How To Save Money For Your New Car

When you’re looking to get your first car, it can be incredibly difficult to save up for it. This is because people under a certain age usually don’t have access to steady incomes and budgets where they can save. However, if you’re looking to get your first car without breaking the bank, then this list will help you with just that.

The first thing you should consider when you’re looking to step up your savings is how much money you have access to. When you’re looking to get your first car, it’s a good idea to get a job so that you can not only pay for the car outright, but also to make sure that you can consistently pay for gas and insurance. This is especially important for new drivers, as insurance rates can be higher for younger people.

Another good thing to think about when you’re looking to step up your savings is to understand exactly what you need and where to get it from. If you need a car to commute with, you’re going to want to go for a car with good gas mileage. Even if a car with good gas mileage is a little bit more expensive, it’s better to opt for that one because you will be paying more in the future on a car with low gas mileage.

When you’re looking for your first car, it’s also an excellent idea to look for a used car. Not only because you don’t have the experience to make sure that you won’t ruin it, but also because it’s cheaper, and at times just far more financially viable. You should also budget yourself so that you can more easily afford a car. This means visiting places like Ticketmaster and looking for deals on entertainment instead of not thinking of where your money is going.

Can Being An Authorized User Really Boost Your Credit Score?

One of the simplest ways to boost a person’s credit score is to be added as an authorized user on the credit card account of a responsible card holder. Responsible means someone who has never had a late payment, over-the-limit fee, or returned check fee on their account. Preferably, the balance on the account will be less than 25 percent of the credit limit as well. It is simple if…well, it isn’t so simple. Here are a few things that you and the cardholder may want to consider before becoming an authorized user.

Things to Consider Before “Piggybacking” on Another’s Credit

You will only receive a boost to your credit score if a separate card is issued in your name.

The primary cardholder is the only one who will be responsible for paying back the balance as far as the credit card issuer is concerned. Since the additional card will be mailed to the primary cardholder’s address, if you have doubts about the responsibility of the authorized user, do not give them the card. That way they can boost their score and you do not have any risk to worry about.

FICO does look at authorized users when building a credit score, but lenders may not. So, after your score has gained a little ground, you may want to seek a credit card account of your own. Lenders recognize all credit card accounts if they are in your name.

Some credit repair companies will try to convince you that ”piggybacking” on a stranger’s account is a good idea if you cannot find anyone willing to add you as an authorized user. FICO’s website says this about piggybacking:

”To protect lenders and honest consumers, the FICO 8 formula substantially reduces any benefit of so-called tradeline renting. That’s a credit repair practice that entices consumers into being added to a stranger’s credit account in order to misrepresent their credit risk to lenders.”

Essentially, FICO will ignore a piggyback account.

Keep in mind that every habit of the primary cardholder becomes your habit in the eyes of the credit reporting agencies. Their missed payment is your missed payment, etc. Still, if you become an authorized user on the credit card account of a responsible person, you will see a boost to your credit score. That boost may not be significant enough to help you get a car loan or a mortgage, but it should be enough to help you get a credit card account of your own.

What is the Maximum Rate for a Car Loan in Texas?

According to the Office of the Attorney General for the State of Texas the maximum rate for a car loan in Texas is 18 percent. That rate is usually reserved for a borrower who has bad credit. Let’s have a look at what an interest rate of 18 percent does to a loan balance.

Who Faces the Highest Rates?

Usually, the borrowers who are facing the highest interest rates are those who have bad credit. Not just bad credit in general, but have been irresponsible with previous car loans. The major providers of credit scores have targeted scores…a specific score for a mortgage, another for credit cards, and one for auto loans. If you have a history of late payments or a repossession, your auto specific credit score could be as much as 120 points lower than your general credit score.

Total Interest Paid

The average cost of a new car in the United States is $30,000. If you have to pay the maximum rate of 18 percent on that amount for just six years you will pay a total of $19,264.83 in interest. Even if you choose to buy an less expensive model, say a Kia Rio, that retails for around $15,000 you will pay $9,632.41 in total interest over the life of a six year loan.

What Can Be Done

You have two options if you are facing an interest rate that seems too high. First, you can improve your credit. You cannot go back and undo past mistakes, but you can let them fade. Late payments and repossession may stay on your credit report for seven years, but their impact on your credit score lessens over time. While you are waiting for these past infractions to fade, why not get a credit card? Even if you have to get a secured card, your score will improve if you make your payments on time and keep your balance under thirty percent of the credit limit.

Your second option is to shop around for a better loan offer. Granted, if you have bad credit, you will have to skip large banks and some credit unions. That does not mean you have to accept the first offer you get. There are many specialty lenders who are willing to offer you a loan. Many of them operate online only, making your search even easier. Go here to apply online–today!

What Are The Best Used Car Dealers in Houston?

Buying a used car can be a tricky experience. Everyone is sure that the dealership is out to stick them with a lemon of some kind or another. That makes the reputation of the dealership all the more important. Here at Longhorn Auto Finance, we set out to discover which Houston-area dealers had the happiest clients last year. We evaluated reviews from leading sources such as Yelp and BBB, in order to provide an objective viewpoint. Here are the three best used car dealers in the Houston area based on customer feedback.

South Loop Hyundai
8811 the Lakes at 610 Drive
Houston, TX 77054

Expo Motor Cars
11655 North Fwy
Houston, TX 77060

AutoNation Family of Dealerships
Multiple locations along the Gulf Fwy.

Each of these dealerships has received multiple positive reviews from customers in the last 12 months. Keep in mind that a positive review is no guarantee of your experience. Be sure to inspect the car you are interested in. If you do not know what to look for, take the vehicle to an independent mechanic.

Used Car Budgeting: Your Responsibility

Although these dealers are known for their happy customers, the responsibility to budget appropriately for your new vehicle rests largely–if not solely–on your own shoulders. Spending more than you should places undue strain on your finances, and causes you stress–and who needs more of that?

A good rule of thumb is to purchase a vehicle that costs a certain percentage of your annual income. For instance, spending 15-25% of what you make in a year on a car is reasonable. Spending up to 30% is probably the maximum you should invest. If you are financing your vehicle, you want your monthly payments to account for no more than 10% of your monthly income, and you want to keep your finance term as short as possible. Anything less than 60 months is sensible. If you want to learn more about financing a car in Houston, go here.

If you follow these guidelines, you’ll be happy with your purchase–and so will your bank account.

How to Tell if a Car is Stolen?

Are in the market for a used car? If you are, and especially if you are planning to purchase your vehicle from a private seller, then you need to check whether it’s stolen or not.

Checking with the National Insurance Crime Bureau

Of course, there is no way to definitively tell whether a car is stolen or not just by looking at it. Fortunately, you do not necessarily have to sell out a lot of money for a vehicle history report. The insurance companies around the country have gotten together and created a database of vehicles that have been stolen, but not recovered. If you go to the National Insurance Crime Bureau website (, you can enter the VIN of any vehicle for a free report. BE SURE TO READ THE TERMS OF SERVICE CAREFULLY. The site also allows you to see if the vehicle has ever had a salvage title. The site says that:

”NICB’s VINCheck is a service provided to the public to assist in determining if a vehicle has been reported as stolen, but not recovered, or has been reported as a salvage vehicle by cooperating NICB members.”

That statement reveals the one weakness of the site… its database only includes titles reported by cooperating members. While that is only a slight weakness, it still leaves the possibility that a few vehicles may slip through the cracks. Another reliable site is’s stolen car search. This is not a government affiliated site, but it has been around for a long time and there is a lot of good information available for free.

Red Flags That May Indicate a Stolen Vehicle

While there is no way to tell if a car is stolen just by looking at it, there are a few signs that should tip you off that there is something fishy about a car, though.

  • The VIN is altered or disguised in any way.
  • The VIN does not match the title.
  • The title has been lost.
  • The price is absurdly low.
  • The seller only accepts cash, but is not willing to let you seek financing.
  • The seller is nervous at all times and seems in a great hurry to sell.
  • The seller is not willing to accompany you to a notary public to transfer the title.

Any of these should raise a flag for you. You may have the “fever” for the car you’re considering, but you have to keep your wits about you and be prudent, especially in this era of Craigslist scams. It may turn out to be a false negative, but you have to be sure before spending your hard-earned cash.