We do mean wheels attached to a motor, that is. Okay, so school just got out and you just graduated. You were expecting a brand new car presented to you at your party, instead you got a nice watch and a bunch of cards wishing you well in the future. You dare not say anything to mom or dad, ‘cause you didn’t want to hear about their major contribution to your education and your future. Still no car. How does someone get a car right after graduation with no job?

Answer: Auto loan. Car payments.

While you were studying and worrying about what to order besides pizza, some of your fellow classmates were taking advantage of those credit card offers that flourish during your orientation when applying for classes. The four years attending school was enough time to create what we call, credit history.

Use credit wisely. Now, I understand you say and wish someone told you this earlier. Because it’s a lot easier to make payments as a single person with little income than having a significant other to help you spend your little income post-graduation. Is it too late? Answer, no. It will take a few months to make history or in this case, credit history but make good history. Start off with a small credit card balance, make sure you make payments before Due Date and pay more than the minimum. Do this consistently. Even one late day may incur a huge additional late fine and this may be even several times your minimum payment.

While you are “establishing credit”, check out automakers websites and other car sites that provide information on what’s new and how much. Most car sites offer lots of ads representing Deals of the Week. Car loans or specials on leasing can be found but finding one that fits you and your income takes time. Edmunds.com offers many of these features as well as other cars sites like Car.com. They show new models and upcoming models. Inside description of cars, make sure you enter the word “incentive” purchasing. Many manufacturers offer special pricing, incentives or huge rebates for certain cars depending on their promotion or overstock. Rebate incentives is like getting an envelope of cash in thousands of dollars. Look further and you may want to fore go the incentive and just apply for the low finance rate; and even luckier, you may be able to accept both.

When considering purchasing a car, find one that meets your needs rather than what may look great on you. Get a car you can afford. Don’t forget there will be other expenses besides car payments, down payment or just gas. There are other considerations that will save you money. Good credit is a huge consideration as not only will your finance interest rate be lower than a person with a less than good credit but car insurance will be affected as well. Remember, if you finance the car and not buy outright, collision and comprehensive car insurance is mandatory for the lien holder of your loan. This may add an additional hundred bucks each month for new car owners and new cars.

And you thought driving your mom and dad’s car was free. Thank them next time you pay the bills as they gave you a free ride until now.

Answer, no. By law, Americans are entitled to one free credit report within a 12 (twelve) month period from each of the three credit bureaus but are not entitled to receive a free credit score. The three major credit bureaus are Experian, TransUnion and Equifax.

A credit score is a number between 501-990. This credit score is a number based on a statistical analysis derived form a person’s credit file history and the number represents the creditworthiness of this person. Keep in mind, that credit bureaus use FICO scores and they may be represented in lower numbers. The 501-990 scores are known as Vantage scores and used often for consumer debt, whereas FICO scores in lower numbers are used by mortgage lenders. Some financial institutions may also have their own rendition of credit scoring but its becoming more uncommon as financial institutions support a stable economy and standardizing consumer methods.

In general, this credit score assists in determining whether this person will pay their bills.

Believe it or not, you income is not considered by the major credit bureaus when calculating your credit score. Your history of paying bills on time, whether paying more than the minimum and how many bills are the main components of viewing historical credit history, not how much money you make.

All three major credit bureaus offer a subscription service to check credit scores intermittently during the year. All three major credit bureaus also offer a one-time only credit score service. Subscribing annually assists in reviewing your credit score and assists in raising or maintaining your former credit score.

Under the Fair Credit Reporting Act (FCRA), a consumer is entitled to a free credit report (but not a free credit score) within 60 days of any adverse action (e.g. being denied credit, or receiving substandard credit terms from a lender) taken as a result of their credit rating.
Only recently are credit scores taking a more important role in our daily financial lives. With integration of immediate responses via the internet and the ability to run analytical factors, more often times than not, credit scores are more apparent when renting an apartment or even securing homeowner’s or auto insurance.

Best advice for consumers? Pay attention to your credit score.

With today’s economy, it’s understandable that circumstances may make it difficult to keep paying as you would like and its always wise, to pick up the phone and make arrangements with your lenders. They can’t be aware of your situation unless they hear from you. Otherwise, pay your bills on time, pay more than the minimum and keep your debt as minimal as possible.