Tag Archives: credit repair

Bad Credit Auto Loan: Top 10 Most Reliable Cars

Recently, Warranty Direct celebrated 15 years of ranking vehicle reliability, and to mark the occasion, they released their top 10 list of the most reliable cars of the past 15 years.

Their website Reliability Index breaks down the raw data of a car’s average repair costs, mileage, age, and chance that parts of the car will have maintenance issues like the transmission or braking system. Taking all these factors into account, they calculate an overall reliability index number that tells consumers at a glance if the car is reliable or not. The lower the number, the more reliable the vehicle will be for the driver.

Here is the top ten most reliable vehicles according to the Reliability Index along with their index rating.

1.  Mitsubishi Lancer – 6
2.  Vauxhall Agila – 8
3.  Suzuki Alto – 9
4.  Toyota Aygo – 10
5.  TIE: Honda HR-V and Volvo S40 – 16
6.  Mazda MX-5 – 19
7.  TIE: Mercedes E Class and Toyota Yaris – 20
8.  Honda Jazz – 21

Readers, we want to hear from you! What do you think of the list? Were there any vehicles on the list that surprised you? Leave a comment below, and tell us what you think!

Are you looking for a reliable new or used vehicle? Approved Loan Store can help, no matter what your credit situation! Fill out our secure online auto loan application here, and get more auto news and buying tips by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Americans Getting Into Cars, Back to Work

In the past, we have written about the strong correlation between car ownership and the unemployment rate. When more people have cars, unemployment is usually down because more job opportunities are open to them. A job hunter who owns a car is not limited to places along public transit routes, and once they get the job, they can be more reliable than an employee who hopes the bus is running on time.

The latest jobs report, which was released this week, showed that this correlation still holds true. Unemployment has dropped to 7.8 percent while car sales have continued to go up throughout 2012.

Now, some people will say that this correlation doesn’t suggest that car ownership leads to better job security and will take the other side of this “chicken-or-the-egg” debate. They will claim that because more people are employed, more people have the money to spend on a new car, and they would be partly right. Yes, some car buyers are just looking to upgrade their ride or buy a car that is more luxury than necessity, but take a minute and look at the auto sales numbers for 2012. There are not that many people buying a car just for fun. The economy is better, but it is not that good.

Coming out of this recession, Americans are valuing car ownership. Millions of people have been out of work, and they know the frustration of riding the bus or relying on a friend to drive them to yet another job interview. With Americans going back to work and auto loans accessible to more consumers, even those with subprime credit, it makes sense that people are strengthening their job security by getting a car now.

Are you ready to get into a new or used car today? Approved Loan Store can help you! Good credit, bad credit, no credit, we want to get you in the car you want at terms you can afford! Fill out our secure online auto loan application here, and be sure to like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

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Brooklyn Dealership to Pay Fines, Restitution for Misleading Customers

At Approved Loan Store, we strive to make the auto buying process easier and better for all of our customers, but we hear horror stories all the time about other dealerships and their deceptive practices. Many of our customers have been to other dealerships and had such a poor experience that they are reluctant to even set up an appointment with our Special Finance Representatives. This is why we get so upset when we read about dealerships (particularly local dealerships) that are taking advantage of customers and not following the law.

On Sunday, New York State Attorney General Eric Schneiderman announced that 46 consumers who purchased cars at Brooklyn’s Giuffre Hyundai, Giuffre Kia, Giuffre Mitsubishi, and Giuffre Mazda dealerships would receive $300,000 in restitutions. The dealership used fraudulent sales practices and additionally misled customers about the terms of their car sale and financing.

Sadly, most of these customers were vulnerable to these tactics. Brooklyn State Supreme Court Judge Bernard J. Graham stated that the dealership targeted “older persons, unsophisticated, or unfamiliar with English,” and the dealership sold them cars “they never intended to buy or [at] a price that was dishonestly represented to them.”

At Approved Loan Store, our goal is to get our customers into cars they want and cars they can afford. Every step of the way, we strive to give our customers a great car buying experience, and Approved Loan Store’s Special Finance Representatives make sure that the financing is clear and reasonable. Our results and the glowing testimonials we receive every day are proof that our methods work, and we are glad that dishonest dealerships are being held accountable for their actions.

Are you ready to get into a new or used car today? Fill out our secure online auto loan application here, and get the latest car news and buying advice by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Consumer Alert: Westchester Car Buying Scam

At Approved Loan Store, we want to make your car buying process easier and more pleasant. Unfortunately, there are people who offer car terms that are too good to be true, and we have to deal with the fall-out of disillusioned consumers who fell prey to these scams. That is why we wanted to alert our readers to a recent car buying scam in Westchester. It is our hope that by reporting about this scam, car shoppers in the New York City area will not fall for it and then wind up out of money and without a car.

We heard about this car buying scam through the Scarsdale Patch. According to their report, a Westchester man was trying to buy a 1961 Impala from a seller on Auto Trader. The buyer was instructed by the seller to wire the payment for the car through a Google Wallet account. Once the transaction was complete, the seller promised that the car would be shipped. Anyone familiar with these kinds of scams will know how it turned out. After wiring the money late last month, the buyer suddenly couldn’t get a hold of the seller, and even more infuriating, the buyer saw that the car was still listed as available on the Auto Trader Website.

Not everyone who purchases a car through Auto Trader, Craigslist, or other websites has a poor experience. Car buying online can seem convenient, and we have many car buying tools on our website including our online auto loan application. However, there are risks to going through a private buyer on Auto Trader or Craigslist. Even if the seller had shipped the 1961 Impala, there is no telling what condition that car would be in. Furthermore, if a seller asks to have money wired in advance, run the other way. Money transfers are an immediate red flag. To avoid these problems, we recommend buying from a car dealership, preferably an Approved Loan Store dealership. If a private seller still seems promising, though, deal with the seller in person and get the vehicle inspected before purchasing.

Are you looking to get into a new or used car? Good credit, bad credit, no credit, we want to help you get into a great car at terms you can afford! Fill out our secure online auto loan application here, and connect with us by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Are You Paying Too Much for Auto Insurance?

At Approved Loan Store, we want to make sure our customers get the best possible deal on an auto loan, but there are more costs to owning a car than just the loan payments. There is the cost of gas, general maintenance, and of course, insurance. We want to help our customers save on these other car costs, so when we saw these tips for lowering car insurance costs over at Fox Business, we wanted to share them with our readers. Please remember that discounts and terms of those discounts vary between insurance companies, so ask your insurance company if these discounts are applicable.

If You Are in a Committed Relationship…
Married couples and unmarried committed gay couples can often receive discounts, especially if they are insuring multiple vehicles.

If You Are a College Student…
Full-time students can receive a discount. Sometimes the discount is based on grade point average, but that isn’t always the case.

If You Installed a Car Alarm…
Many insurance companies will offer a discount for installing car alarms, fuel or ignition cutoff switches, vehicle identification number engravings, or car tracking systems.

If You Switched to Paperless…
So many insurance companies want to brag about going green, and they give incentives to customers for e-mail communication instead of paper mailings. Also, if you are thinking about switching to a hybrid, some car insurance companies are giving as much as a 10 percent discount.

If You Were in a Fraternity/Sorority…
Former frat brothers and sorority sisters can get up to an 8 percent discount. The reasoning is that individuals involved in these kinds of groups are more responsible and less likely to be reckless drivers.

If You Served Your Country…
Many companies want to ease the financial burden of those who have served in the armed forces, and car insurance companies are no exception. Some offer a 15 percent discount when the driver is home in the states and up to 80 percent when they are deployed.

If You Have Good Credit…
This is a tip we have mentioned before, but it bears repeating. By improving your credit, you can save money on so many things including car insurance.

If You Are a Teacher/Doctor/Police Officer/ Self-Employed…
There are numerous discounts based on profession, and it isn’t just for servicemembers. Again, check with your insurance company because the variety of professions included is shocking.

If You Are a Loyal Customer…
Have you been with your insurance company for 5 years? 10 years? If so, you might be eligible for a customer loyalty discount.

Are you taking advantage of all of these discounts? Did we miss any lesser-known discounts? Leave a comment below, and tell us what discounts you are taking advantage of with your insurance!

Looking for a new or used car? Concerned that your credit is holding you back? Approved Loan Store wants to help you! Fill out our secure online auto loan application here, and keep up with the latest news and auto buying tips by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Cedar Rapids Boy Steals Family Car, Crashes 4 Blocks Away

There is a phase that a lot of young kids go through where they threaten to run away from home. They pack up their backpacks with a couple of peanut butter and jelly sandwiches, a beloved stuffed animal, and their Nintendo DS, but usually that is as far as it goes. A 7-year-old in Cedar Rapids, Iowa, however, decided to take it a huge step forward and steal his mom’s car for a quick getaway.

Last Saturday at around 9 a.m., the unnamed boy took his mother’s car keys and drove down 33rd Street to Edgewood Parkway. On a typical day, this area of Cedar Rapids is fairly busy with a movie theater, numerous restaurants, and a mall close by. Fortunately, he only got about a block down Edgewood before he crashed the car between a bank and a Wendy’s restaurant, and despite the state of the car, he did not sustain any serious injuries.

As of publication, it is uncertain what sort of punishment the boy will receive. He has been cited for a laundry list of violations and misdemeanors including driving without a license, failure to maintain control, hit-and-run, and no insurance. Unfortunately, this is not the first time that he has tried to get the car from his mom. Police Capt. Bernie Walther told ABC affiliate KCRG, “He has grabbed her keys before and tried to do this, but this is as far as he’s ever gotten.”

At Approved Loan Store, we know that our customers aren’t always looking for a new car under the best of circumstances. Whether it is a challenging credit situation, a recent car accident, or a tot taking the family car for a joyride, we want to make the car buying process as easy as possible. If you’re looking to get into a new or used car, fill out our secure online auto loan application here, and get the latest auto and credit news by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube.

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Auto Loan: New FICO 8 Unnecessarily Complicates Credit Score

Maintaining a good credit score is a tough task that takes time, attention, and diligence on the part of the consumer. Most Americans don’t even know their credit score, much less what it means or how it is calculated. Consumer groups and government agencies like the Consumer Financial Protection Bureau are trying to demystify credit reports and credit scores for the general public, but unfortunately, the credit reporting industry is, perhaps intentionally, making credit scores more confusing.

FICO scores have been the credit industry standard for years, ranging from 300 up to 850. When lenders talk about your credit score, it is likely they are referring to your FICO score. Recently, the Fair Isaac Corporation, which produces the FICO score, touted that the number of consumers in the top tier of credit scores has increased, and the number in the bottom tier has decreased. This sounds like really great news until Ann Carrns of the New York Times took a closer look.

As it turns out, the numbers they were touting were not based on the FICO score but rather a new-and-improved FICO score, FICO 8. FICO 8 is a new formula used to calculate that all-important credit score which can mean the difference between getting approved for a higher amount on a car loan or getting a lower interest rate. Fair Isaac Corporation will disclose that over 76,000 creditors are using FICO 8, but they would not say how many creditors are using the older FICO score model or how a consumer can find out which model a particular creditor is using. Even more frustrating, the FICO 8 credit score is not available for purchase from Fair Isaac Corporation, so consumers are left in the dark as far as their FICO 8 score is concerned.

I’ve been writing about the credit industry and how it relates to the auto industry for a while now, and this is one of the most ridiculous stories I have ever heard. Through this blog, we are trying to simplify the car buying process and give our readers the most basic information that every consumer needs to know to improve their credit and get the best rates on an auto loan. When it comes to credit scores, we often tell people to stick with the original and the industry standard, their FICO score. Now, even that most basic tip has been complicated with the old model FICO score vs. the FICO 8 model. The Consumer Financial Protection Bureau has promised that they will be closely monitoring the credit reporting industry, and I sincerely hope that they crack down on this nonsense. One last message to FICO: Your actions are confusing consumers and making credit way too complicated. Please stop.

No matter if you have good credit, bad credit, or no credit, Approved Loan Store wants to help you get into the car you want at terms you can afford! Fill out our secure online auto loan application here, and keep up with the latest auto news and consumer alerts by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Auto Loan vs. Cash: When a Loan is the Better Choice

Last Friday, guest blogger Lance from “Budgets are Sexy” was featured on MSN Money and stirred up some controversy with the headline “Why a car loan can beat paying cash.” As expected, many cash-only advocates got very upset and all but called for the authors head to be served on a silver platter to Dave Ramsey. We wanted to take a quick look at why he took out a car loan instead of paying cash and then open it up to our readers for feedback.

First, he wanted to get an installment loan on his credit history. At this point, he had several credit cards which he paid off regularly and on-time, and he did not take out any student loans in college. With such a sparse credit history, he thought that an auto loan that was paid on time would make a good addition to his credit report.

Second, he got a 0.9 percent interest rate for 36 months. Some readers didn’t know why he would pay any interest rate on a purchase he could afford to pay with cash, but considering that the interest he was earning on his savings account covered the additional interest on the car loan, it was a smart choice. Under these circumstances, he built up his credit history, and it didn’t cost him anything extra.

Finally, he appreciated not depleting his funds to pay for the car outright. By taking out the loan, he could still maintain his emergency fund in case of job loss or medical emergency. Most personal finance experts recommend keeping an emergency fund with enough money to live on for six to eight months, and thanks to the loan, he could keep his six-month emergency fund.

What do you think about his decision? If you could pay for a car in cash, would you choose to take out a loan? Leave us a comment below, and tell us what you think!

Are you looking for an auto loan? Approved Loan Store can help! Fill out our secure online auto loan application here, and get connected with Approved Loan Store on Facebook, Approved Loan Store on Twitter, and Approved Loan Store on YouTube!

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Business Insider: In the Auto Industry, Subprime is Not a Dirty Word

Here at Approved Loan Store, we work with customers with all sorts of credit situations. While we help out plenty of customers with good credit scores find a better deal, our specialty has always been working with consumers who have subprime credit.

Now, the term “subprime lending” has become a loaded term because people associate it with subprime mortgages, but there are enormous differences between the subprime auto and mortgage industry as outlined this week in an article by Business Insider.

There are two main reasons why subprime auto loans are not the same risk of subprime mortgage loans. First, consumers default less on auto loans than on mortgages. Car repos happen much quicker than foreclosures, so consumers feel compelled to keep up with their payments. Besides that, a car is necessary for many people to make it into work, especially in areas of the country without public transportation options. If they don’t have a car, they have to rely on other people for a ride to work, to the grocery store, or to go out on the town. Most people will make cuts where they need to so they can maintain their car and their independence.

Second, subprime auto loans are not nearly the same risk for lenders as subprime mortgages. This is why so many of Approved Loan Store’s lender partners have been able to offer these auto loans to consumers with very low credit scores while they would deny that same consumer for a credit card, a mortgage, or a personal loan. For this reason, auto loans are a great way for consumers with challenged credit to re-establish themselves and build up a positive payment history. We call this the “Everyone Deserves a Second Chance” effect.

Are you looking to get into a new or used vehicle? Approved Loan Store wants to help, even if you have bad credit, good credit, or so-so credit! Fill out our secure online auto loan application today, and keep up with the latest in credit and auto news by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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Auto Loans and the Road Back to Good Credit

For consumers looking to re-establish a strong credit history, auto loans are becoming the best choice, even for those with especially poor credit.

The qualifications for mortgages, business loans, and credit cards have held steady with strict income and credit requirements, and consumers whose credit took a hit during the economic downturn are having a tough time getting back in good graces with lenders. As many of these applicants have been turned down for credit cards or mortgages, though, many of them have been approved for car loans.

For many consumers with poor credit, a car loan is perfect. Car ownership has been show to correlate with job security and less reliance on public assistance, and it is a purchase that most consumers want and need. Besides that, their credit score will improve as they make their car payments on time, provided they keep up with their other payment obligations of course.

This is one of the reasons why Approved Loan Store exists and why we do what we do. We want to help more people get into the car they want and need. Just take a look through our hundreds of testimonials, and you’ll see that we are the best in the business. Give Approved Loan Store a try by filling out our secure online auto loan application here. You will hear from one of our representatives in 24 – 48 hours, and they will set up an appointment with a Special Finance Representative at a dealership closest to you.

Want to know more about Approved Loan Store? Browse our website ApprovedLoanStore.com, and be sure to like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube.

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