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Your Payment History and the Impact on Your Credit Score



One of the best things you can do to improve your credit score is to pay your bills on time. But there are actually many other aspects to your credit score, and we’re here to help guide you in repairing your credit history.

What’s in a Credit Score?

When you look up your credit score, that three-digit number may vary depending on where you look and who you ask. This is because there are a few different credit scoring models out there, but the one most commonly used by auto lenders is the FICO scoring model.

It’s one of the oldest and most used, and it has five main categories that combine to make up your credit score:

  • Payment history: 35%
  • Amounts owed: 30%
  • Length of credit history: 15%
  • Credit mix: 10%
  • New credit: 10%

As you can see, payment history is the most important aspect of your credit score. Car lenders, and most other types of lenders, use your credit score as a way to gauge your ability to repay credit. You can think of your credit score as a quick snapshot of your credit history, so it’s very important and vital to your borrowing power.

What’s in a Payment History?

Your Payment History and the Impact on Your Credit ScoreSeeing as payment history carries the most weight in determining your credit score, it should be the main focus when you’re looking to repair your credit in order to get an auto loan.

While the most influential thing you can do to improve your credit is keep up on all your bills and forms of credit, there are lots of other things that go into the category of payment history:

  • Payment information on all your accounts (credit cards, car loans, etc.)
  • How/if your payments are late (example: 30, 60, or 90 days)
  • Amount owed on delinquent accounts and amounts in collections
  • The number of past due bills or accounts
  • Public records, such as bankruptcies
  • The time that past due accounts were noted as “delinquent”
  • Amount of accounts that were completed, or paid as agreed

Your payment history makes up 35% of your credit score, and as you can see, it has taken into account many different aspects of your creditworthiness. It’s no wonder that lenders take your credit score seriously when you apply for credit! Just your payment history takes into account so much of your financial and stability, which in turn, gives lenders an idea of how you may handle future credit.

How Do I Improve My Payment History?

While paying your bills on time should always be a priority, you should also work to resolve accounts that are past due, and work with your creditors. The older a delinquent account, the less it impacts your credit history. So, although you may have a few missed payments, if you don’t add any more to your history, those older ones eventually fall off your reports.

Additionally, most negative marks are removed from your credit reports after seven years – including Chapter 13 bankruptcy, an auto repossession, and missed payments.

Rather than waiting for old debt to fall off your credit reports, you can take steps to do something about it. There are companies you can hire to help with correcting and cleaning up your credit reports, called credit repair companies. If you’re overwhelmed with your credit reports and don’t know where to start, one of these companies could be helpful for you.

Credit repair companies typically charge a monthly fee, and sometimes a start-up fee, and they dispute inaccurate accounts for you that are lowering your credit score. They contact creditors and collection agencies on your behalf to work through your debts, or remove errors (with your help) that may be present on your credit reports.

However, if the biggest downfall on your credit reports is missed or late payments, the best thing you can do for your reports is to resolve the delinquent accounts, and maintain a good payment history from now on.

Right now is also a great time to watch your credit score rise as you work to rebuild it, as you can request all three of your credit reports (from TransUnion, Experian, and Equifax) for free once a week until April 2021. You can request your reports here.

Rebuilding Your Credit With an Auto Loan

With payment history being the biggest player in your credit score, installment loans are a great way to improve your payment history. Car loans are usually a few years long, and if maintained, can stand to really give your credit a boost in points.

If you’re a bad credit borrower and you’ve been looking for a lender to work with your credit, you’ve come to the right place. Here at Auto Credit Express, we connect borrowers of all credit types to dealerships with bad credit auto loan options, and we do it for free. To get started, simply complete our no-obligation car loan request form.

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Warner Robins GA Credit Repair Finance Score Improvement Service Launched



New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

New credit repair services have been launched by the expert team at Fresh Start Consumer Services. They work with clients in Warner Robins, GA and the surrounding areas.

Fresh Start Consumer Services has launched a new credit repair service for clients looking to improve their financial future. Interested parties can sign up for credit consultations, in-depth credit analysis, credit recommendations and more.

Full details can be found at:

The newly launched services are designed to ensure clients can repair bad financial credit history, track their improvement campaign in measurable ways, and secure a better future for themselves and their family.

Clients can work with Fresh Start Consumer Services to clean up their past. This is achieved by working with the major credit bureaus and creditors to challenge the negative report items that affect the credit score.

Based in Warner Robins, GA, the expert team at Fresh Start Consumer Services is passionate about helping citizens to improve their credit score to give them more buying power. As a result of this, clients are able to secure more options in life.

The team understands that sometimes bad things happen to good people, and their services are designed to ensure that clients can get the most out of life. They also realize that a bad credit score can harm clients’ quality of life – and can be a difficult situation to get out of.

Fresh Start Consumer Services offer courses in credit repair and restoration, budget management, credit education and purchase assistance. Clients get easy access to their account 24/7 for live status updates on improvements, allowing them to fine-tune the management of their credit score.

Service options include personalized dispute options to fit each clients’ exact credit repair needs, an experienced case analyst and case advisor working personally with them throughout the process, custom dispute letters, and more.

For clients, there are a number of reasons to work with a credit repair specialist. Clients are able to secure significant savings on interest rates, attain better terms on loan products, and get access to the best credit card deals. They also gain access to more housing options.

The team states: “Fresh Start Consumer Services offers a unique combination of services that gives our clients the quality of life they deserve. We specialize in helping our clients achieve qualifying credit and the financial health they desire.”

Full details can be found on the URL above.

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Is it Possible to Trade In a Car Early?



Yes, early trade-ins are possible when you finance a vehicle. In fact, there’s no set time frame on trading in a car. Most dealers won’t take a trade-in that’s too fresh, though, and it’s best to wait until there’s equity in your vehicle before you try to trade it in.

What’s a Trade-In?

When you trade in a car, you’re essentially selling it to a dealership and financing something else from their lot, without the hassle of selling and buying with separate transactions. There are no hard-and-fast rules about how and where you have to trade in your vehicle.

However, it’s beneficial to shop around and see which dealers can give you the best price, but you shouldn’t just head to a car lot and ask what they’re willing to offer you. When the time comes, there are several steps you may want to take to get ready for the trade-in process, especially if you’re looking to trade in early before you’ve had the chance to close the equity gap.

Trading In Early and Equity

Are Early Trade-Ins Possible When You Finance a Car?When you’re trading in a vehicle soon after you’ve financed it, you’re more likely to be in a negative equity position – owing more on your auto loan than the car is worth.

This is especially true if you financed a new vehicle, or a certified pre-owned car. Newer vehicles depreciate faster than used ones, which have typically already seen their biggest drop in value.

Depreciation is the loss of value over time and it can’t be stopped. It can be slowed, though. The best way to do this is by using a large down payment when you finance. This reduces the amount you have to borrow, and leaves you owing a price closer to what the car might cost after you drive it off the lot. New vehicles typically lose around 10% of their value as soon as they touch the road.

If you don’t have the equity to recoup your investment in a car, you have to make up that difference out of your own pocket. It’s much easier to trade in a vehicle that can pay for itself, but this isn’t always possible when you’re trying to do so early.

Preparing Your Early Trade-In

When you know that you’re starting with a deficit on your trade-in, it’s a good idea to be prepared to get the most you can. Clean the car thoroughly, both inside and out, and make sure to fix any minor damage that may have occurred in the short time since you took out your loan.

Getting the vehicle detailed and fixing major mechanical issues isn’t likely to result in a worthwhile increase to the cash in your pocket, so don’t go overboard. Remember, you want to make as much money on this trade as you can, and it’s probably cheaper for the dealership to fix any large issues.

Before you set foot in a dealer to get your trade-in appraised, it’s a good idea to know approximately how much your car is worth. You can find this out by going to online valuation sites such as Kelley Blue Book or NADAguides. Be sure to be honest when you’re inputting information, since it’s the only way to get an accurate estimate of possible value.

Shopping for Trade-In Values

Once you have the estimates (which you should print or save to your phone), it’s time to take your trade-in to get looked at. Taking it to a few different dealerships is a good way to find the best deal you can.

We recommend taking your early trade-in to at least three different dealers, making sure at least one of them is a franchised dealership that sells your vehicle’s brand. A franchised dealer that sells your car’s brand may be more likely to offer a higher price.

Depending on your credit situation, it’s likely a good idea to ensure you’re trying to trade in your vehicle to a dealership that can work with your situation, especially if you have poor credit. And that’s where Auto Credit Express can come in handy.

We have a nationwide network of special finance dealers that are signed up with subprime lenders who can help people in many different types of credit situations, including bad credit, no credit, and even bankruptcy.

The process is easy to get started – just fill out our free auto loan request form. We’ll match you to a local dealership that can get you started on the financing you need after your early trade-in.

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Jackson receives financial reporting award



JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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