Home >> Carloan.com Blog

Carloan.com Blog

Blog, Article News, Tips and Advice about the Car Loan Industry.

How public Wi-Fi can damage your credit score

How public Wi-Fi can damage your credit scoreGetting rid of Internet service is one way that those struggling with making used car loan payments or settling credit card bills can save money, but using a free Wi-Fi connection may not be worth the risk.

Heading to a library or local cafe for the complimentary connectivity may be convenient, but when you are dealing with secure information, such as passwords, finances and other personal data, it can do more damage than you think. Using a public connection carries a higher risk of being hacked, according to MSN, which can lead to identity theft and a poor credit score.

"Whatever you send over the Wi-Fi, whether you are at a restaurant or a grocery shop, the only thing that is secured or encrypted is your log-in," Rami Khasawneh of Management Information Systems in Illinois told the news source,

If you must get rid of your personal wireless account, make sure that the website holding your secure information is encrypted, which is signified by a small padlock icon by the URL.…

Avoid charging your taxes this year

Avoid charging your taxes this yearWhen paying your taxes this year, it may be an enticing option to let your credit card foot the bill. However, this is not a responsible use of credit, unless you are absolutely unable to fund the payment from another account.

Incurring large fees on your credit card will not only boost the amount of money consumers will pay in interest, but specifically with taxes, there will be an extra charge of 2 percent of the entire tax amount one owes, according to The Associated Press.

It is a transaction similar to shopping at the mall. When you pay for a purchase with your card, the store is charged a small percentage for allowing you to swipe your card.…

Handling student debt during financial hardship

Handling student debt during financial hardshipThe cost of college has risen to astronomical heights, saddling graduates with thousands of dollars in student loans long after they receive their diploma. If you are up to your ears in student debt and struggling to make monthly payments, there are solutions to your financial problems that will prevent you from damaging your credit score.

First, consider a loan deferment, which temporarily relieves your repayment responsibilities. Also, if it is a subsidized loan, interest will not accrue during this period. Lenders allow this reprieve when the borrower is going through financial hardship, but it is not forever, and although it appears on your credit report, a deferred loan looks far better to creditors than a delinquent account.…

Make your credit card work for you with responsible use

Make your credit card work for you with responsible useSome people with bad credit may want to cut up their credit cards and eliminate all spending temptations, but the truth is, plastic can be good for your FICO score if used properly. According to a report by TransUnion, one of the three major credit bureaus, more than 8 million people chose to go the former route last year, and here is why it could damage your financial ranking.

Having a major credit card in your name is a good sign to lenders, but the trick is not to carry a balance. While it's not always possible to pay the bill in full every month, using 30 percent or less of your limit shows that you can handle your finances responsibly.…

Major debt may call for lifestyle changes

Major debt may call for lifestyle changesSure, there are small ways to save a little extra money to repay your loans, like bringing lunch to work or skipping your next hair appointment, but sometimes consumers need a bigger change in order to make ends meet. There are a number of things you can do to save your hard-earned dollars and put them towards bills in order to save your credit score from dropping.

If you live alone, it may be time to learn how to share again and get a roommate. Rent is a major portion of people's monthly expenditures, and wouldn't it be nice to have a little help?…

Checking your credit score: Read the fine print

Checking your credit score: Read the fine printConsumers must realize that it is important to know where they stand financially, as being unaware could have a serious impact on their ability to secure a used car loan, good interest rates, mortgages and more. While everyone is entitled to one free annual credit report from each of the three major bureaus, finding out your FICO score is not complimentary.

Checking your credit score can cost up to $20 per institution. However, the bureaus often promote discounted score retrieval – but consumers should make sure to look at the fine print.

For example, Experian is offering a deal that allows individuals to see their credit score for only $1, which involves an automatic trial membership with its credit monitoring program.…

How FICO 08 compares to the original scoring model

How FICO 08 compares to the original scoring modelThe Fair Isaac Corporation, which developed the FICO score that is the most widely used way to determine one's credit ranking, revealed a new model that can more accurately calculate one's financial standing a couple years ago, and it is important to understand what has changed.

The FICO score is the most popularly used figure to determine interest rates on car loans, credit limits and more, and the newer model, FICO 08, promises to be a better representation of a consumer's credit risk and help lower consumer default rates. While it takes the same figures into consideration – payment activity, credit history, credit utilization ratio, mix of credit accounts and new credit requests – there are a few changes to more precisely reflect a consumer's score.…

Build in emergency fund to avoid piling up debt

Build in emergency fund to avoid piling up debtOften times, consumers who are troubled by debt do not get there by overspending. It can be the result of a medical emergency or any other situation where one needs funds fast, and those unforeseen events can lead to a bad credit score if you are unable to make the credit card payments every month. This ultimately affects your chances of securing a good car loan or other line of credit.

Although it is easier said than done, one can avoid piling up the debt by creating an emergency fund. Saving can be quite difficult in the current economy, however, there are ways to find a little more money in your bank accounts.…

Small ways to save money and pay off your debt

Small ways to save money and pay off your debtSaving money is tough these days, especially for those who are living paycheck to paycheck. But the truth is, there are ways you can cut back without drastically changing your lifestyle, allowing you to save more money to pay off debt so that you better qualify for car loans, mortgages and other lines of credit.

Those who get their hair cut once every six weeks should wait a couple extra weeks for their next appointment, meaning you pay for less appointments throughout the year. Consumers can do this with manicures as well – indulge in the treatment and then change nail polish on your own for a few weeks.…

Military members allowed free access to FICO scores

Military members allowed free access to FICO scoresIn an effort to boost financial literacy among the military, members will be allowed free access to their credit scores, the FINRA Investor Education Foundation revealed this week.

Active duty service members and their partners now have the opportunity to learn more about their FICO score, which consumers typically pay up to $20 to access.

Not only will they be able to assess their current financial standing, but a FICO Score Simulator helps users understand the effects that certain financial decisions will have on their credit ranking. For example, consumers actively involved in the military will be able to see how their score would fluctuate whether they paid a used car loan in full or opened a new credit account.…

Check Your Credit Scores

You will need your updated Credit Scores when applying for a car loan.

  • See what lenders see when evaluating your application
  • Get the lowest interest Rate when buying your car
  • Get unlimited access to your 3 Free Credit Scores
Check Your Free Scores Now!