Tell my audience about yourself. What made you want to start your website Money Crashers?

I’ve always been passionate about prudent money management, as well as helping others, so it just seemed like a natural fit for me to work on Money Crashers. I also studied economics in college, which gave me a good background.

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?

First, pay all your bills on time and in full. Although this may seem minor, it in fact counts for roughly 35% of your credit score. You should also check your credit report for errors via AnnualCreditReport.com, which allows you to request a free copy once per year from each of the three major credit reporting agencies. Paying down your credit card and other debt balances can help, and you should also leave your credit card accounts open, even if you don’t use them anymore. Credit reporting agencies like to see a large amount of available credit with as little as possible utilized. However, keep in mind that some credit card issuers will lower your limit or even close the account if they notice an extended period of inactivity. To avoid this, use these cards on a timely basis for a few minor purchases and pay the balance off immediately.

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

Most of the questions you should ask a finance manager when buying a car are only pertinent if you have a bad credit score. If your credit is good, you’ll usually qualify for the best interest rate available. If your credit score is less than stellar, be upfront about that with the finance manager and ask how much that will affect the overall price of the car.

How long does the credit restoration process take?

The amount of time it takes to repair or restore your credit really depends on the details of your situation. If your credit score simply needs improving, the time frame is much shorter. It can be as little as several months to just a few years if your issues are rather minor. However, if you’ve had accounts go into collections, have been foreclosed on a home, declared bankruptcy, have had a tax lien, or have endured any other major financial calamity, the process can take anywhere from 7 to 10 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?

The ideal down payment is as much as you can afford financially without incurring other debts in the process. It makes no sense to put $10,000 down on a car if by doing so you can’t keep up with your monthly bills. However, if you put down a large down payment, you can decrease the term of the loan, as well as the APR.

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?

If you’re a safe driver, one way to lower the monthly payment on an auto insurance policy is to raise your deductibles. Just make sure you can afford the deductible should an accident occur. You can also lower the cost of auto insurance by raising your credit score as much as possible before purchasing your vehicle. The type of vehicle you choose can also affect what you pay for insurance. Some minivans, SUVs, and pickup trucks cost less to insure than sports cars.

When you speak with your auto insurance agent, be sure to inquire about any discounts you may qualify for. For instance, younger people may be able to get a discount if they get good grades in school, and you can also get a discount if you bundle your auto insurance with other policies, such as homeowners insurance. If you don’t drive that much, mention that to your agent as well. Also, if you pay your policy in full for the year, you’ll save on monthly payment processing fees.

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

There are several other websites you can use to improve your credit, although Money Crashers does have a fairly extensive list of articles on that topic. A few others to consider are the websites of the three major credit reporting agencies: TransUnion, Experian, and Equifax.

Andrew Schrage, co-owner of Money Crashers
Twitter
Facebook
Google+

This is our ninth 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+