Bankruptcy Law, Credit, Timothy Kingcade Posts

Auto Lenders Pursue a Surprising New Type of Consumer

A recent report in the Wall Street Journal has shown that auto lenders are pursuing an unlikely growth market: people who have fallen behind on their mortgages and those with less than sterling credit. In the first three quarters of 2011, auto lenders issued roughly 205,000 loans to borrowers whose credit records showed they had been at least 60 days past due on their mortgage or experienced a foreclosure, up from roughly 80,000 during the same period in 2006.
The trend seems surprising, but there are reasons the auto industry is embracing the subprime category (individuals with a credit score below 619). For one the industry is seeing fewer bad auto loans; the amount of repossessions has actually fallen in recent years. Also, the recession has lead to more people choosing to keep to date on their credit card payments and car loans as opposed to making their mortgage payments on time. The auto industry also realizes this move opens the market to significantly more prospects. Today, more than half of all consumers fall into non-prime, subprime and deep subprime categories. These individuals carry a credit score below 679.
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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at


Five Mistakes that can Ruin your Credit

credit-scoreYour credit score is one of the most vital parts of your financial life. Many people think that keeping your credit score in good standing is only important when it comes to being approved for a loan or credit card. However, it goes far beyond that. Your credit score can affect everything from insurance premiums to employment opportunities.
Below are a few mistakes that can cost you some major points:
1.) Closing old credit cards. It’s easy to assume that if you pay off your bills, cut up your credit cards and stop spending you will magically have good credit. However, good credit is built over time and with smart spending habits. When a credit report is run, points are given for the cards you have carried balances on the longest. Be strong and resist the urge to make large purchases on these cards, if you cannot afford to pay the balances off in full each month.
2.) Using up all your available credit. If a credit card company grants you a line of $5000, you should only use 20% of it. This would allow you to spend no more than $1000 on that particular card. Because the credit card companies report your balances to the credit bureaus monthly, you want the balances to be as low as possible. According to My Credit Group, the balance-to-limit ratio will ultimately have a huge effect on your credit score.
3.) Applying for too much credit. If you are filling out application after application because you are strapped for cash, keep in mind that credit card companies note all of these requests and consider them a red flag. Let there be 6 months between each credit card or loan application.
4.) Not paying late fees. When it comes to late fees, pay up. The longer you wait, the worse it looks on your credit report. Once you acquire a late fee charge, your inability to pay shows up on your credit report.
5.) Moving. Lastly, for those of you who are moving to a new location make sure you change your billing address immediately. Bills can become lost in the mail and even end up going to your old address. This can cause you to miss your payment due date, get stuck with late fees, and rack up additional charges. Paying all of your bills online can help avoid this.
Remember, it is possible to have a good credit score if you discipline yourself to spend wisely. Know your options when it comes to credit and use them to your advantage! For more information on ways to improve your credit score, visit You can also find useful consumer information on the Kingcade & Garcia, P.A. Web site at
-Bankruptcy Attorney Timothy Kingcade