I was flying down the highway with my friends whom had just touched down in my city, headed to the other airport to pick up another when I saw smoke coming from the hood of my car. Before I could slow down and pull to the shoulder, the smoked flooded the inside of the car through the vents. And that was just the beginning of the longest pain in the ass of my life.
My first car, a 2012 Rio I nicknamed Storm, had given up on me already. I only had her for two years and during that time she was pretty stable, so when the mechanic told me my engine was blown, I damn near boiled over — just like all the chemicals did that night my car blew up.
Saying I wasn’t prepared mentally or financially was an understatement. I was growing irritated at the job I was working at the time, and wasn’t getting paid enough to really put money into repairing that car or getting a new one. I had previously made up my mind that I was going to wait until I can afford to get a new car that I really wanted but apparently that didn’t matter to Storm. She was done.
Well, fast-forward to the light at the end of the tunnel, I proved my claim with my insurance company and my GAP insurance took it from there. I was cleared of that car title and the loan, and had saved a nice little nest to get some better wheels. So off to the dealership I went.
The process wasn’t easy, especially without having my mom here for guidance, but it wasn’t necessarily hard either. It was actually exciting –like who doesn’t like shopping, or shiny new things they can call their own?
It’s basically a lot of decision making to get to the ultimate decision of signing your life away on those papers. So to help keep y’all from getting swindled by some handsome, fast-talking car salesman, I made a list of the things you need to know before you go to the dealership or car lot.
- Your financial status ie budget, credit score, etc.
- Buy, finance, or lease?
- Used, new, or certified pre-owned?
- Make, model (or at least body type), and year range
- Your must-haves ie. safety features, phone connection, sunroof, leather seats, etc.
After putting on my big girl pants and going through my checklist, I ended up with Mickey, my little red 2017 Mazda3. Safe to say I don’t miss Storm much these days.
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I got my first credit card in college. Initially I never swiped the thing because I was afraid of being like those women on the Tyra Show who were twenty-three and $10k in debt from senselessly shopping. But then the credit card companies started sending me more and more cards with greater limits, and of course I couldn’t say no. The more credit they wanted to give me the better for my credit right?
Right.
But oh how easy it was to ruin that good credit.
I basically felt like my life was over when I graduated from college and spent a few months being unemployed. Creditors called me asking for their money and all I could think about was Patrick in that SpongeBob meme saying, “I only got $3.” I did not have the means to pay back the debt I accrued and everyday I watched my credit score plummet. I was depr
essed.
So instead of moping about what I couldn’t pay, I reached out to a free financial advisor in my area and spoke with them for about an hour on how to get my credit back into shape. To my surprise, she assured me my credit wasn’t as bad as I thought but it did need a little repairing.
She gave me several tips to help me get back on track that I want to share with you in case you ever find yourself in a credit crunch:
- If you have missed a credit card payment or two and are going through a financial hardship it is best to contact your credit card company. They will work with you. But in order for them to help you—you have to help yourself.
- You have roughly 120 days before your account is sent to collections. One missed payment is 30 days. Two is 60. Three is 90 and so on. If you are able to make just one minimum payment on your 119th day this will essentially give you thirty more days before your account is reported to a collections agency. Meaning you will be at the 90 days past due mark instead of 120. I do not recommend relying on this but I did one time and it avoided collections. We don’t like collections.
- With credit cards you should try not to go over 30 percent utilization. Meaning if your credit card has a max balance of $2,000 it is best to keep your card balance at or around $600.
- If I am ready to open a new card, before I let a sales representative do a hard credit check on my account I ask them the average credit score of someone being accepted for a card. If it is higher than my credit score I simply do not apply for the card. Hard credit inquiries, (if you have too many) can negatively affect your score. Average is about 3-4 inquiries.
- Once your credit begins to get back on track, check it periodically to make sure everything is accurate. Your payments are up to date, that everything looks right, and the things you have paid off are no longer reflected on your report. Make sure this is reflective across all three credit bureaus: TransUnion, Equifax and Experian.
If you are looking for a way to check all of your credit information check Credit Karma.This website gives you details about everything discussed. Happy credit crunching!
Skimpy 