As of 2015 the city of Chicago had a population of 2,695,598 and it is split almost evenly between male and female residents. The same is not true when it comes to the city’s racial makeup, which is also responsible for some of its problems. 44 percent of the population is Caucasian, with African Americans accounting for 32 percent. Hispanics make up 28 percent of the population, while only 5 percent of residents are of Asian descent. The majority of the city’s residents are also over the age of 18, and a quarter of the population currently owns their own home.

and a 2011 census shows that many former downtown residents are choosing to move out of the city’s center. There are several reasons for this shift in where residents want to live, which include the high percentage of homes that are mortgage free in Hodgkins and a typically short work commute in Northlake and Rosemont. For residents who cannot afford the monthly payments that come with an auto loan or have a problem with their credit that prevents them from being approved, a commute that is typically less than 60 minutes is a welcome advantage.

Demographics also show that the majority of residents who are employed in “Chicagoland” or downtown only have one job, and this might be partially responsible for their low credit scores. Residents have an average credit score of 642 and while this isn’t terrible, it is still in the subprime rate. The city was ranked 2,137^th out of 2,570, and even though this puts Chicago well above some of the lower ranked areas it is still dangerously low. With low credit ratings and poor histories it’s not surprising that the Buy Here Pay Here lots are enjoying a steady and profitable business.

http://www.chicagotribune.com/business/ct-credit-scores-illinois-chicago-0112-biz-20160111-story.html

Chicago is a beautiful city with an absolutely stunning skyline, but this does come at a high cost. When annual average incomes are compared to the high cost of living, it is easy to see why credit scores are consistently below state and national averages. The average annual income for residents is listed at $47,408, which isn’t bad until the cost of living is factored in. With an average net monthly salary around $3,299.24 and rent for a one bedroom apartment at $1,038.79 and up it can be difficult for residents to make ends meet.

This doesn’t factor in the additional cost for food and utilities, along with clothing and other basic necessities. By the time groceries are purchased, and bills are paid many residents find themselves living off of their high interest credit cards. Due to the high interest rates on these credit cards many residents find that they are not able to pay off their balances. The situation can get even worse if any unexpected expenses happen to come up. This and other financial issues are making it extremely difficult for a large number of residents to be approved for an auto loan through a bank or credit union,

According to the interactive website for the United States Bankruptcy Court for the Northern District of Illinois on May 3^rd, 2016 there were 81 people who filed for Chapter 7 and 61 claimed Chapter 13. The one thing all of these people have in common is that they all live in the Windy City. These numbers are nothing new for Chicago. On August 19^th, 2014 there were 61 Chapter 7 claims and 40 people filed for Chapter 13.

Unlike some cities where there is one main event that resulted in financial problems for many residents, there are several smaller causes in Chicago. On a whole the city is not experiencing financial difficulties, and some of the wealthiest people in the country call it home. This is particularly true when you are in Kenilworth and other “tony” neighborhoods. What is causing residents to declare bankruptcy in order to protect what little they have left ranges from extremely high credit card debt, to unpaid medical bills and rising healthcare costs. Some residents are trying to live above their pay scale, while others are simply trying to make ends meet on salaries well below the national average. All of this results in black marks on credit histories and extremely low FICO scores.

Once your credit scores reach a certain number, often times the only place that is willing to offer you an auto loan is a Buy Here Pay Here lot. While these car dealerships will charge a higher interest rate that can be difficult to pay off in a timely manner, often they are the only ones taking a chance on someone that has declared bankruptcy in the past several years.

https://tdi.ilnb.uscourts.gov/wwwroot/Statistics/

The unemployment rate is up to 8.5 percent which is above the national averages by 43 percent. The poverty level is also higher at 22.1 percent, compared to the nation’s at 14.9 percent. It should be noted that the poverty level will vary in some of the city’s numerous suburbs. For example 33 percent of the residents in Hodgkins are living in mortgage free homes which means there is one less expensive bill to pay, and the quality of living is significantly higher than someone living downtown.

With high unemployment rates and poverty levels it can be difficult for residents to be able to afford everything they need. A gallon of milk is up to $3.79, and a one bedroom apartment in the city center or in an outlying neighborhood rents for over $1,000 a month. When all of the average monthly expenses are added together, including any credit card debt many residents find themselves picking and choosing which bills to pay. Eventually the missed payments and defaulted loans will show up on your credit history, which is typically the first thing potential lenders look at before approving your loan application.

It the FICO score is below 630 residents who need a new vehicle to get to work or find a new means of employment often find that they need to go to the car dealership. While vehicles loans are typically approved at the Buy Here Pay Here lots, it is still important to remember that it will come with a higher than average interest rate.

http://www.areavibes.com/chicago-il/employment/

In 2014 the number of subprime borrowers who had their vehicles repossessed due to failure to make their payments rose an astounding 70.2 percent nationwide. While financial institutions expected the number of vehicle repossessions to increase as the number of automobiles sold also rose, no one expected it to be this high. Without a vehicle many Chicagoans find that it is almost impossible to make it to work and this can eventually affect the unemployment rate, and the poverty level.

When a vehicle is repossessed it can stay on a person’s credit history anywhere from seven to ten years, according to Experian. Having a repossession on your credit report will also make it difficult to be approved for another auto loan by a traditional lending institution. Once again this can make it extremely difficult to get to work, or to even look for a job that pays a salary high enough that it is possible to repay the loan on time. There is hope though at a Buy Here Pay Here lot where a subprime auto loan might be the only option left after a vehicle has been repossessed.

Chicago has been in financial trouble for years and this is not just due to the housing market crash in 2008, though that does play a role in some of the recent problems. The main problem for the city and many of its residents is simple overspending, and not planning ahead for the city’s and their financial future. Taxes were raised after the financial crisis in 2008 and it simply put an additional strain on residents, while still not being enough to help dig the city out of debt. Part of the reason is due to poor planning on the part of state and city leaders, and this has had a detrimental effect on resident’s income and financial security.

Because of this many residents are dealing with the problems that come with having bad credit and this includes difficulties being approved for auto loans. FICO scores that are in the subprime range are causing many banks and credit unions to turn down their loan applications, even when it is for a much needed car. With no other option available to them, many residents are turning for help from the numerous Buy Here Pay Here lots that are popping up across “Chicagoland”.

The main central business district (CBD) or simply downtown as native Chicago residents like to call it is going strong, and with a vacancy rate that was down to 12.4 percent at the end of 2015 compared to 12.8 percent in 2014 some analysts are hopeful that this will start creating more jobs for city residents. It is not only the CBD that is growing and prospering, but it is also spilling out into adjoining neighborhoods.

The River West or Fulton Market as it is often referred to by locals has also seen a 15.9 percent jump in growth that includes multifamily residences, hotels, restaurants and businesses. This is not only bringing jobs to the area, but it is also making it easier for employees to live closer to their work.

Businesses are moving inside the loop to the CBD and one of these is a second office for McDonald’s. With the addition of another office building for the fast food giant city leaders are hopeful that the additional revenue will soon start to help improve the financial problems in the area. With rents in the business districts comparable to those in New York and the city named as one of the top 5 emerging technology hubs in the country, there is no reason why there shouldn’t be additional revenue trickling back into the economy.

http://www.bizjournals.com/chicago/news/2016/01/14/whats-chicagos-hottest-office-submarket.html

When Chicago and its public transportation systems were compared to ones in other large cities like Boston and New York, some residents might be surprised to learn that it came in 6^th, according to a 2015 report. This even includes the vast majority of the neighborhoods outside of the Loop that make up “Chicagoland”. The score includes everything from average distance to the nearest transit stop, how often the train or bus visits the station, along with how many options residents have.

With a score slightly below 65, it seems that Chicago has a good transportation system that includes buses, Metra Rail systems and the well-known “L’, which should make it easy for residents to get around. For those living inside of the Loop getting downtown for work or play is rarely a problem since the buses and trains routinely stop at the stations every 30 minutes to pick up and drop off riders. Most downtown residents rarely have to walk more than half mile to reach a public transit station, which also makes it easy and convenient to get around even without a vehicle.

Unfortunately residents in “Chicagoland” do not the same options when it comes to public transportation. This can make it extremely difficult to get anywhere outside of the immediate area if you do not own a vehicle. In some instances neighborhoods that are only 3 or 4 miles outside of the downtown area have very limited options when it comes to public transportation, and for some outlying suburbs the only way to get around without a vehicle is by bike or taxi. This lack of public transportation outside of the CBD is another reason Buy Here Pay Here lots are becoming a common sight in suburban neighborhoods.

Downtown Chicago and almost all of its suburbs are extremely walkable according to recent data released by Redfin. As of 2015 the walkability score for the large three state area was a 78, with a bike score of 70. Downtown Chicago has several parks and green spaces that are designed to give residents and employees a chance to stretch their legs and get some fresh air, and a local favorite is Millennium Park. There is also Hyde Park along the lake front, which is also known for its spectacular views.

Inside the Loop there is also the Magnificent Mile which will take you along the Chicago River to Oak Street. Covering many of the exclusive shops, hotels and famous landmarks on Michigan Avenue this mile long route is one the residents and tourist enjoy. Outside of the Loop there are also plenty of places for residents to walk, and some of the trails will even take you past a Buy Here Pay Here lot.

While downtown and the metropolitan area are great for pleasure and fitness walking, if you need to run errands or make it to work on time a vehicle is a necessity. Not only is public transportation lacking outside the downtown area Chicago’s freezing winters, cold lake breezes and occasional rainy weather make walking impractical for anything other than a fun and healthy activity.

https://www.walkscore.com/IL/Chicago

With parts of the city spilling over into three states there are well over 100 school districts in Chicago and its suburbs, and the ratings range from “excellent” all the way down to “terrible”. Neighborhoods like Hodgkins which are classified as higher income have a school system with a rating of 10, while the Burnham School District has the lowest ranking and is located in the low income neighborhood of East Chicago. In general most of the top rated public schools are outside of the Loop.

Residents in Chicagoland are typically well educated, and many claim earnings well above the national average. The ability to afford higher property taxes ensures that more money is being put into the school system. Unfortunately the same is not true for majority of the inner city schools. Dropout rates are higher in city schools than they are in the suburbs, and without a high school education many teens find it difficult to be hired for anything other than minimum wage jobs. Adding to the problem is the fact that many high school graduates who leave the suburbs to attend college return to the same area to raise their own children.

While this ensures that the top rated schools will continue to lead in the rankings, it does little to help inner city students receive a higher quality education.

With its high cost of living and average annual salary lower than the national average it is good to know the there are plenty of city and state run programs that are designed to help residents in need. Whether it is help paying rent, groceries, clothes or assistance with utility bills, state and local governments have made sure that residents can easily get the help that they need. There are also programs designed to help residents get a job, which is always the first step to creating or repairing credit histories.

There is even help for tax relief, and this program will also help residents learn how to be financially responsible. Once you know how to proactively manage your credit and your finances you won’t always have to depend on a high interest subprime loan when you want to purchase a vehicle. Some of the numbers that residents often rely on when they are having problems making ends meet include.

Ladder Up (tax and financial help): (312) 466-0771

Employment Project: (773) 832-4080

http://www.cityofchicago.org/city/en/depts/other/provdrs/soi/svcs/apply_for_publicaid.html

Unpaid medical bills are one of the most common causes of poor or bad credit, and if enough payments are missed FICO scores can plummet below subprime. Once this happens it is almost impossible to be approved for an auto loan, even from the less regulated Buy Here Pay Here lots. Thankfully Chicago and its various suburbs have programs in place to help residents pay medical expenses, and some will even help cover additional treatments so credit scores don’t drop any lower. A few of the programs that residents depend on to help them get and pay for the healthcare that they need include,

Depression and Bipolar Support Alliance: (800) 826-3632

WIC (healthcare for women, infants and children) (703) 305-2062

The Department of Health can also be accessed online for additional assistance with medical care and bills.

Along with professional football, basketball and two baseball teams to watch and root for, the large city of Chicago is also home to fabulous shopping and dining on Michigan Avenue. During the warm summers the beaches along Lake Michigan are filled with residents and tourists, where you can indulge in fishing, boating, and swimming or simply spend the day lying in the sun.

During the winter Millennium Park opens its ice skating rink for residents to enjoy, and there are also several world class museums and galleries located nearby for you to wander through. For those interested in some of Chicago’s colorful history, there is a Mob Tour where you can see where some of the areas famous gangsters lived and played.

While Chicago’s large size can make the city difficult to navigate without a car, overall it is designed to be a fun and family friendly city with a little something for everyone.

There is no denying that Chicago is an expensive city to live in whether you are in or out of the Loop. One question residents need to ask themselves is if they are managing their finances properly. It is not uncommon to find residents living beyond their means, and this will have a negative effect on their credit scores. This is important if you want to be able to enjoy all of the attractions that the Windy City has to offer.