Rates are high, housing inventory is down, and competition for new originations is fierce. Leaders across mortgage and banking are turning to their marketing partners with some variation of the same ask: “We need to improve the effectiveness and profitability of our campaigns, increase originations, and oh, by the way, budgets have been slashed — so any ideas better be cost-effective.” Easy, right?
Sure, multi-million-dollar ad campaigns and exciting new lead sources would be great, but often lenders can find opportunities more efficiently by referring to the data and resources they already have. Many lenders have access to a large amount of consumer data, namely their customers and prospects, and the attributes they know about them.
Here’s how to turn those existing data assets into origination opportunities, all while creating a better experience for customers.
Get your data in shape.
For example, Americans move on average 11.4 times in their lifetime and alerting their bank to a change of address is not always a priority, especially for those who interact with their financial institutions digitally. So, until the consumer volunteers that new address, direct mail offers are likely piling up at their old one. At scale, this can generate enormous marketing waste.
If you’re relying on consumer information collected years ago, it’s good to score it for accuracy and update it regularly. Refreshing your data avoids the risk of misplaced marketing expenses and missed opportunities to engage with customers and prospects. This goes for phone, email and digital identifiers as well. To market effectively it is crucial to have accurate consumer information.
Taking it a step further, consider whether data is being collected accurately to begin with, especially on lead submissions. Many consumers are, rightfully, hesitant to submit a correct phone number on a lead form. This hesitation not only hinders lenders from reaching them, but also poses a compliance risk to the business if incorrect numbers are dialed.
Expand on what you know.
Even if you have the right information and tools to engage customers and prospects, you likely can’t engage with all customers at all times, nor should you want to.
This is where expanding what you know about the consumer comes into play. Demographic, financial, and psychographic attributes can all help in segmenting target audiences for more effective engagement and deliver a more meaningful experience for the consumer. Consider developing an “ideal customer profile” that correlates with a higher conversion rate, then find and prioritize these “ICPs” within your database. This will be significantly more effective than “one size fits all” campaigns.
You can also use these insights to build out digital audiences for acquisition. It’s remarkable how many financial institutions deploy a universal model when there will be significant variation across how their prospects and customers respond to their marketing. By understanding and leveraging this variation, lenders can cut wasted spend and improve profitability. As with getting data in shape, these insights can also be leveraged at the point of lead submission to inform things like scoring, routing, and messaging from the first consumer interaction onwards.
Remember that great marketing requires great timing.
Most lenders leverage credit triggers to try to prevent competitive fallout, and it’s often considered table stakes for any retention strategy.
However, consider this: a credit trigger means a consumer is likely applying elsewhere and solely relying on that insight is akin to showing up to the game in the fourth quarter. And because other lenders are also getting that trigger, it’s like showing up to play against five other teams. Not surprisingly, there’s even a legislative proposal to ban credit triggers entirely in the name of consumer experience. Delivering an effective and relevant consumer experience requires engaging with consumers earlier in their homebuying journey.
We’ve historically seen consumers first start shopping online for a new mortgage or home around 100 days before a credit trigger, a timeline that’s expanded even further with the current rate environment and limited housing inventory.
Evaluate internal and external resources that can help you determine who might be at the beginning of that shopping process. It’s going to be a long process, so create touch points to offer the consumer resources that will keep them engaged with your brand throughout their homebuying journey.
Galen Foote is an enterprise account executive at Verisk Marketing Solutions.
Wage growth is not spiraling out of control as some have feared; this would have been bad news for mortgage rates because that’s what happened in the 1970s. However, wage growth has stayed firm the past few months. With headline consumer price index inflation running at 3% year over year, people are seeing real wage growth again, as we have been steady at 4.4% for a few months here.
The unemployment rate for those who didn’t finish high school has been pretty wild up and down lately; in this report it fell from 6.0% to 5.2%. Traditionally, those without a high school education tend to have the highest unemployment rates in any recession.
In this job report,the unemployment for education levels:
Less than a high school diploma: 5.2%
High school graduate and no college: 3.4%
Some college or associate degree: 3.1%
Bachelor’s degree or higher: 2.0%
The hours worked were less in this report, meaning that employers are holding onto their labor but are cutting hours. If you want to see why mortgage rates are falling today, this is one data line to keep an eye on going out for months.
What other labor data did we have this jobs week?
This week we had a decrease in job openings, but that number is still abnormally high for the Fed. Even though we have fallen from 12million to under 10million, the Federal Reserve would love to see this back toward the 7million level. So far, no luck! Here is a look at job openings with a longer-term view, and you can see the decline from the peak.
Now the quits ratio is almost back to pre-COVID-19 levels; this is a big thing for the Fed because less people are leaving work for higher wages, which they see as a positive.
Jobless claims, the most important data line at this expansion stage, rose this week, but it is still far from my key 323,000 target level for the Fed to pivot.
From the St. Louis Fed: Initial claims for unemployment insurance benefits increased by 6,000 in the week ended July 29, to 227,000. The four-week moving average declined to 228,250
So what does this mean for mortgage rates? Today we were close to testing the high-end range for my 10-year yield 2023 forecast of 4.25%. We got as high as 4.20% but bond yields have fallen since that level. As I write this article, the 10-year yield is currently at 4.04%.
The 10-year yield channel has held in my range of 3.21%-4.25%, which equates to mortgage rates of 5.75%-7.25%, assuming where the spreads were at the start of the year. This is how I traditionally forecast mortgage rates for a year, by creating a level of where the bond market should be for most of the year. If the 10-year yield closed above 4.25% today and we saw more bond market selling next week, we would need to have a new conversation about mortgage rates rising more this year than I had anticipated. However, that hasn’t happened yet.
It’s been a crazy week with jobs data and the bond market. The key, for now, is that the labor market is slowing down but not breaking. We held the key line on the 10-year yield and mortgage rates went lower today, so at least for one day the housing market can say it was a good Friday. Next up is the Consumer Price Index inflation report on Aug. 10, which will be a market-mover for mortgage rates.
Achieving success as a real estate agent requires more than simply understanding the mechanics of the job. Yes, you should certainly be able to post an impressive listing and understand the ins and outs of closing, but helping buyers and sellers means cultivating a diverse set of skills to navigate a complex and ever-changing real estate market. Here are 10 essential skills every real estate agent should possess.
1. Solid understanding of the market
It doesn’t matter if you specialize in investment properties, second homes, condos, or single-family homes for first-time buyers. The first skill you need is the desire and drive to stay current with market conditions. This includes understanding:
This knowledge helps you find the best properties for your buyers and ensures that you price a seller’s property appropriately.
2. Skillful communication
Communication is one of the most critical skills a real estate professional can cultivate. These skills help you to be both a better listener and a better speaker. And why is this so important?
Real estate professionals who listen carefully better understand their clients’ wants and needs. They won’t waste time on mismatched properties or investments beyond a client’s reach. And when it’s time to wade through complicated contract language or explain the benefits or drawbacks of a property, agents who communicate better have a leg up on their competition.
3. Talent for negotiation
Negotiation isn’t easy. There’s a delicate balance between being assertive and pushy compared to compromising and capitulating. Real estate agents who work hard to refine their skills are better at reading a buyer or seller so they can negotiate the best deal possible, even under challenging circumstances.
4. Dedication to service
Real estate is, in the end, customer service. So how does your customer service measure up?
Do you promptly return emails and phone calls?
Are you available to show properties during high-demand times (weekends and evenings, and, yes, sometimes holidays)?
Are you ready to go above and beyond to meet a customer’s needs?
If you answered “no” to any of the above questions, chances are good your customer relations need some work. This does not mean you should allow clients to walk all over you. But ultimately, if you want to close the deal, the customer (with a bit of hand-holding) is always right. It can be challenging to deal with needy clients, but they can also be the most loyal when you demonstrate your commitment to their happiness.
5. Ability to network
As with many jobs these days, you’re only as good as your team. Real estate agents may seem like lone wolves, but they are just the leader of a tight-knit pack of professionals. These include:
Contractors
Inspectors
Loan officers
Closing agents
Real estate attorneys
Real estate professionals who can call on a trusted network to make the deal move through the channels smoothly are more successful and sought after than those who struggle to make or keep contacts.
6. Marketing skills
Real estate agents are a little of everything: teacher, counselor, and financial adviser. Another hat to place on your head? Marketer.
Nothing draws more potential buyers than a beautifully crafted listing with eye-catching photos and tantalizing text. That doesn’t happen all on its own. And once you get that perfect listing assembled, it’s time to blast it on social media to get even more eyes on it.
Skillful marketing is also about understanding who’s buying and selling. A change in the target demographic means adjusting your marketing strategy appropriately. Some old-school realtors need help to adapt to marketing methods beyond paper advertising or direct mail. Don’t let that be you.
7. Comfort with new technology
Marketing is another area that has seen massive change in the last decade. These days, buyers and sellers complete complex real estate transactions from their couch, never visiting a property or setting foot in a closing agent’s office. So how comfortable are you with new real estate technology?
Can you:
Send and receive documents for electronic signatures?
Set up virtual property tours and respond to questions from them?
Manage tour scheduling on a website?
Decipher property valuation software for clients?
Realtors who are not comfortable with the latest technology in real estate will not be as successful in the years to come.
8. Time management
There’s an old saying: There’s no such thing as being on time — only late or early. It’s common for people to juggle full-time work, family, and volunteer activities, but how do you get it all done?
Time management. It doesn’t matter what your system is for being on time and meeting deadlines, so long as you have one. No client wants to feel like they are last on your list, even if you have a sick toddler or an overdue project for a night class. Use online planning tools or a paper notebook: whatever it takes to ensure your clients get the attention and service they need right on time.
9. Emotional intelligence
Buying and selling a home can be a complex and emotional process. Maybe a family is selling the home of a loved one who has moved to assisted living and needs to liquidate this asset. Perhaps a first-time buyer is realizing the dream of their first step to generational wealth building.
It’s not just a simple business transaction for these sellers and buyers. It’s personal, and you need to have the emotional intelligence necessary to honor their experience while still serving the needs of the transaction. It’s a delicate balance, but it’s essential to ease people through sometimes-challenging transitions.
10. Integrity
Integrity is doing the right thing even if no one is looking, and it can be a difficult skill in a profession with its fair share of dubious loopholes and quasi-legal transactions that nevertheless feel a little “off.”
Don’t be that real estate professional who goes for the deal at any cost. Too many people get so blinded by the possibility of lucrative commissions that they neglect to act ethically. This compromises the respect of the profession overall and can undoubtedly damage your reputation locally.
Act in a way that feels ethical and honorable to maintain personal integrity and achieve a successful career you can be proud of.
Luke Babich is co-founder and CEO of Clever Real Estate.
It’s no secret that celebrities have said some wild and outrageous things—both on-screen and off. From ridiculous demands to understanding complicated topics, these famous people will make you shake your head in disbelief. Whether it was a misinformed statement or something downright silly, prepare to be amazed by what they had to say or did! So get ready for an entertaining read as we explore the dumbest statements uttered by our beloved stars of stage and screen.
1. Not Fake a Hate Crime
One user posted, “Jussie Smollett. Tracy Morgan said it best: ‘Yeah, they gave me a role on “Empire.” Contractually, they gave me millions of dollars. Contractually, all I gotta do is not fake a hate crime.’”
Another user replied, “Dave Chappelle’s bit about Jussie Smollett was pretty funny too. ‘The black community supported Jussie Smollett by keeping our mouths shut.’”
“This is the top one for me. It took so much careful planning and effort,” one commenter added.
2. If I Did It
One Redditor posted, “Making a book called ‘If I Did It’ after being acquitted of murder.”
Another user replied, “The family of OJs victims got the rights of the book and made the ‘if’ incredibly small.”
One commenter added, “Also, the forward they added is called ‘He Did It.’”
Another Redditor said, “Kids today will never understand what a BIG FREAKIN’ DEAL the whole OJ thing was, from the car chase to the trial. So really, if it weren’t for OJ, we wouldn’t have The Kardashians.”
One user explained, “OJ was one of those athletes who managed to cross over to pop culture. He was on TV often between his acting and product endorsements. In addition to being considered one of the best football players, he had a squeaky-clean image. The closest parallel I can draw today is if Peyton Manning killed his wife and went on a police chase. Of course, there probably wouldn’t be a racial component as there was with OJ, but as far as images are concerned, OJ and Manning would be similar.”
3. Joining Scientology
One user posted, “Joining Scientology, promoting it, and defending it.”
Another user replied, “Just look at Danny Masterson, they tried to cover up his [sexual] scandal, and thankfully he was convicted.”
4. Performing an Ukulele Apology
“Playing the ukulele to ‘apologize’ for being creepy to kids you met on the internet,” one Redditor posted.
Another user commented, “There’s no quicker way to make people think you’re diddling kids than writing a song about it!”
One commenter responded, “I saw a meme about it today, and it was like ‘Common playing in A minor got you in this situation in the first place’ and I was crying laughing.”
5. Trying to Bring a Controlled Substance On an Airplane
Another user added, “Former NBA player Damon Stoudamire tried to get over 1 ounce of [drugs] onto an airplane, but got caught at the metal detectors because he wrapped it in Aluminum Foil.”
One user asked, “Is that what happened to him?! I was wondering why he just got up and disappeared.”
“He’s the head coach of Georgia Tech,” one Redditor answered.
6. Being Bill Cosby
A Redditor shared, “Bill Cosby for being Bill Cosby. Millions adored this man as the father figure they always wanted. Until he wasn’t the father figure anyone wanted.”
One replied, “This one hurt severely. The public loved him. He had great stand-up routines and tv shows. I got to see him perform once.
“Then, Boom. It turns out he’s [sexually assaulted and] drugged women. Ugh.”
Another user added, “It was absolutely heartbreaking. I watched every episode of The Cosby Show, some more than once. It made me feel good; happy memories; everything was okay. Until it wasn’t.”
7. The Streisand Effect
“Barbra Streisand created Streisand effect. She didn’t want her home to be known on the internet, so she did everything in her power to remove pictures and addresses but wasn’t successful, and in return, her home became a hot topic,” one user added.
One user replied, “It seems dumb today, but the internet was pretty new and kind of unknown to most people. I imagine this was thought the same way as going after a tabloid. But instead, we witnessed an entirely new phenomenon.”
Another user added, “The funny thing was, prior to her lawsuit, the picture featuring her house had been viewed five times. Presumably, one of those was Streisand herself, and another was her lawyer. IIRC, the offending picture was part of a project to photograph the entirety of the California coastline. So thousands of images. One of which happened to show the back of her house. There was nothing in the picture that identified the house as hers.”
8. Antonio Brown Incidents
One user posted, “Here’s a list of Antonio Brown incidents from another thread. He could have legit been a potential Hall Of Fame player, as he was arguably one of the best WRs in the NFL. Then… he took crazy to a level that makes Kanye look sane. The dude has a lot more time to add some stupid [things] to it, but here goes:
“Edit: The newest is buying an Arena Football Team to be an owner/player then not paying league dues… currently the target of a class-action lawsuit for withholding paychecks to players as well.
“•Kicked out of Florida International University after fighting a security guard…
“• His second year in the league, he took a personal stretch limo to a charity event, had them open every single expensive bottle of wine, and rejected it. They refused to pay for it (charity, remember), then left. -credit Nduguu77…
• Trashed a condo and threw furniture out a window 14th-floor window, which almost hit some people, notably a child…
“• Threw a fit over Juju winning team MVP and trashed him on social media…
“• Held out and refused to show up to training camp because the NFL would not approve his helmet because it was too old for their safety standards…
“• Got fined by the Raiders for not attending camp…
“• Tried to fight Mike Mayock, called him a cracker, had to be held back by Vontaze Burfict, then punted a football down the practice field and said, ‘Fine me for that.’ [He was fined.]…
“• Released a video where he used audio of Jon Gruden, who didn’t know he was being recorded, which is illegal in California (full disclosure, Gruden has said he gave permission, but the generally accepted theory is that he said that in the hope that it would help get him to show up to the facility and not alienate him.)
“• Demanded a release from the Raiders…
“• Made a lot of crazy tweets saying stuff like ‘Devil is a lie,’ a proverb about burning down a village… he made a lot of crazy tweets around this time is the point here…
“• Signed with the Patriots…
“• The sexual assault allegations came out (the one where he’s getting sued)
“• The sexual harassment allegations came out (the one where he’s not getting sued)
“• Threatened the woman not suing him in a group text that included his lawyer and had a picture of her kids in the text
“• Got released by the Patriots after one week
“• Went off on a tweet storm and said a lot of crazy [things] about a lot of people, and was supportive of people sending threats to the writer of the article detailing the sexual harassment allegations
“• Said he was done with the NFL
“• Went back to college via online classes
“• Tried to outsource his homework to Twitter
“• Wants to come back to the NFL
“• Filed several grievances to try and get more than $40 million from the Raiders and Patriots…
“• Tweeted a couple of bizarre tweets about the Raiders using him for HBO ratings and the Patriots trying to steal his stuff and kept using this weird chicken-based metaphor
“• Tried out for the Saints and brought an entourage and film crew to shoot a music video with him when specifically told not to do that…
“• Tweeted ‘No more white woman 2020.’…
“• Used a bunch of slurs and profane language toward cops in an Instagram video he posted
“• A police youth football league cut ties with him and returned a donation after the release of the video saying there was an ‘irreparable rift’ between the department and AB…
“• Was involved in a dispute with movers at his home, where he allegedly threw rocks at the movers and moving vans. He is currently being investigated for battery by the police…
“• Warrant issued for the arrest of AB…
“• Rumors spread about AB signing with Tampa or Seattle
“• AB announces his retirement (for what I believe is the third time, it’s hard to find a good record of the rest of them.) Two days later, AB wants to play again and is asking for the league to wrap up its investigation
“• The NFL announces an eight-game suspension for AB… under investigation for the bike-throwing incident
“• Allegedly acquired fake covid-19 card. Confirmed to have acquired a fake covid-19 card and subsequently suspended for three games
“• Removed jerseys and pads and threw them in the stands before exiting the game verse the Jets. Was subsequently cut from the Bucs for stripping on the field…”
9. Praising Nazi Germany
“Losing a billion-dollar shoe deal b/c he couldn’t stop talking about how much he loves Hitler,” one user added.
Another user replied, “When Alex Jones is trying to reign you in, you know you’re spouting some crazy [things].”
One commenter shared, “That was such a bizarre interview. Alex REPEATEDLY gave him outs like, ‘As a fashion designer, surely you just appreciated their uniforms, RIGHT?’ And Kanye pretty much says, ‘Nah, I just like Hitler, man.’ Wtf?”
10. Staging a Hate Crime
One user answered, “[Jussie Smollet] is a contender, although many choices exist. He stages a hate crime to gain leverage in contract negotiations… He hires meatheads to do the deed and pays them with a check. Of course, he lied the whole time, then the video turns up, and the DA figures it out.
“But being famous, he pulls strings and escapes prosecution for making a false claim. THEN…the political tide shifts, and he runs his mouth and refuses to reimburse the county for the cost of the investigation. And so the new DA says f- it and prosecutes him, and he gets convicted because he was obviously guilty.”
11. Posting a Video of Violent Death
“Logan Paul posted a full YouTube video of someone hanging in a forest,” one user posted.
Another user commented, “Well, his whole family seems like crap, so no surprise he’s a huge [jerk].”
One Redditor added, “Even worse was that he was in Aokigahara, the ‘suicide forest’ in Japan. It’s unclear why that forest is such a popular place for people to un-alive themselves, but to revel in such a horrible event for internet fame is despicable.”
12. Saying You Could Have Saved Flight 11
One user posted, “Mark Wahlberg saying if he had been on flight 11 (like he was supposed to), it wouldn’t have crashed because he would have killed the terrorists then figured out how to land the plane.”
Another user replied, “So he said what every person in Boston says daily.”
13. Debating Word Definitions
One user shared, “That time Jennifer Garner corrected Conan O’Brien on the word snuck is one of my favorites. The fact that she throws in the bit about him going to Harvard makes it extra delicious.”
Another user replied, “His laugh when pulling out the dictionary to prove her wrong lives in my mind rent-free.”
14. Gwenyth Paltrow’s Goop
“Gwenyth Paltrow and everything she promotes. Here’s a tea made with echinacea, random plants I got from cutting my yard. I stirred it with my [privates]. It’ll cure ED, lung cancer, whatever. Now available at Goop,” posted one user.
Another user replied, “Doesn’t everyone want a $100 candle that smells like my [body]..?”
15. A Math Called Terryology
One user posted, “Terrance Howard ‘invented’ his own math called Terryology.”
Another user replied, “‘How can it equal one?’ he said. ‘If one [times] one equals one, that means that two is of no value because one [times] itself has no effect. One [times] one equals two because the square root of four is two, so what’s the square root of two? Should be one, but we’re told it’s two, and that cannot be.’”
Do you agree with the statements listed above? Share your thoughts!
Source: Reddit.
These are 10 Things That Completely Destroyed The Love in a Relationship
There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!
10 Actors and Actresses People Refuse to Watch Ever Again
We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!
Top 10 Worst Human Inventions of All Time
Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.
10 Famous Celebrities Who Look Like They Smell Terrible
We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.
10 Terrible Fads People Are Glad Died Out
Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
Rule #1 by Phil Town is not a general personal finance book, and it’s not a book for beginning investors — it turns a lot of conventional investment wisdom on its ear. The book explores a philosophy ascribed to Columbia University’s Benjamin Graham (author of The Intelligent Investor), and popularized by Graham’s student, Warren Buffet (perhaps the most successful investor of all time).
What is The Rule? “There are only two rules of investing: Rule #1: Don’t lose money […] and Rule #2: Don’t forget Rule #1.” Town writes: “Most Americans are trapped in mutual funds that, at best, ride the waves of the market.” He believes that his method can help investors break free from these cycles.
At its heart, Town’s philosophy is simply “buy low, sell high”. He’s not pushing a get-rich-quick scheme (though at times, especially early in the book, that’s exactly how it comes across). But he’s certainly encouraging his readers to abandon traditional “get rich slowly (and surely)” techniques.
Town argues that there are three myths of investing:
You have to be an expert to manage money.
You can’t beat the market.
The best way to minimize risk is to diversify and hold for the long term.
Dollar-cost averaging will not protect you, he says. These statements may make some nervous about Town’s philosophy. In the recent Wall Street Journal article about personal finance books, one expert cautioned:
“Any book that suggests it has a new way to riches should probably be a little suspect,” says Prof. Kenneth Froewiss, a finance professor at New York University Stern School of Business. A good book about personal finance, he says, always elaborates on three simple themes: Save early, know your risk tolerance, and diversify.
Town says that “knowing you will make money comes from buying a wonderful business at an attractive price”. If you can find a wonderful business, know what it’s worth as a business, and then buy it at a discount, you will become rich. If you repeat these steps, you will become very rich. “The price of a thing is not always equal to its value,” he says, arguing against Efficient Market Theory. He points to the recent Tech Bubble as an example. (As you might expect, Town doesn’t care for A Random Walk Down Wall Street.)
Rule #1 describes how to evaluate the investment potential of a business. You want:
A company that means something to you (you know its inner workings because you’re passionate about it).
A company that has a wide moat, or protective buffer (whether this is a competitive advantage, a huge cash reserve, or an exclusive license).
A company with excellent management.
A company with a margin of safety (that is, a company priced so low that even if you miscalculate its target price, you’re not going to lose money).
Using Town’s method, an investor creates a watch list of companies that meet each of these four criteria. Each company’s financials are checked against five measures of fiscal health (return on investment, revenue growth rate, earnings-per-share growth rate, equity growth rate, and free-cash-flow growth rate) over periods of one, five, and ten years. If a company’s numbers look good, the investor develops a target price for it.
And then the waiting begins.
When the market price reaches 50% below what the calculations show it ought to be, the investor fully commits himself. Sort of. Ideally, says Town, you would hold a company’s stock forever. In reality, he argues that there are a couple of times to sell:
When a company has ceased to be wonderful.
When the market price is above the sticker price.
It is here that the Rule #1 system begins to resemble day trading. When you’ve found your ideal business, and when it passes the Rule #1 criteria and is selling at half-off the sticker price, you begin buying and selling the stock based on market conditions. You use a set of tools to make your decisions, constantly moving in and out of the stock. You’re committed to the stock for the long haul, it’s true, but you’re attempting to use market timing to maximize your returns. (Town stresses that these tools should not be used to find and value stocks, but only to time the re-purchase (or sale) of a stock to which you’re already committed.)
The book jacket incorrectly touts this as a “fifteen-minute-a-week” system (which makes it sound even more like a get-rich-quick scheme). The author, though, is clear that more time is needed to make this work. He admits that constructing a watch list takes several hours per company. It’s only after the watch list is created that the time investment declines.
I can’t recommend this book, but that’s because it’s beyond my ken. I don’t hate it. In fact, I find the ideas fascinating, even plausible, but I lack both the experience and the expertise to evaluate Town’s system. It seems to be made of equal parts sound advice and gimmicks. I’d love to read a review from somebody more firmly rooted in investment theory.
One saving grace — and it’s a big one — is that the system includes a built-in escape hatch. By using the “margin of safety”, you are buying heavily discounted stocks of good companies. It’s unlikely that they could fall further. (But not impossible.)
For more information on Rule #1, check the following web sites:
Rule One Investor is the book’s official site. It includes additional information, including handy calculators. (Which is good, because much of this system requires number-crunching.) Free registration required.
The Rule #1 Blog is author Phil Town’s personal site where he answers questions and provides additional insight. I like the fact that Town makes himself publically available. This, too, makes me less inclined to classify this as a “get rich quick” scheme.
A review of the book at Fat Pitch Financials also seems ambivalent about the system. The author writes “I really wish Phil would have shared more information about his past performance using his investment techniques.” I agree.
Dallas, Texas-based Mr. Cooper Group on Tuesday announced it has completed the acquisitions of Home Point Capital and Roosevelt Management Company. With the deals, Mr. Cooper has moved closer to its $1 trillion mortgage servicing rights (MSR) portfolio target.
Mr. Cooper concluded on Monday a tender offer for Home Point’s outstanding shares after extending the deadline twice. According to Equiniti Trust Company, the depository and paying agent for the tender offer, 136,532,192 shares of Home Point were tendered and not validly withdrawn (98.5% of the total). Mr. Cooper paid $2.333 per share.
“This acquisition adds scale to our platform, bringing us closer to our $1 trillion strategic target while enhancing returns due to attractive yields and positive operating leverage,” Jay Bray, Mr. Cooper’s chairman and CEO, said in a statement.
The deal – which will result in Homepoint becoming a wholly subsidiary of Mr. Cooper – was first announced in May and was expected to close in the third quarter of 2023. Mr. Cooper is paying $324 million in cash and assuming $500 million in outstanding Home Point 5% senior notes due in February 2026.
“The transaction includes the assumption of $500 million in bonds with an attractive rate, and as a result, we do not expect the acquisition to have a material impact on the company’s liquidity, which remains at robust and near-record levels,” Chris Marshall, Mr. Cooper’s vice chairman and president, said in a statement.
Also on Tuesday Mr. Cooper announced it completed the acquisition of Roosevelt and its affiliated subsidiaries, which include a registered investment advisor and licensed mortgage servicing rights (MSR) owner. The expectation was that the deal would close in the second half of 2023. The deal was announced in February.
The private New York-based company, founded in 2008, manages third-party capital on behalf of insurance companies, pension funds, hedge funds and other investors.
“We continue to see significant volumes of MSRs trading in the marketplace with attractive yields. Our asset management strategy is designed to make these yields available to institutional investors while continuing to grow our customer base and operational scale,” Marshall said.
Mr. Cooper ended June with $882 billion in unpaid principal balance (UPB), compared to $853 billion at the end of March, according to its second-quarter 2023 earnings released last week.
The servicing portfolio grew because of Rushmore’s special servicing platform acquisition. But other deals may bring the servicing portfolio to $957 billion, including $83 billion from the acquisition of Home Point Capital and $25 billion in pending bulk acquisitions.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
There are many ways to improve your credit score fast, like checking the accuracy of your credit reports, fixing late payments, becoming an authorized user, and much more. Each method can add points to your current credit score.
Having a bad credit score can make it difficult to navigate life, and it can also cost you quite a bit of extra money. A low credit score can increase your interest rates for credit cards and loans and may also require you to put down larger deposits when renting a home or turning on services. However, a good credit score gives you more options for where you can live and the loans you can get. Plus, it can save you money in the long run, which is a win-win for most.
Here, we provide you with 11 different ways that might help you improve your credit score faster. Not only will these methods help you improve your credit score, but they’ll also help you maintain a healthy score in the future.
In This Piece:
Check the Accuracy of Your Credit Reports
Target the Areas You Need to Improve
Fix Your Late Payments
Get Added as an Authorized User
Clear Any Outstanding Collection Accounts
Open a Secured Credit Card
Dispute Credit Inquiries
Be Mindful of Your Credit Utilization
Increase Your Credit Limits
Set Up Automatic Payments
Have Your Utilities Reported
1. Check the Accuracy of Your Credit Reports
The first step in improving your credit score is to be aware of what’s on your credit history. There are three major credit bureaus, Experian®, Equifax®, and TransUnion®, and each has its own credit report and score based on your credit history. That means everyone actually has multiple credit scores.
Sometimes, you may find errors on your report that you’ll need to correct through a dispute process. If you find an error, you’ll have to file a separate dispute with each credit bureau since they’re run separately. If there are multiple errors on your credit reports, you’ll need to dispute each of those individually. You might consider working with a credit repair company to make things a little easier for yourself.
Due to derogatory marks having such a big impact on your credit score, removing errors can be one of the fastest ways to build your credit score.
2. Target the Areas You Need to Improve
Checking your credit reports from each of the three main credit reporting agencies is easy. Under the Fair Credit Reporting Act, you have the right to obtain a free copy of all three credit reports once each year. The government mandates that you can receive one free credit report each year, and you can easily access it at AnnualCreditReport.com. You can also check your credit through our free credit report card, which provides a snapshot of your credit and a letter grade for each of the factors that drive your score.
Once you receive a copy of your credit report, you will know which areas need improvement and where to start.
3. Fix Your Late Payments
Late and missed payments can stay on your credit report for seven years. These derogatory marks lower your credit score and make you appear as a bigger risk to lenders.
The credit reporting agencies don’t remove these items, but you may be able to talk a creditor into doing so. Creditors can forgive one late payment if you have a history of on-time payments and you call to discuss it with them. Removing repeated delinquencies may require a little more effort on your part.
4. Get Added as an Authorized User
You can become an authorized user for a credit card account if you have a friend or family member with a good credit history. Even if you don’t use the credit card, your credit reports will reflect the person’s credit history of on-time payments.
This is also known as “piggybacking” on someone’s credit. Should you do this, it’s important to remember that the other person and yourself are now linked. This means that using the card and missing payments can harm the other person’s credit score and vice versa.
5. Clear Any Outstanding Collection Accounts
Contacting your creditors about paying off your debt is a great way to raise your credit score fast. Make sure that they agree to remove the negative hit to your credit report if you repay it in full—and get it in writing. If this agreement isn’t made, there will likely be no impact to your credit.
After making an agreement with the collections company, request a pay for delete letter to have it removed from your credit report. A pay for delete letter is an agreement in writing stating that the creditor will have the derogatory information removed from your report.
6. Open a Secured Credit Card
Having and using a credit card can help you build credit, but it’s difficult to get approved for a credit card when you have a low credit score, which is where secured credit cards become useful. Unlike a typical unsecured credit card, where you are given a credit line based on your credit alone, you can open a secured credit card by depositing money, which becomes your credit limit.
For example, if you deposit $500, you will then have a $500 line of credit. Banks are more likely to approve you for a secured credit card because it’s less of a risk. Your payments on this card are reported to the credit bureaus, and if you make those payments on time, this can help you raise your credit score.
7. Dispute Credit Inquiries
Many credit inquiries are hard inquiries, and hard inquiries impact your credit score. In fact, a hard inquiry stays on your credit report for an entire year. While each individual hit is relatively small, it can push you over the edge from one credit score tier to one below it. What’s more, several hard inquiries over a short period of time can drop your score by a lot.
Like any other negative factor on your credit report, you can dispute credit inquiries. If you didn’t approve the inquiry into your credit, you may be able to get it removed. This could potentially increase your credit score, but only slightly.
8. Be Mindful of Your Credit Utilization
If you carry a large amount of debt compared to your available credit, your score can suffer. In fact, credit utilization accounts for 30% of your credit score. So, if your total credit card available credit is $10,000, and you’re currently using $8,000 of it, paying down those balances can increase your score.
Keeping your utilization rate at around 30% is recommended. That’s $3,000 in debt on a $10,000 available limit, for example.
9. Increase Your Credit Limits
As discussed above, a low utilization rate is ideal, and one way to improve your credit utilization is by increasing your credit limits. Using the $10,000 example, $4,000 of debt would be a 40% credit utilization ratio. If you increase your credit limit to $15,000, that same $4,000 of debt would only be 26%. But be aware, this could trigger an inquiry and that will impact your score as well.
10. Set Up Automatic Payments
Having a good payment history is one of the best ways to improve your credit score because your payment history accounts for 35% of your FICO score. One of the simplest ways to do this is to set up automatic payments. Simply go to your credit card company’s website, make an account, and set up automatic payments for the minimum each month.
This way, you never have to worry about forgetting your payment. You can also make additional payments during the month if you plan on paying more than the minimum.
11. Have Your Utilities Reported
Typically, your utilities are not reported to the credit bureaus, and not many people realize this. Each month, it’d be great to get positive payment history on your credit score for making these payments on time. You can do this by taking an extra step to have your utilities reported through different services. For example, Credit.com offers this as part of our ExtraCredit® service.
How Your Credit Score Is Calculated
When working on improving your credit score, it’s helpful to know how your score is calculated so you know which factors are the most important. You can then make a plan for where you should start. Here are the major credit scoring factors and how each one can impact your credit score:
Payment history: A history of overdue and missed payments may signal that you are a bigger risk to creditors. Thus, this factor has the greatest negative effect on your credit score. This makes up about 35% of your credit score.
Amount of debt: Debt is 30% of your FICO Score and also weighs heavily on other credit scoring models. This is also known as your “credit utilization,” and ideally, you want to keep it below 30% of your max credit limit.
Age of accounts: Creditors like to see a proven record of borrowing, utilizing, and repaying credit. If you’re new to credit and borrowing, there isn’t a lot of data to go on. This makes up 15% of your score.
Account mix: Making 10% of your score, lenders want to make sure you can handle both revolving and installment credit. This means credit cards that you continue to use after repaying and loans that are closed upon full repayment.
History of credit applications: Multiple hard inquiries on your credit may look like you are overextending yourself financially and appear desperate. This will lower your score. Credit inquiries make up 10% of your score.
How Long Does It Take to Fix Your Credit Score?
Most people want to fix their credit score as quickly as possible, but the length of time often depends on your situation. If you have multiple derogatory marks on your credit report, it may take months or even years for them to drop from your report. When trying to fix your credit score, it’s most beneficial to start with methods you can control, like making your payments on time, disputing errors, and trying to settle your debts with collection agencies.
FAQs
Below, we’ve answered some of the most common questions people have about how to quickly improve their credit score.
Checking Your Credit Report Is the First Step Toward Improving Your Credit Score
Your credit report is the best place to start if you want to improve your credit score. Your credit report will show you your account balances, any derogatory marks you may have, and hard credit inquiries. This will help you see where to start, and you can also find out if there are any errors on your credit report.
To get an idea of where you stand with your credit, sign up for Credit.com’s free credit report card today.
Special purpose acquisition companies (SPACs) are shell companies that go public with the intent of buying a private business. Also known as “blank check companies,” SPACs can be an alternative to the traditional initial public offering (IPO) route.
SPAC IPOs have drawn criticism from those who believe they benefit SPAC insiders over retail investors, and that the businesses that they ultimately take public lack solid business fundamentals.
Here’s a rundown of what investors should know about SPACs before investing in one.
Understanding What SPACs Are
It’s important to know that SPACs go public before they have any actual business operations, and before they have a target company to buy.
SPACs typically have a two-year horizon to find a private company with which they can merge. If they do not find a deal, the SPAC dissolves and returns any proceeds to investors.
While SPACs are less common today, interest in SPACs peaked during 2020 and 2021 as many private companies, particularly ones that had reached “unicorn company” status, looked to debut in public markets. In 2021, there were more than 600 SPACs, up from nearly 250 in 2020.
In 2022, by contrast, there were only 86 SPACs, according to data from SPACInsider.
Some SPACs have a checkered track record, having historically underperformed the broader market, a trend that has continued in the recent boom. SPACs may also offer more favorable terms to bigger, institutional investors versus retail ones, making it crucial that the latter do their research.
The IPO process and trading IPO shares is a risky one for most investors. Understanding the route a company chooses when going public can help investors better assess whether the stock falls within their risk tolerance. 💡 Quick Tip: Keen to invest in an initial public offering, or IPO? Be sure to check with your brokerage about what’s required. Typically IPO stock is available only to eligible investors.
How SPACs Work
Here’s a step-by-step guide to how a SPAC merger typically occurs:
1. A “sponsor” sets up a SPAC. Sponsors are typically industry experts or executives. They can pay $25,000 for a 20% stake — what’s known as the “promote” or “founder’s shares.”
2. The SPAC goes public, promising to buy one or more private companies with the proceeds from the IPO listing.
3. The newly public entity hunts for a private business to merge with.
4. When the SPAC finds a target, stockholders vote on the proposed merger. They have the option to vote against the deal.
5. If the SPAC needs more funding for the merger, stockholders who are institutional investors or private equity firms can provide the additional capital in what’s known as a “private investment in public equity” or PIPE.
6. The target company then merges with the SPAC in a “reverse merger” known as a deSPAC. The target company’s name and ticker symbol on the stock exchange, replacing the SPAC.
7. When SPACs go public, institutional investors have access to shares called “units.” Each “unit” includes a share priced at $10 and a warrant the holder can exercise when the shares reach $11.50.
So let’s say a SPAC’s shares rise to $15 each after the deal is announced, the institutional investor can exercise their warrants and net a profit from the difference between the $15 shares and $11.50 warrants that can be converted into shares.
Recommended: What Is the IPO Process?
History of SPACs
Investment banker David Nussbaum launched the first SPAC in 1993 and went on to cofound the SPAC-focused investment bank EarlyBird Capital. At the time, SPACs represented a new take on the “blank check companies” that had become embroiled in fraud and penny-stock schemes in the 1980s.
Over the next 25 years, SPACs remained a relatively obscure avenue for private companies to go public.
In 2009, only one company went public via a SPAC, and in the decade that followed, the numbers of SPACs per year ranged from just a handful to a high of 59 in 2019. The market saw an unprecedented boom in SPACs in 2020 and 2021, but with mixed results. Many SPACs that went public in 2021 have failed to find merger targets.
The number of SPAC deals since then has continued to dwindle, with traditional IPOs also decreasing.
Recommended: How to Buy IPO Stock
Get in on the IPO action at IPO prices.
SoFi Active Investing members can participate in IPO(s) before they trade on an exchange.
SPACs vs IPOs
The SPAC model emerged after years of dissatisfaction with the traditional IPO process. Some startups may believe that going the SPAC route will put them less at the mercy of the stock market’s mood when it comes to their valuation when listing. The SPAC negotiates the price for the private company behind closed doors, similar to deal making for a traditional merger.
This process may allow for more stability in determining the value of the stock, which is especially attractive when the stock market is volatile. In an IPO, the price is set the day before the listing and often relies on the judgment of investment bankers.
SPACs also may offer a speedier way for companies to enter public markets. A merger between a SPAC and target company can take a few months, while the conventional IPO model can take 12 to 18 months, and requires extensive investment in the documentation for regulators as well as the roadshow for investors.
The Securities and Exchange Commission (SEC) reviews merger terms between the SPAC and the target company, similar to how it reviews IPO prospectuses. However, because the SPAC is a merger, it’s more likely the deal can be marketed using forward-looking projections, which can be helpful for fast-growing companies that aren’t yet profitable.
For IPOs, regulatory rules require that only historical financial statements can be shared.
SPAC
IPO
Valuation negotiated behind closed doors like a traditional acquisition
Valuation determined the day before launch by underwriters
Process takes three to four months
Process takes 12 to 18 months
Merger terms reviewed by SEC
IPO prospectus reviewed by SEC
[embedded content]
SPAC Pros & Cons
There are benefits and drawbacks to investing in SPACs. Here’s a look at some of them. 💡 Quick Tip: If you’re opening a brokerage account for the first time, consider starting with an amount of money you’re prepared to lose. Investing always includes the risk of loss, and until you’ve gained some experience, it’s probably wise to start small.
Pros of SPACs
There are several reasons that SPACs appeal to some investors and founders as a method of taking companies public.
Seasoned Sponsors
Some recent SPACs have had sponsors who are more prominent figures. In essence, betting on a SPAC is trusting an experienced executive to suss out an underappreciated business in private markets and bring them to public markets.
IPO Alternative
Startups have increasingly shunned the traditional IPO model, calling it expensive, time-consuming, and onerous. SPACs have become an alternative for some to go public in an often cheaper, faster way.
Navigating Stock Volatility
SPACs are one way that private companies can manage choppy trading in the stock market, since they can privately negotiate valuations and deal terms.
SPAC 2.0
SPACs were once considered the “backwater of the stock market” and associated with penny-stock schemes. However, some of the more recent ones have featured seasoned executives, investor protections such as time-restricted warrants, and sponsors with more skin in the game.
Retail Participation
Retail investors can potentially get in on a deal at $10 a share. In a traditional IPO, they have to wait until the shares hit the public market after getting priced. Buying a company before it goes public does provide an opportunity for a potentially higher profit if the company eventually succeeds, but SPACs and IPOs are high-risk endeavors that offer no guarantees.
Cons of SPACs
While there are some potential advantages of investing in a SPAC, there are also important risks to understand.
No Deal
With SPACs, there’s always the risk that the SPAC cannot find a company to acquire. While in such cases investors do get their money back, plus interest, they may have preferred to put their money elsewhere during that time period. And because so many SPACs went public in the last two years, there’s now much greater competition for companies to buy, increasing the risk that they’ll overpay for targets or be unable to find one.
Underperformance
Many of the SPACs that have recently gone public have failed to live up to their projections. Short sellers — investors in the market who bet that a stock’s price will fall — have already started targeting SPACs.
Sponsor Payout
Some observers believe that the 20% stake paid to sponsor has been deemed by some observers as too lucrative.
Risk of Dilution
The warrants given to institutional investors who buy into SPACs can potentially dilute others when the warrants are exercised.
Potential Retail Disadvantage
When institutional investors participate in PIPE deals, they’re typically told the potential acquisition company. While this is legal, it’s potentially one way SPACs can favor bigger investors versus smaller ones, who are often left in the dark.
More Regulation
SEC Chairman Gary Gensler proposed new rules that would increase the oversight and accountability for SPACs so that investors would receive the same protections as they would vis a vis IPOs.
SPAC Pros and Cons Summary
SPAC pros
SPAC cons
Seasoned sponsors lend legitimacy
SPAC could fail to acquire a company
Alternative route to IPO
Despac companies have underperformed
Ability to negotiate deal terms in private
Terms favor institutional over retail investors
Some investor protections
Risk of dilution through warrant execution
Some investor protections
Risk of dilution through warrant execution
The Takeaway
While often described as a simple reverse merger, SPACs can be more complex than they seem at first glance. A SPAC is a shell company that attracts investors, raises capital, and then finds a target company to acquire. Although SPACs went through a heyday of sorts in 2020 and 2021, their numbers have dwindled owing to regulatory concerns and some high-profile failures.
As with any investment, individuals can benefit from doing their due diligence on these types of shares, researching the sponsor’s incentives and understanding the terms for the warrants.
Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.
Invest with as little as $5 with a SoFi Active Investing account.
FAQ
Are SPACs good investments?
You’ll need to evaluate each SPAC based on its specific characteristics. While many SPACs have underperformed the market, others have performed in line with expectations. Either way, SPACs and IPOs are considered high-risk investments.
How do SPACs work?
SPACs are shell companies, typically led by industry experts, that go public with the sole intention of acquiring a private company and listing it on an exchange. If investors in the SPAC approve the merger, the companies combine, taking the name and ticker symbol of the newly private company.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
Are you one of the 16% of Americans with a low credit score? Low scores can stick around from poor financial habits when you were younger or if you’re still working up your credit score.
If you’re in that 16%, you’ve probably wondered how to get a car loan with bad credit. Your options might differ from your peers, but there are still ways to buy a car with low or no credit. Read our guide for what you should know before heading to the dealership so you can secure your new wheels, even if you’re still working on your finances.
1. Check Your Credit Score
Before you start researching car loans in earnest, conduct a soft credit score check to see what you’re working with. This check won’t impact your score like a hard check will.
The average credit score in America was 714 in 2022, and you can generally categorize your score based on these ranges:
300-579: Poor
580-669: Fair
670-739: Good
740-799: Very good
800+: Excellent
Once you know which category your score falls into, you’ll have a better idea how to strategize to secure your car loan.
Get matched with a personal
loan that’s right for you today.
Your credit usage impacts your credit score, so it’s important to maintain a solid debt-to-income ratio (DTI). Every lender will have different DTI requirements, but it’s generally recommended to stay below 36%.
Use our DTI calculator to see where your current payments bring you, and you can use that to estimate your ideal car payment budget. Remember that you’ll need to consider costs like the insurance, down payment, and repairs too. So, give yourself some room instead of maxing out your monthly payment.
3. Save Up Your Down Payment
As with any loan, a car loan typically requires a down payment. This ranges anywhere from 10–20%. If you have a lower credit score, you can expect to pay closer to 20% for your down payment.
Start saving up for your down payment as soon as you can. If you can save up for a larger down payment, this can help you secure a car loan even with a lower credit score.
Some common saving strategies include:
Zero-based budget: Create a very detailed budget with a plan for each dollar you earn in a month.
Pay yourself first: Plan to pay your bills as soon as you get paid, then put a predetermined amount aside for savings. The rest of your paycheck goes toward leisure.
50/30/20 budget: Allocate 50% of your take home money to necessities, 30% to any leisure expenses, and 20% to savings.
A high-yield savings account can help you reach your financial goals faster. Double-check your account minimum to ensure you don’t face fees when you withdraw for your down payment. Regardless, saving up a little extra to account for surprise costs is a good idea.
4. Gather Proof of Income
Potential lenders want to see you have a reliable source of income, especially if your credit score needs some work. Your lender might ask for multiple documents demonstrating proof of income including:
Form W-2
Recent pay stubs
Schedule C
Tax returns
Form 1099-R
Social Security statements
Gather these key documents ahead of time to streamline your application process. Consider keeping a folder with copies of anything you might need so everything’s in one place and ready to go.
5. Explore Your Options
We wish financing a car was as easy as checking out one lender, but you should always shop around to find the best deal. Each lender will offer different loan terms. When you’re looking over a multi-page contract, you might not know what to look for.
Here’s what you should ask about before you agree to borrow from a lender:
Down payment amount
Interest rate
Length of loan
Extra costs and fees
Product add-ons
Late payment policy
Prepayment policy
Each state has different rules for taxes and fees on car loans. Check out this state-by-state resource from Edmunds to ensure your lender isn’t tacking on extra fees.
6. Get Pre Approved
The final step before you start shopping for your car is to secure a preapproval from a lender. A pre-approval letter doesn’t guarantee that a lender will give you a loan. However, it’s the closest you can get to one without performing a hard credit check, which typically lowers your credit score.
Compared to a prequalification, a pre-approval is a stronger sign that you can get a loan. Pre-approval is key to negotiating financing with a dealership. So, you’ll want to have one before you find your car.
7. Find Your Car
Finding a car loan with a lower credit score doesn’t have to be stressful. When in doubt, follow these tips to streamline the process and find a car and loan provider that works for your budget:
Follow your gut: If your lender feels shady, don’t ignore that instance. When in doubt, stick with a well-known lender to avoid subprime or predatory lending.
Avoid unnecessary fees: Many dealerships will try to sell you dealership-based insurance or extra warranties. These are generally much more expensive. Therefore, hold off on making these extra purchases until you have time to find a better deal.
Get an insurance estimate: Ask your rep how your insurance may change based on the car model you’re looking at. A less expensive model might bump up your rate more than it saves you in the long run.
Do your research: Most people walk into a dealer unprepared to negotiate. Research the true value of the car you’d like and practice negotiating if it makes you nervous. This will help you get the best deal for your car.
Tips for Buying a Car with Bad Credit
If you’re buying a car with a lower credit score, you might be worried about people taking advantage of you at the dealership or lender. Use these tips to educate yourself along your car-buying journey.
Don’t Neglect Loan Terms
While low monthly payments are a priority for most car buyers, a low monthly payment isn’t always the best deal. Carefully review your loan terms to know what you’re getting into to find the best loan for you.
Many people with lower credit scores choose the longest loan terms because it means lower monthly payments. If you need a very long loan term, consider lowering your car budget so you’re not saddled with more interest.
Research Your Lender
Unfortunately, scammers often target people with low credit. Especially if you’re using a nontraditional lender, research to ensure your offer is legitimate.
Some red flags to look out for in a potential lender include:
Requesting a nonconventional form of payment (e.g., gift card)
Take Time To Build Credit
Sometimes, it’s unavoidable that you need to take some time to rebuild your credit before buying a car. When you have a low credit score, can’t afford a down payment, or can’t afford to pay cash, you might want to work on your credit score and revisit purchasing a car later.
In the meantime, you can do the following to improve your score:
Some people are relatively high earners who have a lingering low credit score from the past. In this case, you can offer to pay part or all of the car off in cash. While securing a loan can be tricky with a low credit score, purchasing a car with cash is relatively easy, especially if it’s used.
Explore Options at Your Bank
If you have bad credit, check if your primary bank offers car loans. Many times, banks will lower some requirements for a loan if you have a relationship with that bank. You have the best chance of securing a car loan from your bank if you’ve used them for a while and have a reliable past making payments.
FAQ
Do you have some questions about getting a car loan with bad credit? You’re not alone. Check out answers to people’s most common questions when trying to secure an auto loan.
What Credit Score Is Too Low for a Car Loan?
There’s no minimum credit score to get a car loan, but with a lower score, you might have a harder time finding a lender. To improve your chances of getting preapproved with a low credit score, save up for a down payment or take steps to improve your credit score.
Will I Get Denied a Car Loan with Bad Credit?
With any credit score, it’s possible to be denied a car loan. Many factors go into whether a lender will offer you a loan, including:
Payment history
Outstanding debts
Credit score
Employment status
Improving Your Credit Score
Building better financial habits takes time—it’s hard to be patient if your credit score gets in the way of big purchases like car loans or mortgages.
At Credit.com, we work hard to help everyday Americans secure financing and feel empowered to improve their credit score for financial success. Sign up for ExtraCredit today to work on your credit and build a better tomorrow.
If you’re in the mood for a fun and cheesy action movie circa the 90s, this list will guide you through a great 90s movie marathon. From corny 90s staples like ticking clocks and invincible heroes to the predictable inspirational speeches, it’s so bad it’s good.
1. Face/Off (1997)
Topping off the list, we have 1997’s Face/Off starring none other than corny movie kings John Travolta and Nicholas Cage. This movie has a respectable rating on IMDb of 7.3 and was nominated for an Oscar for Best Sound Editing.
The plot is certifiably camp: an FBI agent gets a facial transplant to take on the identity of a criminal mastermind that killed his son to stop a terrorist attack. However, the killer whose face he’s transplanting wakes up too soon and is not too thrilled about it.
2. True Lies (1994)
Numerous cinephiles boast about how good True Lies is and recommend it. This 1994 film, directed by James Cameron, stars Arnold Schwarzenegger and Jamie Lee Curtis.
A fearless secret agent who takes down terrorists deals with inner turmoil when he discovers his wife could be having an affair with a used-car salesman while he’s dealing with the takedown of a terrorist who is trying to get nukes into the country.
3. Demolition Man (1993)
Several film enthusiasts insist Demolition Man should be on your corny 90s movie list. It came out in 1993 and stars Sylvester Stallone and Wesley Snipes in a tale about a police officer who has been in suspended animation (frozen) for several years. Now that society is crime-free, he is unfrozen to pursue a nemesis of his that is wreaking havoc on the law-abiding society.
4. Last Action Hero (1993)
One claims Last Action Hero is one of the best answers to a request for corny 90s action movies. Starring the ubiquitous Arnold Schwarzenegger, this 1993 action flick is about how a young movie buff is transported into the cinematic universe of his favorite action movie character thanks to a magic ticket.
5. Point Break (1991)
Point Break was a coveted corny 90s classic on many users’ lists. The movie stars Keanu Reeves and Patrick Swayze, but Reeves’ performance is famously ridiculed in this film. It’s about an FBI agent (Reeves) who infiltrates a group of surfers involved in several bank robberies.
As he befriends the leader of the group Bodhi (Swayze), things get complicated. Despite being directed by Kathryn Bigelow, one of only three women to win an Oscar for Best Director, it’s often lambasted as a terrible film with a cult following. Rated 7.2 on IMDb, it must be a sizeable cult.
6. The Fifth Element (1997)
A film lover listed a bunch of movies, including The Fifth Element, one of my favorites. This is peak Bruce Willis cinema; everyone is at the top of their game. So you have Gary Oldman as the cartoonish villain, Milla Jovovich as the supremely powerful alien in human form with strange orange hair, and Bruce Willis as the former special forces agent who saves the day.
In the future, a cab driver (Willis) accidentally becomes the central target in a search for a legendary cosmic weapon. This 1997 film is clearly loved by most, as it’s rated 7.6 on IMDb.
7. Batman Returns (1992)
Tim Burton’s 1992 Batman Returns is a sequel to Batman. It explores iconic characters like The Penguin, played by Danny Devito, and Catwoman, played by Michelle Pfeiffer, and of course, Michael Keaton stars as Batman. It was nominated for 2 Oscars and has earned a 7.1 rating on IMDb, so corny or not, it’s cemented its way into cinema history as an iconic Batman film.
8. The Rock (1996)
The Rock is a 1996 film that users were most excited about, with one person referring to it as “arguably the pinnacle of the action genre.” It’s rated 7.4 on IMDb and directed by Michael Bay.
A renegade general, played by Ed Harris, threatens the government to launch rockets on San Francisco. Still, a mild-mannered chemist and former convict, played by Sean Connery and Nicholas Cage, team up to stop him.
9. Independence Day (1996)
Independence Day, which landed among a few individual’s lists, is a 90s classic starring Will Smith. This 1996 film is about humankind’s willpower to survive an attack on Earth by an alien race. This huge blockbuster film grossed over $817 million worldwide and has a 7 rating on IMDb.
10. Total Recall (1990)
Yet another Arnold Schwarzenegger film makes this list, with 1990’s Total Recall which is beloved much more than its 2012 remake. Rated 7.5 on IMDb, it’s about a man who has had false memories about living on Mars implanted into his brain, and the people responsible are trying to have him killed.
Source: Reddit.
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites