The statistics speak for themselves: About 80 percent of people have errors on their credit reports and 50 percent have credit scores below 720
Los Angeles, CA (PRWEB) September 2, 2009
With the government's popular "Cash for Clunkers" program now closed, many prospective car buyers may feel they missed the boat. But credit guru Philip Tirone says all is not lost--even for those with low credit scores.
He says more than half the people who owned eligible "clunkers" were unable to qualify for Cash for Clunkers due to their credit scores.
"The statistics speak for themselves: About 80 percent of people have errors on their credit reports and 50 percent have credit scores below 720," Tirone says. "Add in the tightened lending restrictions, and the program failed about 50 percent of the people who applied."
So what can people do when their gas-guzzling lemons are breaking down, but the banks are turning them away? "This is the top question people want answered when downloading my ebook," he says. "I tell prospective car buyers to make themselves more appealing to banks by raising their credit scores."
He suggests these three immediate credit-building techniques:
- First, pull your credit report and report errors to the credit bureaus, particularly limits that are being reported incorrectly.
- Second, make sure the debt you are carrying on your credit cards is in proportion to the limits you have--meaning you should not have one card maxed out, and nothing on another card.
•Finally, if you are relatively young and have little credit, you should find immediate family members who can add you as an authorized user to existing credit cards with positive histories.
"By taking just these three steps, prospective car buyers could see their scores jump 50 or 60 points," says Tirone.
He adds one more word of advice for credit-challenged clunker owners who are looking to buy a new car, even if the dealer they are talking to is saying no: "One of the biggest mistakes people make is buying and financing their car in the same location," says Tirone. "Shop around. Many smaller credit unions and local banks have taken less of a hit than their big bank counterparts. As a result, they are better positioned to lend money than the banks associated with many dealerships."
About Philip Tirone:
Nationally recognized credit guru Phil Tirone offers a low-cost, self-help credit repair program at http://www.720CreditScore.com. He and his programs have been featured in the Los Angeles Times, Wall Street Journal, Woman's World Magazine, San Francisco Chronicle, Bottom Line Magazine, and the New York Times bestseller "Secrets of the Young & Successful." Recognized as a thought leader in the credit industry, Tirone speaks nationwide on the problems with our credit-scoring system and how it erroneously burdens America. He created the 7 Steps to a 720® Credit Score to expose the rules of the credit game and to create a way for countless Americans to increase their credit scores and save hundreds, sometimes thousands, of dollars in interest payments.