Tell my audience about yourself. What made you want to start your website beatingbroke.com?

I discovered blogging in late 2005, and started a tech/personal blog. About the same time, my wife and I found ourselves in some pretty dire financial situations, and I read Total Money Makeover by Dave Ramsey. As I learned more and more about personal finance, and started reading a few personal finance blogs, I started my own. After writing that blog for a year or so, I hit a major block and ended up selling it. About a year after that, I got the itch to write about personal finance again, and Beating Broke was born. The objective for the first site, and Beating Broke has always been to share the information and thought processes behind personal finance.

Please name some quick and easy ways for a person to improve their credit even if they’ve recently been through a divorce or some type of financial calamity?

Learn more. That might sound a little silly, but it’s the best advice I can give someone. Knowing how credit works, and the different ways that you can improve it is the best way of being able to look at your finances, see the mistakes you’ve made and make improvements. Some financial events remain on your credit report for some time. Bankruptcy, for instance can remain on your credit report for 7 years. For something like divorce, the best advice I can give is to get your name off of anything that your ex and you were joint on, and then begin establishing your own credit by opening new accounts (that are necessary) in your own name. I’ve written a Credit Score Guide that’s available on Beating Broke here: Beating Broke Guide to Your Credit Score

When a person walks into a car dealership what are some credit questions you recommend that consumer ask the salesman or finance manager?

You should have your credit all figured out before you walk into the dealership. Go to your financial institution ahead of time and have them pre-approve you for an auto loan so that you know how much you can spend, and what the rate and payment will be. If you’ve got that wrapped up, you can walk into a dealership and ask them what the discount is for cash. You can also ask them what rate and payment you can get through their financing, as they sometimes have national lending accounts that can offer deeper discounts than your local institutions.

How long does the credit restoration process take?

It depends on what you’re restoring from. A bankruptcy will take at least 7 years to fully recover from. Just having delinquent accounts, or missed payments can be quicker. The recovery begins almost immediately when you start taking steps to improve your credit. In all cases, being responsible with your credit gets it going in the right direction. Make your payments on time, control your spending so you don’t stretch beyond your limits, and begin saving for the future.

If a person can’t purchase a vehicle in cash, what’s the ideal down payment you recommend they have? Does a larger down payment mean a shorter loan and APR?

By default, most lenders will give the borrower the longest term available for a car loan. The auto will depreciate by 10-20% as soon as you drive it off the lot, so it’s always a good idea to come up with as much down payment as possible. 10% as a minimum. If you have more to put down, it can open up some negotiation avenues with your lender. You can shorten the loan, and possibly drop the APR some, but, for the most part, the APR will be dependent on your credit score. Going to your institution and getting pre-approved for the car loan can help you negotiate with the dealer, as well as let you know what the payment and terms will be so that you can make sure that they fit into your budget.

In your a first time car buyer and you’ve never shopped for insurance before, what are some tips to get the lowest payment possible? What are some questions you should ask your insurance agent?

There is nothing more important, when it comes to car insurance, than shopping around. You’ll likely have some local agencies that have the ability to give you quotes for several insurance companies, and there are several places online where you can price shop too. If you’re going to have a loan on the car, make sure you know what the lender is going to require for insurance. Any lender is going to require full coverage (Comprehensive and Collision), but some will require a certain level of both and may require certain deductibles. Make sure that you ask your agent if there are ways that you can reduce your insurance costs. They may have discounts for bundling other insurances together, safe driving discounts, and discounts for paying for a certain amount of time in advance.

Besides beatingbroke.com what are some of websites/blogs you would recommend our visitors visit while trying to improve their credit?

I think any website that provides good information on personal finance will help you improve your credit. As you learn to handle your personal finances, your credit score will naturally improve along with your finances. A couple that I would recommend, though, are Consumerism Commentary, Narrow Bridge, PT Money, Sustainable Life Blog, Get Rich Slowly, and Wisebread.

Please visit Beating Broke
Facebook
Twitter
Google+

This is our twentieth interview in our “1000 Interview Challenge” If your interested in an interview, please contact me.

This interview was conducted by Shane McC. Shane currently is attending RISD studying computer programming. He enjoys traveling and plays hockey. He played for the Boston Junior Bruins of the EJHL during the 01-02 season. You can follow him on Google+

Tell my audience about yourselves. What made you want to start your website themoneyprinciple.co.uk?

I started The Money Principle in 2011, when we were a year in our debt repayment; it wasn’t supposed to be (and it isn’t) a debt diary. I had already realized that for someone educated I know very little about money – mainly because I wasn’t sufficiently interested. My blog is a reflection of this renewed interest in ‘all things money’ and contains the learning, thinking and experimenting I/we did over the last couple of years. And the learning paid off – we don’t have consumer debt any longer.

Please name some quick and easy ways for a person to improve their credit even if they’ve recently been through a divorce or some type of financial calamity?

Improving credit is to a degree a mystery to me, mainly because it is to a large degree a matter of balance. If you haven’t borrowed you are a risk; if you have borrowed too much you are a risk; and, naturally, if you have borrowed and failed to pay back lenders won’t touch you with a barge pole. Lesson: borrow a bit and always pay your debts back on time. People can also do things like register to vote (which one should do anyway, I am very ‘old school’ on this one).

But the best way to improve your credit is not to damage it to begin with. Though, even if you have a spotless credit history you can be refused credit if lenders think that your borrowing to earnings ratio is not good. In such cases there are two choices: reduce your borrowing or increase your income.

When a person walks into a car dealership what are some credit questions you recommend that consumer ask the salesman or finance manager?

I am not sure that I am the best person to answer this one: I usually get it wrong. I don’t ask credit questions for three reasons:

First, with cars I get too hung up on image and I don’t mean ‘posh’ one; last time I did this I ended up with a two sitter Smart. The day after I bought it I realized that I can’t take my son and his friend to the cinema – not enough space. My husband asks whether one can get a washing machine in the boot. Again, misleading.

Second, I did buy my last three cars for cash. Were I to need credit I would have asked for 0% credit and would have made sure to read the ‘small’ script very carefully so that you remember when this expires – interest after that can be crippling.

Third, with cars we have moved away from ownership to use. We find that there are very good deals on leasing and choose smaller, economical cars. At the moment we drive a brand new Skoda CityGo – drives like a dream and does ‘what it says on the tin’; which is about seventy miles to the gallon.

How long does the credit restoration process take?

Depends. But it can take between several month and couple of years.

If a person can’t purchase a vehicle in cash, what’s the ideal down payment you recommend they have? Does a larger down payment mean a shorter loan and APR?

On this one, I am rather old school again: get together as large down payment as you can. Cars are a liability (albeit a necessary one) and borrowing money to buy liabilities is not smart.

In you’re a first time car buyer and you’ve never shopped for insurance before, what are some tips to get the lowest payment possible? What are some questions you should ask your insurance agent?

Being young is not good when it comes to car insurance. Apart from this two other factors play: length of driving experience and driving history. If I were a young, first time car buyer I would go for something that will allow me to get only third person insurance – it is not good for the ego (old banger of a car) but my bank account won’t go in the red for a year ahead. My aim would be to build driving history and, well get a bit older, I suppose. I am not sure that comparison would help much – all insurance is likely to be very expensive.

Besides themoneyprinciple.co.uk what are some of websites/blogs you would recommend our visitors visit while trying to improve their credit?

To be deemed ‘credit worthy’ you have to be financially responsible. Read the good finance management blogs; too numerous to list but with a little effort one can find them (it is also a matter of what one enjoys reading). My main recommendation would be: don’t stop with websites and blogs – read wider to improve your financial education; responsible financial behavior will hopefully follow.

Please visit Maria Nedeva blog @ The Money Principle
Facebook
Twitter

This is our nineteenth interview in our “1000 Interview Challenge” If your interested in an interview, please contact me.

This interview was conducted by Shane McC. Shane currently is attending RISD studying computer programming. He enjoys traveling and plays hockey. He played for the Boston Junior Bruins of the EJHL during the 01-02 season. You can follow him on Google+

Tell my audience about yourself. What made you want to start your website thefreefinancialadvisor.com?

I’d been a television personality for 9 years on local Detroit tv (I was the “Money Man” on WXYZ Channel 7 News. When I left the financial planning business, I missed talking about money. The site was a way for me to stay in touch with an area that I love.

I also think there are lots of practices going on behind the scenes that people needed to know about AND there are ways good financial advisors think about money problems that are different (and more effective) than the way the average person with debt thinks. I called myself “Average Joe” on the blog because I’ve always been an average guy who had to teach himself about money.

Please name some quick and easy ways for a person to improve their credit even if they’ve recently been through a divorce or some type of financial calamity?

The largest driver of your FICO score is to pay bills on time. So, either pay on time or get in contact with creditors quickly to try and keep negative statements off your credit report.

You know a calamity is coming at some point, right? The best move anyone can do right now is to create a small emergency fund. Sock away at least $500 so that when your muffler’s dragging behind the car you don’t have to tap your credit.

When a person walks into a car dealership what are some credit questions you recommend that consumer ask the salesman or finance manager?

Much of the process should take place BEFORE they talk to the finance manager. First, I want to know how my credit looks before the finance manager runs it, so I’ll order a free credit report and make sure it’s clean.

When I’m talking to the salesman I need to have already looked up how much the car is really worth, what my resale value will be down the road, and I should have already looked at my budget to know what payment I cal live with.

The last time I bought a car from a dealer I went to the web first and found out what car I wanted. Then, I test drove one to make sure by visiting a dealer. I told them upfront that I wasn’t interested in buying. I just wanted to drive one.

Then, online, I asked five of the closest dealers to give me their best deal. I was amazed when the quotes came in $1,500 different from each other for the same car! Make sure you don’t give anyone your phone number until you’re ready. Two dealers didn’t want to give a quote unless I came in.

By the time I walked into the dealership, I knew the price of my car, the loan amount, the monthly payment and the duration of the loan. I wasn’t going to ask the salesman or finance manager anything until we arrived at loan fees (there should be no fees and no prepayment penalty. I also received a better interest rate because I signed up for automatic payments out of my checking account.)

How long does the credit restoration process take?

It depends on how bad it is. If your credit is horrible it can take years. If there are two or three miscues but not much else, you could clean it up in hours.

If a person can’t purchase a vehicle in cash, what’s the ideal down payment you recommend they have? Does a larger down payment mean a shorter loan and APR?

If you can’t pay cash, you want to either have as much money available to pay off the car as possible or put down as much as possible. At that point it’s all about interest rates to me. If I can grab as low an interest rate for a four year loan as I can a two year loan, why wouldn’t I take the four year loan? Then, once I have the longer term, I make bigger payments to pay down the loan quickly.

I can hear people asking….why don’t I just take the shorter loan? Here’s a question back: Why do businesses figure out their own debt structure and THEN ask the bank for a loan based on the terms they want? Why do people make good decisions for a company and then make emotional decisions with their money at home? Logically, I want to make sure that if I’m disabled or have an emergency, that I don’t lose my car. Take out the longest loan possible at a low interest rate and then pay it back quickly on your own terms.

If you don’t think you can do this because you don’t have the discipline, you’ll need to solve that problem quickly so that you can start dictating your own financial terms instead of relying on others to babysit you.

In your a first time car buyer and you’ve never shopped for insurance before, what are some tips to get the lowest payment possible? What are some questions you should ask your insurance agent?

Ask about discounts! Agents know some great discounts but often won’t volunteer information…you have to ask. Also, remember that price isn’t everything. People want low cost (and so do I), but I also want to know that when something goes wrong, that insurance is going to be there for me and my claim will be handled quickly.

Besides thefreefinancialadvisor.com what are some of websites/blogs you would recommend our visitors visit while trying to improve their credit?

My friend Dominique Brown at Your Finances Simplified talks about credit a ton. He has a good video series on the topic. He’s on our 2 Guys & Your Money podcast every week and is a blast to work with. It’s a funny podcast, but he makes it funnier.

I also like a number of the blogs about how you think about money. Tie The Money Knot is a nice site for married people to think about money and relationships. I like Budgets Are Sexy for good discussions on earning a little extra income. I Heart Budgets is a good blog about tightening the belt.

Thanks Joe. Please visit Joe’s website and friend/follow him on his below social media outlets.
The Free Financial Advisor
Facebook

This is our seventeenth interview in our “1000 Interview Challenge” If your interested in an interview, please contact me.

This interview was conducted by Shane McC. Shane currently is attending RISD studying computer programming. He enjoys traveling and plays hockey. He played for the Boston Junior Bruins of the EJHL during the 01-02 season. You can follow him on Google+