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How Arizona Consumers can Guard their Credit Scores against Auto Loan Mistakes

How Arizona Consumers can Guard their Credit Scores against Auto Loan Mistakes

A lot of Arizona consumers have found that car ownership is unavoidable and expensive. It’s easy to finance a vehicle that you think you can afford only to be overwhelmed by your monthly payments. The truth is that too many Arizona car buyers don’t realize how much they’ll be paying in interest charges. They may also forget to set aside money in their budgets for cost of ownership expenses. These include fuel, auto insurance, maintenance work, and repairs. Often, Arizonians who already have bad credit miss a car payment or two. They may even default on their loan, and end up having their vehicle repossessed. This just makes their bad credit worse. Repossession also leaves them with fees that they can’t pay and a lack of transportation. However, with careful planning and realistic expectations, you can finance the car you need without blowing your budget or ruining your credit score. Should Arizonians with Low Credit Scores Finance their Vehicle Purchases? One surefire way to avoid going into debt over a car purchase in Arizona is to buy an inexpensive vehicle outright with cash. This will also allow you to avoid the high interest rates that come with bad credit auto loans. Yet, there are three reasons why buying a cheaper car with cash may not be the best idea. While it won’t hurt your credit score, paying for a vehicle with cash won’t do anything to help it either. You have to use credit in order to build good credit. So, yes, taking out an auto loan means taking on debt, but it will also give you a chance...
Should Arizonians be Worried about Sky High Consumer Debt?

Should Arizonians be Worried about Sky High Consumer Debt?

It looks like the days of credit-shyness have come to an end. Following the Recession, Arizona consumers were timid about taking on new debt. Recently, though, auto loan, student loan, and credit card debt levels have shot up. These levels now to exceed pre-Recession highs. While this may seem like cause for alarm, a lot of economists think that it’s a good sign. It shows that Arizonians and other Americans are feeling more confident about their financial stability. However, there are some warning signs out there that might indicate the need for caution. After all, it’s difficult to predict just how long the economy will remain stable. Therefore, even the most confident Arizona consumers should always have a backup plan just in case something goes wrong. Namely, keeping an eye on your credit reports and building an emergency fund may go a long way toward protecting your credit score in the event of a financial crisis. Why Arizonians should be Aware of how Every Type of Consumer Debt can Lead to Credit Score Problems On the one hand, the fact that Arizona consumers are getting over their credit-shyness is a very good thing. Using credit consistently and responsibly is the only way to build good credit. On the other hand, over-confidence can lead to overwhelming debt and a damaged credit score. Student Debt One type of debt that seems to be almost unavoidable for a lot of Arizonians is student loan debt. College is expensive, but higher education is also a good investment because, ideally, having a degree will lead to landing a good job. Currently, Americans collectively carry...
How Arizona Consumers can stop the Debt Cycle and Start Using Credit Responsibly

How Arizona Consumers can stop the Debt Cycle and Start Using Credit Responsibly

Arizona consumers with unmanageable debt loads should work to bring their balances down. That doesn’t mean they should stop using credit altogether. Responsible credit use is the only way to build and maintain good credit, but you don’t want to spend the rest of your life shackled to debt and paying out the nose on interest charges. Unfortunately, a lot of Arizonians who’ve built hefty amounts of debt have just resigned themselves to their current situations. They don’t see an end to the debt cycle, so they just accept the fact that they’ll be in debt for the rest of their lives. However, it doesn’t have to be this way. With careful budgeting and a willingness to restrain excessive spending, heavily indebted Arizona consumers can pay down high credit card balances, save money on interest charges, and start using credit as a tool to build a better credit score. How Most Arizona Consumers Start the Debt Cycle with Credit Card Abuse In 2017 the Northwestern Mutual Planning and Progress Study revealed that the average American carries about $37,000 in debt. This includes mortgages, student loans, personal loans, auto loans, and credit card debt. According to the same study, about half of those who are indebted in the U.S. regularly devote about half of their income to debt repayment. Of course, there’s little that you can do about having a house or car payment. You need a place to live, and most Arizona residents need access to a vehicle. At best, you may be able to refinance your current mortgage or loan in order to get a better interest rate....
Are Retailers Like Curacao Helpful or Harmful to Arizona Consumer Credit Scores?

Are Retailers Like Curacao Helpful or Harmful to Arizona Consumer Credit Scores?

If you live in the Phoenix, Arizona area, you’re probably familiar with a retail chain called Curacao. This company offers furniture, household appliances, computers, jewelry, and a host of other items. If you’re new to Curacao, the first thing you’ll notice is that the retailer strongly encourages their customers to sign up for its branded credit card. A quick glance through the company’s website makes it clear that most of the Arizona consumers who shop with Curacao do so with credit. It’s also obvious this retail chain largely caters to the Hispanic community. On the Curacao website, most items that are over $50 have a “per month” price listed below the buying price. Shoppers can purchase big ticket items by making small monthly payments over time. Retailers like Curacao give Arizona consumers the opportunity to buy products that they are not able to afford outright. However, the stores also enable customers to build debt, default on payments, and eventually ruin their credit scores. Are the potential opportunities worth the risks? How Arizona Consumers Can Benefit from Using a Curacao Credit Card to Pay for Big Ticket Items over Time First, skeptical Arizonians realize that, if managed properly, credit cards can be used to build good credit scores. The Curacao credit card is fairly easy to obtain (even for consumers with less than perfect credit). Yet, those with bad credit who still qualify for Curacao credit may get a 35% APR. Credit cards issued to applicants with good credit come with a 20% interest rate. Higher credit card interest rates aren’t a problem if you pay off balances in full...
The Top 5 Ways for Arizona Consumers to Kill their Credit Scores

The Top 5 Ways for Arizona Consumers to Kill their Credit Scores

It seems unlikely that any Arizona resident would willingly do anything to kill their credit score. However, you may be unknowingly wrecking your credit score by making one or more of these common mistakes. Having a low credit score in Arizona can make it harder to get good interest rates on loans, prevent you from renting an apartment, and cause you to pay more for car insurance. Luckily, even bad credit can be fixed. In order to get on the right track, though, it’s important to correct the habits that are preventing you from earning a good credit score. The Five Mistakes that Arizonians with Bad Credit Scores Might be Making If you’re like a lot of Arizona consumers, you have a lot to keep track of on a daily basis. Juggling work, school, family, and finances can be tricky business, so it’s understandable if your credit score isn’t always at the top of your priority list. Yet, it’s important to be aware of any actions that might be harming your credit score in order to revise your habits and repair you credit. 1 – Paying Bills Late You’re bad with due dates and don’t think anything of it if your payments are a little tardy. At least you’re paying, right? Wrong. Meeting your financial responsibilities is crucial, but lenders will only view you as truly responsible if you’re meeting them on time. Not only can late payments hurt your credit score, but paying bills late can also be expensive. Often, late fees are imposed, and these fines can quickly add up and wreck your budget. 2 – Using...
Arizona Consumers should know that NOW is the Time to Pay off High Credit Card Debt

Arizona Consumers should know that NOW is the Time to Pay off High Credit Card Debt

Here’s some bad news for Arizona consumers who carry high credit card balances: Your credit card debt is about to get more expensive. In Arizona and every other state, credit card interest rates are based on consumer credit scores and the prime interest rate which is set by the Federal Reserve. The prime interest rate has recently been bumped up by a quarter percentage point. This may not seem like much of an increase, but a lot of Arizonians will see a significant change on their monthly credit card statements. Also, another quarter point rate hike is expected before the end of 2017. This means that, if possible, you should be paying down high credit card balances. It’s also a good time to improve your credit score in order to qualify for a credit card with a lower interest rate. The Impact of Federal Reserve Interest Rate Hikes on Arizona Credit Card Debt According to USA Today, average credit card interest rates are around 15.07% (with assigned rates for subprime consumers being substantially higher). If an Arizona consumer carries a balance of $5,000 on a card with a 15.7% APR, a quarter point prime rate hike will add about $175 in interest charges for the year. By the time 2019 rolls around, all of the planned prime rate hikes could take an additional $525 annually onto this Arizonians credit card debt. ValuePenguin.com has published statistics showing that the average amount of credit card debt per household in Arizona was $5,673 in 2016. This means that a lot of consumers in the Grand Canyon State are likely to feel the...

Rebuilding Your Credit After Bankruptcy

After you have filed for bankruptcy in Arizona, you are probably wondering how on earth you’re going to get your credit back to normal. It can take years to cultivate good credit to allow you to make major purchases like a home and cars, and other things that require financing and credit checks. Bankruptcy can affect your credit, but it won’t damage it beyond repair. Luckily, we have a few helpful tips to get you on the right track to repairing your damaged credit after you’ve filed for bankruptcy. Lighter Debt The first step you should take in rebuilding your credit is to accrue a lighter debt load. This will show lenders that you have enough income to repay your current debts and make sure you have enough money left over as disposable income. It also gives them confidence that you won’t have to file for bankruptcy again. Creating a budget and sticking to it to help keep your finances in check can give you the stability and discipline you need to avoid another bankruptcy in the future. Build an Emergency Fund Life can’t always be cut and dry. There will always be unexpected expenses and emergencies that could put your finances back in the gutter. Having an emergency fund can keep you from turning to less than ideal methods of repayment such as payday loans, which can ultimately make you pay far more than you naturally would. Even if you start off with as little as $100, it can help you start to build your emergency fund so it becomes more substantial in the long run. Check Your...

Choosing the Best Credit Counselor in 6 Simple Steps

Are you currently head over heels in debts? Well, with the help of a reputable credit counselor, you can finally breathe a sigh of relief. A good credit lawyer will help you get out of bad credits without breaking a sweat. However, with the financial market being flooded with credit counseling service providers, finding a trustworthy and honest counselor can really pose a challenge to you. So, when finding the right credit counselor, taking extra precautions will not be an option. However, the following 6 tips will lead you to a great professional: 1. Is your prospective counselor a member of a national credit counseling organization? A good counselor should at least be a member of one of the national credit counseling agencies, such as the National Federation for Credit Counseling. This membership means a lot, as you will be guaranteed that you are dealing with a competent counselor. So, if the name of your prospective counselor doesn’t appear in the national credit counseling directory, then there are a lot of questions regarding their qualifications. 2. Ask them if they charge additional fees A counselor might not be honest with you regarding the actual amount they charge, so look for ways to find out if they have extra charges besides the actual cost of the counseling service. You want to deal with an expeditious counselor and therefore, all the payments you make to the credit counselor as part of your debt management plan should reach your creditors at the right time. Also, every penny you give your counselor should pay down your debts and not to be used in...
Popular Myths Regarding Your Credit Score

Popular Myths Regarding Your Credit Score

There seems to be a lot of confusion surrounding what affects a credit score and what doesn’t. Many times, people unknowingly do things that affect their credit score. At other times, people think certain things affect their score when they don’t. Here are a few common misconceptions when it comes to what affects credit scores. Debt-to-Credit Ratio They commonly think this since they won’t be applying for new credit; however, there are other reasons to regularly check a credit score. Insurance companies, potential employers and potential landlords look into credit scores. Leaving things to the last minute can impact where a person lives and other factors, such as having to pay higher interest rates. Loans People tend to think that if they have bad credit that they’ll never be able to obtain a loan. People with bad credit can obtain loans, but they carry higher interest rates, may require that people place up collateral or provide a higher down payment on something. A poor Arizona credit score reflects the likelihood that a person won’t pay off their debt, which is why higher interest rates and such is affected. A credit score can take years to increase. Take time to check it regularly, and research ways to do so. Don’t blindly believe common credit scores myths. At Arizona Credit Lawyers we are always available to help. Contact us today to learn more. Published By: Arizona Credit Lawyers – Gary Nitzkin 3260 N. Hayden Road, Suite 210 Scottsdale, AZ 85251 Phone: 480-771-6001 / 480-771-6001 Email: info@azcreditlawyers.com Website:...
Five Most Important Things That Affect Your Credit Score

Five Most Important Things That Affect Your Credit Score

The more often you apply for credit and are denied, the lower your credit score will be. Every time you attempt to open a new credit account it negatively impacts your credit score. When you apply for credit very frequently it makes you look like you are struggling financially and it will result in you having a very low credit score. One thing you should do when you’re trying to improve your credit score is to resist the urge to apply for every credit card Arizona stores offer to you. The Types of Credit You Use The credit reporting companies like to see people have several types of credit. It will improve your credit score if credit cards (revolving credit), mortgage loans (long term, and closed end (car loans). Although the types of credit you have do impact your credit, it only plays a small role in determining your credit score. Arizona Credit Lawyers can assist you in making sense of your credit report and help you get back on track. Contact us today to learn more about our services. Published By: Arizona Credit Lawyers – Gary Nitzkin 3260 N. Hayden Road, Suite 210 Scottsdale, AZ 85251 Phone: 480-771-6001 / 480-771-6001 Email: info@azcreditlawyers.com Website:...