks out there that are priced quite affordably. If you’re in need of a dependable used truck, but don’t want to spend a lot of money, here are ten of the best used trucks you can buy for less than $15,000.

2010 Dodge Dakota

The Dodge Dakota has been known for its reliability since it wa introduced in the late 1980’s, but the 2010 model brought power into the equation. This truck features a V8 engine and has a good amount of towing capacity. If you’re in need of better fuel economy, the truck is also available in a V6 version, and there are a number of different cab configurations available, too. U.S. News & World Report named the 2010 Dakota one of its top models for the year. The basic used Dakota for this model year retails for around $12,500. If you’re willing to pay a little more, a fully loaded 2010 Dakota is usually priced around $18,000.

2006 Ford F-150 King Ranch

While it may be over ten years old, the 2006 Ford F-150 King Ranch is still a strong workhorse. The F-series is one of Ford’s most popular lines of trucks, and the 2006 SuperCrew Cab is available for less than $15,000. It features a five and a half foot bed, a 5.4-liter V8 engine, and can produce up to 300 horsepower. The only downside for some is fuel economy. While it puts out up to 365 pounds of torque, it only gets 16 mpg on the highway. City driving is even less, averaging around 12 mpg.

2012 Nissan Frontier

The Nissan Frontier has always featured a nice amount of power for the cost. The 2012 model offered a V6 engine along with an interior that was quite spacious and comfortable. The standard model was a V4, which did provide better fuel economy; but since most reviews published at the time strongly suggested going for the V6, that version has become the more common and popular model. You can find a 2012 Frontier for an affordable $13,000.

2009 Toyota Tacoma

With high marks all around, the 2009 Toyota Tacoma was one of the best performing vehicles of its generation. It was designed to be off-road capable, though many did criticize the fact that it doesn’t provide a comfortable ride. That aside, the Tacoma came in either a V4 or V6 option and could tow as much as 6,500 pounds. Kelly Blue Book (kbb,com) gave the double cab model a strong 4.5 stars rating out of 5. Today, you can find a used 2009 Tacoma for less than $10,000.

2003 Dodge Ram

If you’re in need of a truck that can tow a good amount, you may want to check out the Dodge Ram 2500 Turbo Diesel. This 2003 model may seem a little too old, but it has many different options and has remained quite reliable and popular despite its age. You can purchase this model with four-wheel drive, a V6, and an eight-foot bed. The high-output turbodiesel provides up to 305 horsepower and over 550 pounds of torque. All this and a price less than $15,000 make it a very attractive option for a used truck.

2006 Chevy Silverado 1500

The first Chevy on this list is the 2006 Silverado 1500, with a rating of 4.7 out of 5 on Edmunds.com. The Silverado has proven to be very popular regardless of which model it is. The 2006 Silverado offers a crew cab, a V8 FlexFuel engine, automatic transmission, and two-wheel drive. The budget version has a five and three-quarter bed and offers 335 pounds of torque. If you need more power and can up your budget a bit, there’s a 6.0-liter version available. The interior is nice and quite roomy, and the crew cab option gives your passengers plenty of space. This model also gets around 14 mpg on city streets and 19 mpg on the highway.

2009 Ford Ranger FX4

Another Ford truck that comes at a bargain price is the 2009 Ford Ranger FX4, however, most used models may be hard to come by since this truck is considered one of the best small pickups around. It doesn’t matter how old it is, it can still keep up with today’s needs. One popular option is the four-wheel drive Super Cab. This model is equipped to go off-roading and features a 4.0-liter V6 engine. With its six-foot bed, there is enough space to carry just about everything you might need to haul.

2009 Toyota Tundra

If the Ranger FX4 from 2009 isn’t quite right for you, you might take a look at the Toyota Tundra from that same year. This truck is powered by a V8 that provides a very solid ride even when off-roading. The four-wheel drive option is preferred, but if you can’t find it, there’s also a rear-wheel model. A fully equipped 2009 Tundra can pull as much as 10,800 pounds, which is quite impressive. The standard model also has more features than many of its competitors, though the interior isn’t really anything special. You’ll find this version of the Tundra priced as low as $13,000.

2009 Chevy Colorado

The second Chevy and third 2009 model to make the list is the 2009 Chevy Colorado. The crew cab model is a great midsize turbo-diesel truck. The 2009 model was upgraded from the previous generation, which was much more compact. If you find a 4×4 with a 5.3-liter V8, snatch it up as fast as you can. It’s one of the best used trucks you’ll find, especially if you’re on a tight budget.

2006 GMC Sierra 1500 Denali

The 2006 model of the GMC Sierra 1500 Denali earned its place on this list by being both affordable and quite luxurious. If you’re looking for a crew cab designed for comfort and power, you’ve found the right option. The Denali has a five and three-quarter bed, a 6.0-liter V8 engine, and 380 pounds of torque. The only thing it doesn’t offer is good fuel economy. On the streets, it only gets about 12 mpg, while highway fuel usage is rated at 16 mpg. Still, for what you’re getting, it’s not a bad trade-off.

So, if your budget for a reliable used pickup truck is in the $15,000 range, we at Faitless Motors suggest you take a look at some the trucks we believe will provide you with a good vehicle for the money. Our truck inventory is constantly changing so we recommend you stop in and check them out. Our family operated dealship provides excellent values on all our pre-owned vehicles, and our dedicated team is always ready to help our customers find the vehicle that best fits their needs, at an affordable price. And whether you have good credit, poor credit, or no credit at all, our financial team will help you secure the financing option that works best for you. We’re conveniently located at 427 Lincoln Highway in nearby Fairless Hills, or call us at 855-560-9740.

 

 

 

Use Your Tax Refund as A Down Payment To Replace Your Old Car

Having an older car isn’t necessarily a bad thing. However, if your days are riddled with worry about whether your car is going to take you from point A to point B without breaking down, or you’re spending hundreds each month on repairs, it’s time to upgrade to a better vehicle. For the average American living paycheck to paycheck, it may be challenging to come up with a down payment for that new car you need. Fortunately, this time of year there is the option of using a tax refund as a down payment for your purchase.

Average Tax Refund Amounts
According to the Internal Revenue Service, the average tax refund amount is listed as $3,120. This figure may be more or less depending on factors such as the previous year’s earnings and tax credits available. The question that most tax filers have is how to better capitalize on this small financial windfall. In other words, how can you put this money to work for you?

From investments to home down payments, new appliance upgrades, to higher education, the list goes on and on. However, if you’re battling with securing a dependable vehicle to take you to and from work every day, using a tax refund as a down payment is a practical choice.

Buy Used Cars at A Dealer Vs. A Private Owner
Sure, you may be tempted to pay cash for a car found on Craigslist or from a similar source. The idea of not having a car payment for years to come is an appealing one; we agree. Nonetheless, in most cases when a used car is purchased from a private owner, there is no recourse if the car breaks down within a few days of spending your hard-earned tax dollars. On the other hand, cars that are sold from highly reputable dealerships like Fairless Motors, are carefully screened and inspected for quality, performance and reliability.

You can also benefit from the following:
• Warranties – Different used car dealers may offer personalized warranties, so if the car breaks down during the warranty period, the opportunity is generally available to make amends through an exchange, repair or refund, depending on the contract signed. A private car owner offers no such guarantees when selling used vehicles.

• Wide Selection of Inventory – Now that you finally have the funds and leeway to shop for a reliable vehicle, don’t miss out on a chance to get a real upgrade vs. settling for an outdated car, putting you back to square one after a while. It’s important for potential car buyers to complete due diligence and perform in-depth research before buying a car outright, especially if dealing with a private seller. Don’t make the rookie mistake of blowing your tax dollars on a “lemon”, possibly even featuring manufacturing defects.

Spare yourself the hassle by shopping with a reliable dealership who has your best interest at heart. Many of the used vehicles on sale at our dealership are just a few years old. Moreover, all the vehicles on the lot have been checked carefully and test driven to verify that it’s safe to get behind the wheel. A cash purchase from a private owner may save you money today, but in the long run, it could wind up costing you much more.

Improve Your Credit – If you have bad or no credit at all, taking out a car loan is one of the easiest ways to build or improve your credit over time. The key is making the payments on time. Many of our shoppers come in discouraged about their credit situation – and walk away with a renewed lease on life.

With a new car loan, you get the option to correct past financial mistakes or start building a more secure financial future. In a world that runs on credit ratings, Fairless Motors will often approve applicants with bad credit, even if you’ve been turned down elsewhere. So, whether you’ve been plagued by a bankruptcy, missed payments or other negative records on your credit report, we look at life through the windshield, not the rearview mirror.

Added Bonuses
As mentioned earlier, all our vehicles are carefully screened. As a promise to you, all the cars on the lot have undergone:

• A Series of Test Drives
• Complete Inspections
• Paint-Less Dent Repair (If Applicable)
• Professional Detailing
• Service and Maintenance
You will also get a complimentary Carfax or AutoCheck vehicle history report.

Types Of Cars On The Lot
Come in to see our top-of-the-line pre-owned vehicles, including:
• Acura
• Audi
• BMW
• Cadillac
• Ford
• Lexus
• Mercedes-Benz
• Nissan
• Toyota
• Volkswagen
Get all your favorites at a fair price!

Shift The Gears In Your Favor
This tax refund season, make a sound financial decision to spend your money wisely on an essential tool that will help move you forward. A reliable vehicle is not a luxury, it’s a practical way to complete day to day activities in less time and with fewer frustrations.

In Philadelphia, for example, the bus or subway lines are always available. However, a private and reliable vehicle provides the option to get from point A to B faster, easier, and in more comfort. Whether you’re a single professional or a family of four, Fairless Motors is driven to help our neighbors and friends experience the delights of car ownership, for less.

Accelerate Your Goals
To further leverage the current funds received from a tax refund, also consider making a bigger down payment to lower the interest rates or decrease the monthly notes due.

Get Back On The Road Again
Go through life with confidence and fearless independence behind the wheels of a stylish and comfortable pre-owned vehicle. Fairless Motors is a used car dealership based in Fair Hills, PA, and has been serving customers in Pennsylvania and New Jersey for more than 25 years. When you come into our dealership, there are no pushy salesmen on our lot. You’re in the driver’s seat at all times. Give us a call or stop in and leisurely browse through our extensive inventory and get answers to any questions you may have. We are conveniently located at 435 Lincoln Highway in Fairless Hills; our number is 855 560-9740.