The Quickest Way to Build Credit Scores with Tradelines

There exist many ways to build and improve your credit score, but most of them take time and patience to come into effect. However, there is a quicker and easier way to this – making use of another person’s tradelines to build or better your credit score. You can do this by two means.

Becoming an authorized user

Often, you have a friend, a family member, or a significant other who has a long history of positive credit scores and paying bills on time. By being added as an authorized user to such a person’s credit card, their tradeline gets shared with yours and impacts your credit score in a positive manner. You don’t need to possess or use this person’s credit card to reap the rewards of being an authorized user. All you need to do is ensure that the primary cardholder, i.e. your friend or family member, reports the activity of all authorized users to the credit bureaus. Else, it can be a waste of time as non-reporting won’t help with credit building at all. It is advisable to come to an agreement with the primary cardholder before the exercise, especially if the person expects you to pay your share to him/her for giving you such access to their credit history.

Buying third-party tradelines

Not all people are fortunate enough to have friends or family with positive credit history, and even if you do, these members may not be willing to give you authorized access for a variety of reasons. In such a situation, the quickest way to build credit scores is by buying tradelines from a reputed and legitimate company. The tradeline purchase is made by a third-party agency or company who specializes in the same.

Professional companies buy tradelines from people who have a long history of positive credit card or loan payments and offer them to you at a fee. The advantage of this method is that you can choose one or more tradelines that help offset the not-so-great information on your credit report. You can also make a choice based on your goals – whether it is to obtain a higher limit on your existing credit or to secure a large sum of loan for a new house or car. The effect is typically visible in anywhere between 45 to 90 days.

However, when opting for this method, be wary of the company that you choose to work with. There is an exchange of sensitive information, including identity proofs with the third party and tradelines sales company. So, be absolutely sure that you avail the services of a legitimate organization lest your identity gets stolen or misused.

Also, remember that buying tradelines as the quickest way to build credit only works for a short term. You are usually removed as the authorized user once your goal has been achieved. Post obtaining a new credit card or loan, you need to continue making payments on a timely basis lest your credit score topples again, sending those hundreds or thousands of dollars you spent buying third-party tradelines down the drain in no time.

How to Give Your Finances a Fall Cleaning

We all hear about the ritual of Spring Cleaning – but what about “Fall Cleaning?” For many, fall is a natural new beginning, signaling the start of the final quarter of the year, the descent into the holiday season, and a ramp-up to a fresh new start when January 1 rolls around. In many ways, there is no better time to conduct a thorough financial refresh, take stock of your debt relief goals, and to restructure your family budget to optimize your financial success.

If you’re looking to organize your finances this Fall, here is a simple checklist for you to consider.

Take Your Financial Pulse
Comb your important files, check all of your bank accounts, pull your credit reports, and revamp your family budget to make sure that you have a grasp on your income streams, debt balances, debt relief payment plan schedules, assets, and liabilities. Before plunging into a new year, it’s important to know where you stand, where your finances look healthy, and where you have room to improve.

Once you’ve taken your financial pulse, the critical next step is to commit to change. If you consistently overspend in a particular area, resolve to significantly cut back in the next three months. If your emergency fund is looking a bit thin, devote a larger portion of your monthly paycheck to funding it – even if it’s just a few extra dollars. Finally, if your budget needs a refresh based on your most current income and expenses, update it, and make sure everyone in your family or household is aware of the changes.

Contribute to Your Retirement Accounts
In the last quarter of the year, do your best to max out your retirement contributions. You may have to play around with your amounts each month, especially if you’re currently in a debt relief program or attempting to settle a debt. Also, the amount you contribute may depend on whether your employer matches your contributions. Consider meeting with a financial planner to ensure you’re sufficiently padding your accounts before the end of the year.

Check Your Insurance Options
Check your options for open enrollment in a solid health, life, and disability insurance plan. Spend some time analyzing your healthcare spending and see if enrolling in a new plan would help you save more. Also, you can consider opening a Health Savings Account or Flexible Spending Account to contribute a set amount of healthcare funds before the start of the year.

Focus on Debt Relief
If you’re working through a debt relief plan, like credit card consolidation or debt settlement, consider using this final quarter to make substantial progress toward decreasing your balance. Rather than apportioning a substantial amount of your budget for holiday gifts, use that money instead to pay down your debt. Consider picking up a side job or extra shift or devote a larger percentage of your monthly income to debt relief, if possible.

Although it may seem early, by taking these simple steps now, you can slowly and intentionally work toward a financially healthy New Year.

How to Get an Auto Loan When No One is ready to co-sign for you?

Auto loan approval speeds up when you have a co-signer. You might have suffered from bad credit and the best solution would be to get a cosigner on board. Ideally, a co-signer is someone who agrees to repay the auto loan amount in case the borrower fails to make regular payments. Co-signing is a generous act of helping a family member or a friend in need. But more often than not, the risks involved with co-signing an auto loan are massive. Due to the numerous financial risks, you may be left in a situation with no co-signer.

What are the Risks of Co-Signing an Auto Loan?

1. Directly Liable to Make Payments

In the worst-case scenario, if you are unable to make payments, the co-signer will become directly liable to pay them. The lender has the right to sue the co-signer, who has agreed to repay the loan in the past. Although the co-signer has not taken an auto loan, he has helped the borrower attain auto loan approval. Therefore, he can be held responsible for making payments in case the borrower avoids making them.

2. Debt to Income Ratio Disruption

When a co-signer comes on board, his total debt increases as compared to the gross monthly income. The person co-signing for you would always think about his/her future financial requirements. If he co-signs for an auto loan, he might be denied for a loan in the future because there is already a lot of debt under his name. When someone co-signs for you, it can disrupt their future financial planning. And so, they avoid co-signing for a loan.

3. Co-signing Makes Relationships Bleak

A co-signer will be ready to risk their credit score only if they are a close friend or a family member. In most cases, when you miss out on payments, it becomes your co-signer’s duty to bring you into the lawsuit. Most likely, your friend or relative may even have to sue you and that can strain your friendships or family ties.

If Co-Signing is a Bad Idea, then how do you obtain an Auto Loan?

If you are unable to find a co-signer, do not worry. There is hope. Get back to the drawing board and change your game plan. Focus on the following things for easy approval:

1. Increase the Amount of Down Payment

When you apply for an auto loan, make sure you are making a big down payment that reduces the amount of the car loan. Ideally, 20% or more of a down payment is a good amount to pay upfront for auto loans without a co-signer.

2. Work on Building Stellar Credit

You require a co-signer in the first place because of a bad credit history. Work on increasing your credit score by paying off past debt, clearing credit card balances and paying your auto loan on time.

3. Apply for No Co-Signer Auto Loans

Last but not least, consider applying for no co-signer auto loans. There are many online auto financing companies that offer auto loan approval without the need to co-sign. Interest rates may be a tad higher but they will compensate for the time and effort take to convince someone to help you out. You can always negotiate interest rates with the lender and seek a better deal by manifesting your current monthly income.

Auto loans without a co-signer are still a possibility. All you need to do is change your game plan, take the right steps and you can buy a car easily.