Toyota Financial Services Moving to Plano, Texas

Toyota Financial Services, based in Torrance, California, is all set to merge headquarters along with Toyota Motor Sales, U.S.A., Toyota Motor Engineering & Manufacturing North America, and Toyota Motor North America in Plano, Texas.

The company will offer relocation and retention packages to approximately 1,000 of it’s employees “in good standing” at the California headquarters. 

In response to the anticipated $300 million investment Toyota will make in the state and the final 4,000 strong employee force, the state of Texas has offered Toyota a $40 million investment through the Texas Enterprise Fund (TEF). 

Toyota has stated that the move is not motivated by tax incentives, but rather a desire to consolidate with the rest of the company.

TFS associates in regional, sales offices as well as service centers throughout California, and Toyota Financial Savings Bank in Henderson, NV will not relocate. The majority of relocations is expected to take place in 2017, by which time the new headquarters will be fully operational.

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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.

Gas And Oil Company Subsidies Outweigh Corporate Income Tax?

Some actions of the big oil and gas companies have been getting some attention of late. We all have to pay our due in taxes, so the question is why do the oil and gas companies think they don’t? Over the past few years it has come into light that these companies have been receiving subsidies. The numbers are staggering, given the amount of money they take in yearly verses the amount they actually pay in their taxes. In fact, these companies ended up paying around $32 million in taxes, when, given the 35% corporate income tax rate, they should have paid around $60 billion! 

It is interesting to know that the rest of tax payers continue to pay and do what we have to do, and yet these big companies do not. They have found ways to avoid having to pay what is due. Getting subsidies, and working their way around the government. I believe this should grab the attention of our government and show them it is not right they take so much, and give less back. There is no reason they should be allowed to take advantage in such a way to make the rest of us pay.

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Human Error at Fault in 90% of Road Accidents

This article discusses the large percentage of car accidents (90% to be exact) that are actually caused by human error. This means that a large portion of car accidents are due to the drivers lack of driving ability or failure to pay attention. This problem calls for a larger push to increase the performance abilities of drivers in order to make drivers more aware of their environment. The article goes on to back up the severity of these claims by supporting its argument with statistical data. One example of this data is that, according to the chairman of the International Organization for Road Accident Prevention, 1.3 million deaths occur internationally every year due to car accidents on the road. Additionally, the number of deaths from traffic accidents is projected to rise 67% from 2000 to 2020, and specifically 144% in the Southeast Asia. The article stresses that since this is a man-made problem, it is solvable and that if enough initiative and action is taken, then we can significantly reduce the likelihood of accidents.

Read the full article here:

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.