FAST AND EASY WAY TO DEVELOP CREDIT HISTORY, AND WHAT ASPECTS BANKS CONSIDER BEFORE DETERMINING WHETHER TO PROVIDE A LEASE. PART 2

RUS version here

We continue our discussion about how to buy your first car and efficiently build your credit history. In the previous issue, Dmitry Chernyak, the owner of the car brokerage company PANAUTO MIAMI, laid out all the necessary steps and options for purchasing a car.

There was only one way left uncovered - leasing without SSN (premium brands).

We do offer a NO SSN LEASE program for those who can't wait to receive their Social Security Number, but have enough money to pay down from $10,000 to $12,000 and want to drive a premium class car. With this program, people can lease the Mercedes-Benz CLA for $10,000-12,000 down payment, and the rest is split up into monthly payments. Any model can be leased under this program. It may even be an S-Class vehicle depending on the down payment.

Land Rover, Jaguar, and Infiniti are available through similar programs, but with slightly different approval criteria. The American car market has a variety of car brands and models that have different requirements. Our experts are always happy to analyze your case and determine what would be the most profitable option for your situation!

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According to Dmitry, it is absolutely critical for car lease holders to carry out the following actions:

• - monitor your credit card usage;
• - do not allow late payments;
• - avoid recklessly applying for new loans or shopping credit cards, such as those offered by Macys, Nordstrom, and Wallmart, etc;
• - do not close the oldest credit cards (your oldest credit card is the beginning of your credit history, if you close it, the history period decreases until the next card is opened).

In the United States, banks place great importance on the following factors:

• - the credit history, the older the better;
• - the age of the very first loan (do not close the very first credit card - keep it in your nightstand, have auto payments set up so you do not forget to pay the annual fee, the more you pay off each month - the better);
• - no derogatory accounts like late payments or collections;
• - your loan inquiries (every time you apply for a loan or credit card, a notification is sent to credit bureaus);
• - do not use more than 30% of your credit card limit
• - use up to 30% of the credit card amount! You cannot not use it. Credit cards should be used and show adequate amounts of transactions and payments in a timely manner.

Despite what many people think, a credit score is not a measure of your credit history. One "secured credit card" can raise your credit score to 730 in half a year. All of the factors listed above are important. Prior car loans play an important role in deciding on a car loan or leasing. The chances of obtaining a favorable loan are greatly increased. Since you have never had a car on credit before, you fall into the category of "first-time buyers" by banks, which prevents you from getting car leasing or loans with minimum interest rates. You should not be surprised if you see a credit score of 730 on CredirKarma, yet you are denied credit everywhere, and, at the same time, each new inquiry further aggravates your situation. You should only submit the properly prepared package of documents to banks that have appropriate programs at that time for your case.

Additionally, Dmitry gave our readers some professional advices:

• - Monitor your credit history constantly by opening an account at www.creditkarma.com. Checking your credit history on this site is not considered an inquiry and will not affect your credit in any way, although it is not a 100% accurate source to check your "credit score" (namely the numbers);
• - Install the BillGuard mobile app (available for iPhone and Android), which automatically monitors all debits from your credit cards and checking accounts and reminds you to make payments;
• - Register your own company. The fees for formation and maintenance are very low, but believe me, it will come in handy later!

Finally, Dmitry Chernyak clarified that this vision is based on his personal experiences and the experiences of hundreds of his clients.

Read first part of the article here