Do you know how the credit scoring system works?

What's your credit score?

Lenders use an automated "credit scoring" system to assist them in make decisions on loan applications. If you have a high score (700 and above) you stand a good chance of being approved. If your score is lower, you might still have other factors that will lead to an approval. But if you score is low (620 and below) you’re in trouble.

If you fall into this last category there is still hope. Our book “The Insider’s Secrets” can help you improve your score and your chances of getting a good loan.

In recent years, creditors have developed a variety of methods for approving or denying loans. One way creditors can quickly review thousands of loan applications is by using automated "credit scoring." Even if you don’t have any plans to apply for a loan in the near future, you will someday and we think you should know about credit scoring.

Why?

Because the next time you do need a mortgage, car loan, credit card or any other type of loan, your score will have a significant effect on your chances of approval and the interest rate you are charged if you are approved. It will contribute to the repayment terms and other conditions of the loan. Your credit score alone could even play a role in whether you’re approved at all. To be on the winning side of this scoring system, it helps to know the basics.

What Is Credit Scoring?

Credit scoring is a system that's designed to improve a lender's ability to evaluate the likelihood that you will repay a loan. It's based in part on credit scoring "models," which are computerized systems that look at a variety of factors relating to many consumers personal information and credit histories, such as age, income and level of outstanding debt. These credit scoring models are used to determine the likelihood that a consumer will repay a debt. The first scoring models were developed by the Fair Isaac Corporation and have become known as FICO scores. While there are many scoring models in use today, the standard is still the FICO model. The 3 credit rating agencies each have their own models and many companies have developed models of their own. It’s a good idea to get credit reports from all three of the credit reporting agencies as they are likely to differ. We suggest checking your credit at least twice a year just to make sure that the information is accurate. You can find steps to correct errors and misinformation in The Insider’s Secrets and at our website, http://www.theinsiderssecrets.net/

Scoring systems collect this data to try to predict a consumer's ability and willingness to pay future debts. Scoring systems usually produce a numerical "credit rating score". Lenders use these tools to help decide if a loan should be made and to set repayment terms. This three digit number will play a big part in your ability to borrow money and, ultimately, the cost of repaying those loans.

If a Score Is Low

A score in the lower ranges will not automatically disqualify you from getting a loan. But it may prompt the creditor to review your history more carefully before making a decision whether to approve or deny your loan. A low credit score will likely result in a higher rate of interest or more strict repayment terms than those offered to others. If a lender's system is properly designed, tested and monitored, it should give a faster and more impartial evaluation of creditworthiness than a loan officer could have made on his or her own.

A credit score, however, may not be the best way to try to predict whether someone will repay a loan in a timely manner. Among the reasons: the information that was reported to the company that developed the model may be inaccurate or the statistical assumptions behind the program may not be sound.

Credit scores are usually not released to consumers, at least for free. But under the Fair Credit Reporting Act, if you are turned down for a loan because of information in your report, you have a right to get a free copy of that report and to have any mistakes corrected. Catching and correcting mistakes may have a positive effect on your rating and would likely improve the chances that your application will be approved. The Fair Credit reporting Act also grants consumers the right to a free copy of their credit report from each of the three credit reporting agencies. You’ll be able to take advantage of this law at www.annualcreditreport.com. These reports, however, will not contain a score, for that you’ll have to pay; on average about $16 per report.

Improving Your Score

Just like building your own history takes time, it also takes time to improve your score...and your chances of getting a loan at favorable terms. According to a consumer brochure published by the Federal Trade Commission, you can boost a low score by "paying down outstanding balances, concentrating on paying your bills on time, and not taking on new debt."

We also believe it's a good idea to review your file periodically, to make sure it accurately reflects your history. That way you can provide missing details or correct inaccurate information before it gets factored into your score. If you’re unsuccessful in getting erroneous information removed or would like to explain extenuating circumstances, the Fair Credit reporting Act allows every consumer to have an explanation of up to 100 words included in their credit reports.

Getting the right information and help

Besides giving you all the information, tools and techniques you will ever need to buy and/or finance an automobile, there are a number of chapters in “The Insider’s Secrets” that deal with credit scoring issues. We guarantee that you will be an expert on these issues and many more by reading, and taking advantage of, the information we provide. You can also find help at our website, http://www.theinsiderssecrets.net/

Payoff Your Debt Early, Increase Your Equity and Save on Interest Charges - An Easy to Follow Guide

This economy sucks and things are tough for almost everybody. We can sit around waiting for the government stimulus plan to bail us out individually or we can create a personal stimulus plan for ourselves. But how do we do that? Some people start buying more lottery tickets or try to start a home based business, while others turn to the Internet looking for the secret to quick and easy wealth.

The truth is that all of those options carry about the same odds, zero to none. And have you ever seen more scams, trying to take advantage of people trying to improve their situation? If you have an email account than you have no doubt been bombarded with every get rich quick scheme imaginable. Who do you trust? How do you filter all the junk that's out there today? You don't have to even try, there's a better way to create that personal stimulus plan and it's federally insured and flat out guaranteed to work. The only thing that can stop you is you!

We all wish we were out of debt and living the good life. I have a great life; wonderful children, beautiful grandchildren, a loving wife and soul mate, a beautiful home, a profitable and stable business, but life isn't all good, I still worry every day about the debt that I have and how to get rid of it. I've spent hundreds of hours on the Internet looking for a miracle solution, a quick fix. And I finally found one. And it's not a new concept at all but it is a greatly improved concept and has helped me ease the everyday stress and strife of debt.

I found a company that is helping me do something I could have done myself, but haven't. America is a nation of spenders, not savers and that's a big reason for the situation this country faces now, I'm no exception, I spent and borrowed to the limits of my income and credit and then the bottom fell out. I needed a forced savings plan and I found the best one ever.

This company has given me a proven, tried and true method to getting out of debt well in advance of the terms I signed up for, without me just throwing a bunch of extra money at this debt; a scary thing to do in this economy. With no out of pocket expense or upfront fees this method will pay off my mortgage nearly 8 years early, build my equity much faster and save me almost $129,000 in payments, $98,000 of which is pure interest.

And that's not all. I have 2 auto loans, one with a $28,000 balance and another with a $21,000 balance. The First one will be paid of 11 months early, save me $2975 in payments and a little over $1000 in interest. The second loan will pay off 8 months early, save me $2400 in payments and almost $1000 in interest. I'm also paying off my son's student loan 11 months early and saving nearly $3800 in payments and almost $600 in interest (the interest rate is very low or the interest savings would be even more).

If you've done the math you can see that this is a savings of nearly $136,000. That's huge in my life and probably would be in yours as well. I'm going to tell you how to do this for yourself and I hope you take advantage of the information. It will only be your loss if you don't. Contact me and I will direct you to the company's website; you'll see a list of features and benefits that should answer all your questions, you'll also see a couple of videos, one from the Oprah Winfrey Show where Oprah introduces a couple from the audience to a gentleman who shows them how the program works and explains the benefits and savings. Powerful stuff, as soon as my wife saw Oprah recommending the program she was all in. Most importantly, you'll see a calculator that will allow you to do side by side comparisons of any installment loan you might have. You will be able to see for yourself just how fantastic the savings are. And remember, there is no loan modification and your monthly payment obligations remain the same.

You will need a User ID and password to enroll however and I can provide you with those as well. There is no out of pocket or upfront fee to enroll, but nothing in life, nothing worthwhile anyway is truly free. This is the closest thing to free that you will ever find though. The company charges a deferred fee of $399. Here's the kicker though, they collect the fee over time, from the savings, you will never write them a check for the $399 and you will never be billed for it either. It's important to know that the $399 is money you're already committed to giving your lender, and see no benefits, or you can enroll in the program, let $399 of your savings go towards paying off your debt early, building your equity faster and reducing the amount of interest you pay on your loans. it was a no brainer for me and everybody I have shared it with so far.

In fact, you know what the biggest initial reaction I have gotten so far is? "I like to control my own finances". That's nuts, how are you in control of a loan where the lender has set the interest rate, the term, and the payment, you're not, the lender is in control. If you want to really control your own finances, pay the loan off early, build your equity faster and save on interest charges. By the way, everyone who has used that objection changed their tune when it was explained to them just how this method works.

I'm a recognized expert on personal finance, budgeting, credit, credit building and repair and I will tell you that this is the most dynamic and effective tool I have ever come across. Do yourself a great favor and contact me for details on how you can create this personal stimulus plan for yourself, you'll only be sorry if you don't.

My name is Gary and you can contact me through my website or at Gary@ theinsiderssecrets.net

I wish good luck to all of you regardless and hope we all get through these tough times as unscathed as possible. Hang in there!

"Test Your Car Buying and Financing IQ"

There are some basic questions that anybody looking for a vehicle and/or financing should know the answers to, and I don't mean "THINK" you know the answer, I mean "KNOW" the answer. Take this short test and find out if you really know the answers.

1. Am I really getting the best interest rate and loan terms that I qualify for?

2. What's the difference between a purchase and a lease?

3. How much should the used car I want to buy really cost? What's the true market value?

4. What is my present car really worth, and should I trade it in or sell it myself?

5. How can I be sure that my car salesman isn't just telling me what I want to hear?

6. The dealer suggested that I buy an extended warranty; should I, and if so what should it cost?

7. Where is the best value: in a new car or a used one?

8. I went to my bank to get an auto loan and was denied. Will a dealer be able to help me?

9. I went to a dealer that advertises "In House Financing"; will this help me rebuild my credit?

10. I hate the back and forth haggling when I buy a car. Is it possible to buy a car without all the haggling?

11. I need to buy a car; am I better off buying from a private party seller?

12. I'm considering a new car purchase and the dealer has offered to sell me the car at invoice. Is this a good enough deal?

13. How much down payment will I really need to finance a car?

14. Why is the dealer telling me that I'm approved for a $450 car payment, when I know I can only afford $250?

15. I just bought a used 2 year old car and it breaks down constantly; isn't there a lemon law that I can use?

16. I leased my car for 48 months; now, 2 years later, I would like a new vehicle. Am I stuck in this lease?

17. I have a low credit score and a credit repair specialist has recommended that I apply for an Employee Identification Number from the IRS and start using it in place of my social security number. Should I do this?

18. I bought a car a couple of weeks ago and now the dealer is telling me that the financing didn't go through. Do I have any rights here or do I have to return the vehicle?

19. I can't afford my car payment, but a friend of mine can. Can I simply turn over the car to my friend and let them make the payments.

20. I recently filed bankruptcy and will have a discharge letter shortly. I need to buy a car; will I have any hope of financing or will I be forced to drive a car that my small down payment will pay for?

How did you do? I'll bet that you'd be surprised at the real answers to the questions you're sure you got right.

If you can't answer, without any doubt, all of the questions that apply to your situation, then you're making a big mistake if you buy a car without first reading "The Insider's Secrets".

My name is Gary McClure; I am the author and a 30 year expert in every aspect of the automobile and financing businesses. You will find the answers to all of these questions and any others you might have in my book "The Insider's Secrets" or at my website. http://www.theinsiderssecrets.net/

Games the Auto Dealer Wants to Play

Auto dealers don't play these games for fun, they play them for profit. You don't h8ave to play the game, but you should definitely know the rules. From the minute you set foot on a dealership, sales personnel will start playing a game called "the steps to the sale". It begins with the "meet and greet" and continues with "building rapport, gaining trust and qualifying" right through to the "demo and write-up".

The game is putting you on this path and keeping you there until you drive away in their car. Your best chance at getting the vehicle you want, at a fair price, is to get off, and stay off, this well rehearsed path. Knowing the rules will save you time, aggravation and, most importantly, money.

Rule #1:
Don't tell the salesperson anything but your name. Believe me when I tell you that every single piece of information that you give your salesperson will help to lead you down the path to profit. Any good salesperson has been highly trained to probe for "hot buttons" and to use trial closes. The salesperson makes his, or her, living asking you questions. Don't play this expensive game.

Rule #2: The salesperson is NOT your friend. Don't buy into this trick for even a second. Every salesperson has been trained to do whatever it takes to convince you that the two of you are best buddies. The belief is that you will be more willing to follow your new buddy down the path to a sale. No salesperson gets paid to make friends, they get paid to sell you a car and they get paid a percentage of the profit. The higher the profit, the higher the commission. If you really do like your salesperson, you can become pals AFTER you buy your car!

Rule #3:
Don't feel bad about "misleading" your salesperson. If you remember rule #1, then you know not to tell your salesperson anything, especially how you intend to pay for the car you decide to buy. ALWAYS act as if you intend to pay cash (or write a check) for whatever car you decide to own. This is critical and might be the single most important piece of advice to follow. Once you find the car of your dreams, negotiate with the assumption that you will be paying cash for the vehicle. Not until you have settled on a price do you announce your intent to finance. This strategy keeps the focus on price and off of payments. Everything about the negotiation process is designed to get your attention off price and onto payment. This is absolutely a game you cannot afford to play. Don't feel bad if your salesperson accuses you of being "misleading" because he certainly has no intention of apologizing for any attempts to "mislead" you.

Rule #4:
New car buyers have to know about every rebate available. Once you have decided on the new vehicle you want to purchase, ask to see the dealer invoice. And in case you're wondering; in my 30 years in the business I have never once seen a fake invoice. Once you have the invoice, make sure you know what, if any, consumer rebates you qualify for. Besides the advertised rebates, most manufacturers also have a number of unadvertised rebates, such as; loyalty, military (active and retired), vendor (affiliates and suppliers), associations (farm bureau, national education assoc., etc.) and even employee discounts (some manufacturers apply these discounts to immediate family members). The dealer should be willing to give you information on any of these unadvertised rebates, but just in case he doesn't, you should be able to find them through the manufacturers' website or by checking with the regional sales office. Once you have all of the consumer rebate information you should find out if the dealer has a rebate coming. Known as dealer cash, most manufactures reward their dealers with incentives to help move aging or slow selling inventory. You can find these rebates in The Automotive News (The central branch of my city library has a subscription and I can find issues in the reference section) or at Edmunds.com. You should be able to combine any rebates, consumer and dealer, to make your best deal. If you are financing for more than 2 years and the rebate is a choice of cash back or a low interest rate, be sure to do the math before deciding which offer to take. Don't always assume that the cash rebate is the best way to go.

Rule #5:
Used car buyers should ignore the window sticker or asking price.
You don't need the dealer to tell you what a used vehicle is worth. There is so much information available on the internet that you should know exactly what any vehicle you're trying to buy, sell or trade is really worth. If a dealer is asking more, it simply means he paid too much or is set on making a substantial profit. You can find values at KBB.com, NADAguides.com and Edmunds.com, to name just a few. Most will give values for a number of scenarios; KBB gives a trade, private party and retail price. A fair market value would be something between trade and private party. Auto Trader magazines are a good source of comparables and employ a mix of dealer and private ads. The asking price won't be much help though; you should call and see what a vehicle sold for to get a sense of the real market value. Ask to have any vehicle you're thinking about buying inspected by an independent mechanic; if a dealer has a problem with this, find a new dealer.

Rule #6:
If you're financing, make sure that the interest rates and loan terms you sign up for are the best that you really qualify for. If you have good credit, get yourself pre-approved before you get to the dealership. Check with your bank or credit union as well as online lenders. You can find a list of online lenders in my book and on my website. If you get to the dealership and find lower rates available it's still your option. If you have poor, or no credit, you are at the greatest risk of paying too high an interest rate. You will most likely be offered what is easiest or most profitable for the dealer. While a bank or credit union probably won't be much help (unless you have a very strong co-signer) there are still many options available on the internet. Again you will find a list of online lenders in my book or on my website.

Rule #7:
The Business Office isn't just the place where you sign your paperwork. The real function of the Business or Finance office is to sell you products and financing. The dealer can make significant profits marking up the interest rate, so ask to see the approval from the bank. Products offered will range from warranties, window etch, interior and exterior protectants to Gap, credit and life insurances. Many dealers make more profit in the Finance office than they do selling the cars. Be careful here and don't fall for common tricks such as "menu selling" (products are presented as packages and you are given choices of packages that you can afford), and "payment packing" (the payment you agreed to in your negotiations is more than what it would take to just buy the car, leaving room for the products presented by the Finance manager to seem more affordable). The best way to see the real cost, or payment effects, of any products or packages offered is to have the Finance manager print a contract with NONE of these present and then another contract with the added products. Make sure the vehicle price, interest rate and loan term are the same on each contract. (It's easy to trick someone into believing that a product or package adds very little to the payment by extending the loan term or lowering the interest rate) Remember also, that while banks will finance these products and packages, they are NEVER required to obtain an approval and DO NOT affect the interest rates or terms. If your finance manager implies that purchasing ANYTHING offered will increase your odds of a loan approval or will lower the interest rate, he is committing a crime. If this happens to you, have the finance manager write this out for you and take it to the owner of the store and ask for your name to be added to the sign on the building. Big No No.

There is so much more specific information for you to know before you purchase your next vehicle, much more than I could give you in this short space. I encourage you read my book or visit my website to prepare yourself completely, and save yourself thousands of your hard earned dollars, each and every time you buy a car.

Thinking of Using a Credit Repair Specialist to “Fix” Your Credit? Think again.

Credit repair companies or "specialists" are popping up all over the country in the last few years, so many in fact that Credit Repair Organizations Act (CROA) was passed in 1996 to protect and advise consumers of their rights when using a credit repair specialist. I strongly suggest that you refer to the CROA before entering into any contract with a credit repair company. Some of these specialists may actually provide what would seem to be a valuable service, but in fact don't really do anything that you couldn't do for yourself, for free. Every consumer is allowed to question errors and misinformation that they find in their credit files. Credit repair specialists simply contest these errors on your behalf. There is no magic involved and no special training, skills or tactics are needed.

There is a real danger, however, in using the advice that a lot of these "specialists' dispense. Some of them will actually advise you to commit a crime in order to "clear" your credit. The crime is committed by suggesting a tactic referred to as "file segregation". File segregation is the act of obtaining an Employee Identification Number (EIN) or an Individual Taxpayer Identification Number (ITIN) and using it in place of your actual Social Security number. Sounds like a great way to make a fresh start, but it's ILLEGAL, and the consumer taking and using this bad advice is committing a federal crime and could be subject to fines or prison. It won't help that they didn't know any better.

The most common technique used by credit repair companies entails taking advantage of a right afforded by the Fair Credit Reporting Act. The FCRA states that the credit repair agencies have 30 days from the time they receive notice of a disputed account to either confirm, correct or remove the disputed item. While this is true, there is another clause that allows a creditor that has missed this deadline to simply resubmit the information, without notice. And, because the credit repair specialist tries to bombard the creditors with these dispute letters in hopes of a missed deadline, creditors are allowed to ignore disputes that it considers frivolous. If you really have an error or misreporting account on your credit report, you can take the steps to correct or remove it yourself. You can find a sample dispute letter, along with specific instructions and addresses to all three of the major credit reporting agencies in my book "The Insider's Secrets".

Your Legal Rights

The Fair Credit Reporting Act guarantees your right to dispute inaccurate information in your credit report free of charge, so if any of the problems you've had are due to inaccurate information, you can file a dispute with the nation's major credit bureaus to have it corrected or removed.

If the information is accurate, however, you'll need to focus on building better credit for the future rather than trying to have it removed from your report. Most lenders are primarily interested in your payment patterns for just the past few years, so if you begin now to pay every bill on time it will have a positive impact on your credit relatively quickly.

Only time and establishing a positive credit history can legally "clean up" your credit. One of the best first steps to getting your credit back on track is seeing what is on your credit report. This way, you can take steps to correct any inaccurate information that may be contained on your report and, at the same time, assess your current credit debt. The next step might be to contact old accounts that carry outstanding debt and arrange payment plans. As you begin to manage your debt successfully, you will also want to work on rebuilding your credit.

Many banks offer secured card cards, which are guaranteed by a deposit you make with the card issuer. Your credit limit will be equal to the amount on deposit.

Pay your bills on time! It seems obvious, but paying your bills on time is the best way to build a solid credit history.

Review your credit history. Many credit reports contain inaccuracies, usually caused by innocent errors. The Fair Credit Reporting Act ensures your right to dispute such inaccuracies in your credit report without charge.

You'll find specific help with every one of these remedies in "The Insider's Secrets" our complete and comprehensive guide to buying and financing a car. We have included a number of chapters on credit, credit scoring, and credit issues. We even offer a sample dispute letter and the physical and web addresses of the three credit reporting agencies. You can find our book and more information on every aspect of the car buying and financing process at our website.

“No Credit Application Refused”

We've all seen those advertisements that promise auto financing for everyone. What you don't see is the real truth behind these ads. No auto dealer is ever going to "refuse" a credit application, there's a big difference between accepting and approving a credit application.

It might surprise you to learn that the auto dealer's most profitable customers are usually those with "sub-prime" credit, and they stand a better chance of maximizing that profit if they can control the finance process. The "credit challenged" advertiser specializes in buyers with perceived or real, credit difficulties and auto dealers are experts at making consumers feel credit challenged, even when they're not.

Dealers hate giving up the control they work so hard for and aren't likely to tell you of more favorable, outside (indirect) finance options, and for a number of reasons. The biggest reason being; outside financing eliminates the finance process as a major source of dealer profit.

Dealers who advertise for credit challenged consumers are specifically equipped to take advantage of this niche and will have inventory and sales staff trained to capitalize on that consumer. If a dealer's primary advertising message is directed at those with credit difficulties, expect that dealer to be very adept at taking advantage of that market.

If you have a television set, then you've undoubtedly seen car ads and infomercials directed at the credit challenged consumer. We've all seen auto dealers make this statement:

"We guarantee financing to anyone the law allows"

The only law I'm aware of deals with the age of consent. (You have to be 18 or legally emancipated to finance an auto) These ads promise low down payments, low monthly payments and approvals for all. You see testimonials from happy customers, telling you that they have the worst credit ever (almost always paid actors) and showing off their dream car. You hear stupid statements like, "no credit application refused". Why would anyone "refuse" a credit application? The truth is, they wouldn't and don't.

Lenders DO NOT advertise this way! What you're really seeing, in most cases, is produced and paid for by a local auto dealer or group. The rest are paid for by companies whose only intent is to sell the "lead"
(you and your information) to dealers in your market area. These ads aren't meant to get you approved, they're meant to get you into a dealership. There's very little likelihood that responding to one of these ads will result in anything more than a phone call from a local dealers sales staff.

Once at the dealership, you'll be treated just as if you had never seen the ad and had just walked into the dealership. Most salespeople will tell you whatever you want to hear to get you into the dealership. Lenders won't consider, or approve, unsigned applications and dealers aren't allowed to check your credit without signed consent. Ignore this type of advertising and trust your better judgment. My book, "The Insider's Secrets" will educate and prepare you to buy and finance a vehicle without having to put up with any of these deceptive tactics.

Bankruptcy Doesn’t Have to Be the End of Your Credit Life

After your bankruptcy has finally been discharged the courts and you have your discharge papers in hand, what next? How do you begin to rebuild your credit? The first thing to remember is what led you to your bankruptcy to begin with. You don't certainly don't want to end up in the same financial situation again. The next step is to begin to rebuild your credit, but where do you start?

Credit Report

Order your credit report from the three credit bureaus (TransUnion, Equifax and Experian) to learn exactly what's on your credit report and why. You will need to order a report from each as they don't always contain the same information. The Fair Credit Reporting Act guarantees every consumer the right to one free credit report from each of the three credit reporting agencies, every year. You can order yours at http://www.annualcreditreport.com/ These free reports won't include a credit score however, for those you will have to pay, about $8 for just your score or $16 for a full report with your score. When a person requests his or her credit report, it is listed as a "soft inquiry" and doesn't count against your score.

To begin you have to be educated about your credit rating. Your rating may be low, but don't despair, knowing is much better than being misinformed. If you never monitor your credit report, you'll never know what's there, and believe me; you need to know if there is information that doesn't belong, information that could be bringing down your score. You have the right to have anything that is incorrect reinvestigated and removed. That's the first step, get your credit reports cleaned up so that they reflect accurate information. Once again this is a right afforded by The Fair Credit Reporting Act. You can find specific information on these rights, and instructions on how to take advantage of them, as well as a sample dispute letter in my new book, "The Insider's Secrets". You'll find ordering information, other helpful articles and links on our website, The Insider's Secrets.

Pay Your Bills

Many people might think, "I've got a bankruptcy, my credits ruined and it doesn't matter." This isn't true, it does matter. Rebuilding your credit after bankruptcy is not all that difficult and you may be able to do it faster than you may think. There are lenders out there that specialize in this credit niche. But you must pay your bills, all your bills, on time, all the time. Don't take on any obligations or debt that you cannot repay based on the terms you agreed to. This is the first step to rebuilding your credit.

Applying For Credit

You should never apply for any credit that you don't really need, that's especially true now. Don't go around haphazardly applying for loans or credit just to get a signup prize or too add one more credit card to your wallet. Every inquiry to your credit report, except for those "soft inquiries" we mentioned earlier, will lower your credit score even further. That's the last thing you need right now.

Remember, applying for a loan at one place may generate many inquiries. Many businesses will submit your credit application to many different lenders generating additional and unnecessary inquiries. Each one lowering your score.

Get A Credit Card

What do you mean get a credit card? That's what got me into this mess in the first place. Not true, you got yourself into this mess and not the credit card. It maybe the fact that you misused it, or had an unfortunate situation, but it wasn't the card itself. There are many types of cards and you will qualify for more than a few. What is the best credit card after bankruptcy? At this point it will most likely be a secured card but that's ok.

You need to begin to get some positive information on your credit report. If you want to rebuild your credit after a bankruptcy, get a credit card even if you are required to secure it with savings. Getting this card isn't so you can go on a spending spree. Remember how you got here. Use your new card conservatively and pay of the balance at the end of each billing cycle. If you can't do that don't use it.

Get a Car Loan

You've got to be joking? First a credit card now a car loan? If you want to rebuild your credit you can do it. You have to get as much positive information on your credit report as you can. Get a car loan. You may need to save up a little money to use for a down payment but you will qualify for a car loan with many lenders, right after your discharge. Of course there will be other factors involved, like employment, debt-to-income ratio and your ability to repay your new debt.

Remember the part about paying your bills on time all the time. Start small; get something you are certain you can afford to make the payments on. Do not go to a buy here pay here dealer. They generally don't report to the bureaus. There are dealers that use lenders that specialize in making loans to people with less than perfect credit. Some even offer guaranteed approval. Find one and buy a car you can afford. Be up front with the dealer about your situation, this will make buying a car a lot easier in the long run. Make certain that the lender they use reports to the bureaus.
Don't worry about the rate; it's going to be high. Probably the state usury maximum but your timely payments will reflect positively on your credit report. If you can make extra payments go ahead and do it. You don't have to marry this loan; you just have to date it for awhile. You should be able to refinance after a year's worth of timely payments. Pay your car of early if you can. Then, and only then trade it in and do it again. Follow these steps and you're well on your way to reestablishing yourself.

Summary

Filing Chapter 7 or 13 is not the end of the world, it only seems like it. You can recover but you must be patient. You didn't get here overnight and you can't fix it overnight. If you follow these steps you will be on your way. I've seen consumers with a one or two year old discharge achieve a score of 700 and above. I've also seen people right back in the situation of needing to file bankruptcy again, in the same amount of time. It will take some effort on your part and a little time to rebuild your credit after a bankruptcy, but it can be done, and more easily than you might think. Be careful, be practical and you will find yourself back in the credit game in no time at all.

You can find more help with "understanding your credit and credit scores" in our new book, The Insider's Secrets.

You will find ordering information for The Insider's Secrets and our other products and services, as well as helpful articles and links to many websites at http://www.theinsiderssecrets.net/

Just a Few Credit Card Myths

They might sound sensible, but believing a credit card myth can cost you a lot of money in fees and hurt your credit rating.

Here are some of the most pervasive credit card myths to watch out for:

Writing 'See ID' on the back of your cards will stop a credit card thief.

The Reasoning: The "Ask for ID" or "See ID" prompt reminds salespeople to confirm that the name on the credit card matches that of the person holding it. And why write your signature in that little white space when it could be copied and used on checks, legal forms or other documents? There are even reports of law enforcement personnel recommending this precaution.

The Truth: An unsigned credit card is invalid, technically, according to the agreements that card issuers have with retailers. Moreover, many clerks don't even check for signatures at all, meaning that they're unlikely to see "See ID" on the back of your card, even if it is there.

If you do give a clerk an unsigned card or one with "See ID" written instead, they're supposed to have you sign the back of the card and check the signature against your driver's license or passport. This may trip up the fraudster a bit -- after all, a thief is unlikely to be able to mimic your signature on command -- but that's only if the cashier bothers to take the time to compare that signature to the one on the driver's license.

So what about the liability issue? Does writing "See ID" absolve you if the card is taken and used? No, because no matter what's on the back, you're only liable for up to $50 charged when a card is stolen, and some companies waive that for their cardholders," Writing 'Ask for ID' might encourage a retailer to ask for your ID, but it has no legal bearing.

There's no credit limit on your American Express card, so you can buy anything you want.

The Reasoning: Years of powerful advertising from American Express have probably left at least one of their messages in your mind: "No preset spending limit." So when the Am Ex card arrives in the mail, you can activate it and buy plane tickets to Rio -- or your own Gulfstream jet to take you there, right? After all, there's no limit on your account.

The Truth: Am Ex has changed; it no longer issues only charge cards -- the type that allow you to rack up a lot of debt, as long as you pay off the entire debt every month. They issue credit cards, too, which allow you to carry a balance.

In addition, when you inspect the marketing info from American Express, the phrase "no preset spending limit" usually comes with an asterisk. In the fine print, you'll find wording to the effect that this "... does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record and financial resources known to us."

There is no preset spending limit. It's dynamic. It can change based on your financial situation and how you use the card. In other words, if you don't already make high-dollar purchases with your credit cards, expect Am Ex to question why you're suddenly buying a $3,500 designer suit when you stated on your application that you earned just $30,000 a year. The best thing to do when you're going to make a purchase that's out of the ordinary for you is call and let them know, so you can discuss the details.

You might need one of each of the big cards in your wallet.

The Reasoning: People do wonder if the place they're going will take the card(s) they have. The rivalry between American Express and Visa has perpetuated this for years, as evidenced by TV spots for Visa that showed flashy restaurants and exclusive hotspots "... that don't take American Express."

Some places are picky: Go to a Sam's Club, and you can only use Discover and its own branded card, while rival Costco only accepts American Express.

The Truth: If you have two of the big four, you're not likely to have any problems, and millions of people just get by with one. It's much simpler.

Although their advertising can make you want all these great cards, it's probably not great financial sense to have them all. Remember: All those cards with your name on it don't make you rich and powerful, and in the end, you could become poor because of them.

You can boost your credit score by paying more than you owe.

The Reasoning: Paying more than you owe does temporarily bump up the amount of available credit on your card. It's also true that using a smaller percentage of the credit available in your accounts -- known in the industry as keeping a "low utilization ratio" -- helps your credit score. Lastly, it's thought that early credit scoring models may have given people a boost when they paid a personal or car loan a month early, so some may think that the same thing would apply to their credit card accounts.

The Truth: Even though you may be below zero on an account, it's assumed that's a temporary situation, whether you've got a credit of $100 or $1,000, it still shows as a zero balance for scoring purposes.

Using your debit card wisely can help your credit score.

The Reasoning: Debit and credit cards look alike, both bearing Visa, MasterCard or other logos. They're treated virtually the same by retailers. Thus, both should have an impact on credit scoring.

The Truth: Having a bank account with a debit card and maintaining it properly shows that you're a responsible consumer, but it is not taken into account in credit scoring models.

Retailers can set a minimum amount you can charge on a credit card when you buy something from them.

The Reasoning: In a small store or restaurant, it's not uncommon to find a sign that says, "$5 minimum for credit card purchases." If this wasn't allowed by the credit card companies, surely they'd crack down on it.

The Truth: Retailers who set minimum charges are breaking their agreements with the card companies. Because retailers pay interchange fees -- which vary, but average about 2 percent of the sale -- plus possible transaction fees on each credit card purchase, it's easy to see why a store owner would want to discourage lots of small credit card sales. But when they do so, they risk losing their ability to accept cards. You're allowed to charge any amount on your card, even a penny. The problem is that the retailer wants you to charge enough to make it worth his while.

If you need to use a card for a small transaction that's against store policy, you can object, although you may be invited to take your business elsewhere. The other thing to do is contact the credit card company. They want to know about retailers who do this as it violates their contracts with them."

If you go over your credit limit and pay it back before the due date, you'll be fine.

The Reasoning: Lots of people go over their credit limits. After all, credit card companies don't want to embarrass you and lose you as a customer, so they rarely decline your purchase. As long as you're a good customer and you keep the overage reasonable, they won't hit you with an over-the-limit fee.

The Truth: It's true that credit card companies don't want to decline your purchase when you go over your limit. And if you're buying something that puts you a few dollars or more over the top, there's a good chance they'll give you the green light. But remember, every time you pass that credit limit, even for a short period, you could give the issuer a reason to boost your interest rate to penalty rate levels -- sometimes more than 30 percent.

You've also triggered one of those nasty fees that can eat up your account. Taken over time, those fees can add up and hinder your ability to draw down your debt. It just makes sense for the company. They know you don't want to have the card declined, so they quietly penalize you the $30 or $40 over-limit fee.

To avoid it, try calling before your purchase to see if they can give you at least a little increase in your credit line.

Understanding these common myths will help you protect your credit and possibly save you a ton of money in credit card charges. You can visit our website, http://www.theinsiderssecrets.net/ too find other articles and web links that will give you helpful tips on personal finances, credit, car buying and financing.

Do You remember the Last Time You Decided to Buy Yourself a Car

Once the decision to buy a new car has been made there are a number of other important decisions to be made. Making good decisions will help ensure that you don't make some of the most common car buying mistakes.

With that decision came other decisions, like what car to buy? How much can I afford to spend? How much of a monthly payment can I afford, and should I look for a new car or a used one?

While it's nice to dream about finally getting the car that you've always wanted, you also have to be careful not to get to swept up by your desires and ignore the realities that come with making such an important decision.

There are some significant factors that have to be addressed once you've decided it's time to buy. First of all remember this; in most cases, a vehicle will be one of the most expensive purchases we will ever make. Keeping this simple fact in mind will help make sure that you don't make a mistake in your buying process.

If you're like the rest of us you've made a mistake or two when buying a car. Let's look at the common mistakes that people make when choosing, buying and financing a car.

Ignoring other alternatives: We all have our own preferences. Usually, even before we set out for the dealerships, we have painted a picture in our minds of what our dream car should be. We might even have a particular vehicle in mind already. What's not good about this is that we may be closing the door to other, more appropriate or practical options, like wanting a sports car when a family van is the real need. You must to learn to consider other available choices.

No research or not enough: In our excitement, we sometimes fail to check the advantages and disadvantages of the different vehicles we have chosen to consider. Before heading out to the dealership, you should determine what features are important, what about safety, economy, insurance, etc.?

Basing your decision on monthly payment: Dealers would like for all consumers to make their buying decisions using monthly payment as the primary buying criteria. This is almost assuredly the best way to ensure that you pay way too much for your new car. Always negotiate as a cash buyer. Work out your budget in advance and stick to it. Don't let the dealer be your financial advisor, he doesn't have your best interests in mind. If you can't afford the payment or have to make promises of deferred down payments, don't buy. Remember also that cars depreciate quickly, new cars more so than used, so a three-year loan might be a wiser financial decision than a five-year loan, even though the monthly payments are sure to be higher.

Failing to properly test drive: Always take a thorough test drive before buying any car. Make sure to test the car under the same conditions you experience in your normal, everyday, life. If the salesperson objects, insist or find a different dealer. Take it out on the freeway, check the cruise control, take it up a hill and be sure to test all the features and equipment. I've seen people buy a car without ever testing the power windows, Air conditioning or worse yet, the Moon Roof. If the Moon Roof doesn't work, expect to spend at least $1000 to have it repaired. A thorough test drive allows you to get a feel for the car, and determine if it really is the right car for you. You might also have questions regarding the history and maintenance of the car, some of which may arise during the test drive.

Buying the extras: There are some things you simply can't avoid, like sales tax and state licensing fees. Dealers may try to get you to purchase warranties, credit insurance and other products.

If you buy a new car, dealers may try to talk you into purchasing treatments and accessories, like undercoating, rust proofing and stain-proofing the upholstery. They're not necessary on most cars. In fact, some new car warranties can be inadvertently voided by the application of some of these products. In most instances, you can even do these things yourself, and at much cheaper costs. Learn to distinguish what is needed and what is not when purchasing your car.

Extending the warranty on a new car is only worth considering if you plan on keeping the vehicle beyond the warranty term provided by the factory. If you finance a warranty, you'll be paying interest on it as well. It might be better to wait until the factory warranty has expired, then purchase a used car warranty.

Used car warranties are a good idea given the expense of repairs on modern cars. You should know that these warranties are negotiable, and in many cases provide higher profits for the dealer than the cars themselves.

If you can afford the car of your dreams, then go for it. Getting the best price, financing at the best terms and rates you qualify for, budgeting and setting a limit on how much you can afford to spend on a car are important though. This is especially true in a down economy such as the one we find ourselves in now. There is help with all of these questions and concerns.

You can find a complete and comprehensive guide to every aspect of the car buying and financing process in my new book, "The Insider's Secrets". Our website, http://www.theinsiderssecrets.net/ is a great source for information, with our helpful articles and links pages. You'll find ordering information on all of our time saving, stress relieving and money saving products and services as well. Take advantage of the information, tools, tactics and techniques we provide will save you thousands of your hard earned dollars, precious time and undue stress, each and every time you buy a car.

Keeping these ideas in mind will pay off immeasurably by helping you avoid some of the common car buying mistakes. Good luck in all of your future car purchases.

The Surprising Costs of Automobile Ownership

The actual costs of owning an automobile depend, to some extent, on where you live. Generally, owning a car is more expensive in a city; where you may need to pay for parking and face higher insurance premiums – and less expensive in a suburban or rural area. But you may be surprised to know that the average US household spends almost 20% of its total income on car related expenses. So where does the money go?

Fuel

Obviously, your car needs fuel to operate. And while hybrid cars, which use both gasoline and electric power, are becoming popular, gas could be a major item in your budget, depending on the type of vehicle, how far and how often you plan to drive.

Maintenance

You should also consider maintenance – which generally includes the cost of new tires, oil changes, car washes, engine tune-ups – and repairs. It's wise to budget about $30 (or 0.10% of the median new car price of $25,500) per month in regular maintenance for a new vehicle and about $50 per month for one more than 3 years old. Repair costs, while low on a new car, can easily run into the thousands on older cars.

Insurance Costs

Next, you need insurance. In fact, in most states you can't register your vehicle without proof of insurance coverage. Insurance costs vary dramatically according to your area, age, driving record, number of drivers who will be driving the vehicle, the distances driven and other factors. The amount of your deductible and the type of insurance coverage (bodily injury, property damage, medical payments, comprehensive, collision, emergency roadside service, car rental expenses, etc.) you elect will also impact the cost of your insurance premiums. You can ask a local insurance agent how much you might have to pay to insure the car you're considering. You can also get free insurance estimates on the internet.

Lost Value

One significant, yet often overlooked, cost of auto ownership is depreciation, or loss of value. A new car typically loses about 35% to 40% of its value within the first three years – starting the day you drive it home. After that, most cars' depreciation rates level out to about 7% to 10% per year. While you won't actually pay out of pocket for depreciation, this loss of value is a cost of ownership because what you own is worth much less than you paid for it. For that reason, you may still wish to research vehicle average residual values before you buy a car – often, a little extra cost upfront (both your time and money spent) may save you money in the long run.

Leasing guides can be a good source of residual values, whether you plan to lease or not. Ask your bank or look on the internet, lease guides such as the ALG guide are readily available.

You can find much more information on every aspect of the car buying and financing process in my book, "The Insider's Secrets" and on our website, www.TheInsidersSecrets.net. In addition to ordering information on all of our time saving, stress reducing and money saving products and services, you'll find many helpful articles and links to lenders, appraisers, credit reporting agencies, fuel economy, debt management and more.