May 25
adminAuto Loan Bankruptcy Loan, Car Loan After Bankruptcy, Collateral, Collectibles, Credit Cards, Credit History, Financial Situation, High Interest, Installment Payments, Interest Debt, Interest Rate, Lenders, Loans, Major Credit Bureaus, Risky Customer, Savings Account, Secured Credit Card, Six Months, Three Major Credit Bureaus, Unsecured Credit Card
A car loan after bankruptcy can be one of two things. It can be a great experience as part of a plan to help you rebuild your credit and get you back to a better financial standing, or it can be a giant problem and a way into more high interest debt. Even if you’re in a situation where you’re desperate for a vehicle, you can still try and make your experience become the first one.
Bankruptcy is supposed to be a new start. Sadly for many people after things are finalized they are left not knowing what to do next, and still in a nasty financial situation.
Before you start looking to get a car loan after bankruptcy I recommend building up your credit a bit if possible. There are two types of credit you’re going to want to have, installment and revolving. Installment payments are for things like loans, where as revolving is for things like credit cards.
Obviously in your situation getting a traditional unsecured credit card can be difficult. You do have the option, however, to get a secured credit card. You can usually find these at your current bank or credit union. You deposit a few hundred dollars into a savings account which will be used as security to secure your credit limit on your new card. After approximately a year you will be able to apply for an unsecured card. Make sure that the company you work with reports to the three major credit bureaus about your on time monthly payments so that you build positive credit history.
It is recommended that you wait six months to get a car loan after bankruptcy, not just to build up your credit a bit, but because most lenders won’t work with you before then, and the ones who will, will offer you an even higher interest rate than you’d be offered if you wait a while.
Even after six months to a year you will still be offered very high rates. This is because you are seen as a risky customer. You can try to offset this risk by offering your home, another vehicle, or high priced collectibles as collateral and you will have an easier time both finding a lender and getting a better interest rate. You can also make things easier by finding a cosigner if collateral isn’t an option for you, but you should be aware that if you fail to make your payments this person will be held responsible.
These high rates are generally considered worth the cost, not just because you need a vehicle, but because by paying these rates now and making your payments on time every month you build up a positive credit history and will be offered better rates in the future and generally have an easier time of things financially.
By being responsible and in control of your finances a car loan after bankruptcy can be part of a plan to get yourself back on track.
May 25
adminAuto Loan Annual Credit Report, Automatic Bill Payment, Bad Credit, Buying A New Car, Car Loan, Car Repairs, Credit Card Payments, Credit Cards, Credit History, Credit Rating, Credit Score, Debit Credit Card, Discrepancy, Dream Car, High Interest Rate, Late Payments, Maximum Rate, Prime Lending Rate, Shopping Spree, Spite
Building a good credit history is easier than most people think. If you plan to purchase major items like a house or a new car, or start a small business, it is vital for you to have a good credit history.
Here are some tips to maintain a good credit score and have a good history:
1. Make a list of the in’s and out’s of your expenses. This is especially true when going on a major shopping spree. After making a big dent on your credit card, take a look at your annual credit report and check for any discrepancy.
2. Pay all your monthly bills promptly. It is a good thing to apply for an automatic bill payment for the bills that you really need to pay, as well as your monthly credit card payments.
3. Do not overcharge your credit cards. You credit score might lower if you go over the limit on your account.
When buying a car or if you car needs an overhaul or a major repair, it would help a lot if you have a good credit history.
First, the better your credit score is, the lower interest rates you can get when buying a new vehicle.
Second, for major car repairs, some shop owners require you to have a non-debit credit card, and of course, a good credit rating.
However, there are cases wherein you need to accept a less-than-ideal deal when buying a card if your credit score is low, or if your credit history is a mess.
‘Buying your Dream Car’
Here’s how you can get a car loan in spite of bad credit:
One of the major disadvantages of making late payments on a credit card is that your credit score will decrease.
This will be reflected on your credit history, and once there is a late payment reflected on your record, you will be offered a higher interest rate when buying a new car.
Once you are offered a high interest rate, do not sign anything yet. There is such a thing as a ‘prime lending rate’.
This is the ideal maximum rate that you should be offered when making a loan or credit, or making major purchases using your credit card.
Tell the car salesman about the interest rate that you would like to have based on the prime rate.
But still, if your credit rating is a lot lower than what they require, you will be offered a higher rate.
If you cannot get a good deal from one car salesman, do not be afraid to look for another.
You wouldn’t want to get anything less than your money’s worth, so the hunt will be worth it.
There are a lot of options available when buying a car. You can either get a new car or a previously owned vehicle.
For a new car, check if the final offer is anywhere nead the suggested retail price for the car you are getting. For a used car, decide first on the make and model of the car that you will get and check out the ongoing rates online.
With these tips in mind, you can be on your way to driving that dream car home in spite of a bad credit history.
May 25
adminAuto Loan Building Loans, Car Loan, Checking Account, Collateral, Credit Card Payment, Credit Checks, Credit History, Credit Loans, Credit Report, Credit Score, Drawback, Financial Institutions, Installments, Interest Rate, Loan Length, Measures, Payday Loan, Payday Loans, Risk, Savings Account
Why having no credit history is a drawback?
The problem with having no credit history is that the lender has no means to measure the risk involved in lending to someone with no credit history. Unless you can provide some other asset as collateral besides the car, the lender is incapable of establishing the loan amount he can grant, the interest rate he will charge and the number of installments or loan length.
What the lender wonders is why someone with no credit history never requested a loan. Was it that he never needed one before? Or was it that he already knew he wouldn’t get approved?
What can be done to solve the no credit issue?
There are many measures you can take in order to work out this problem. What you need to do is to start building yourself a healthy credit history. There are many financial products you can acquire in order to get the financial institutions start reporting to the credit agencies and thus start building a credit history.
Payday loans do not require credit checks, so you’ll be able to apply for a payday loan without worrying about not having a credit history. The problem with payday loans is that the interest rate charged for this kind of products is very high and you may not need the money, so it makes no sense to request an expensive loan just to get your payment recorded into your credit report. Besides, you’ll need a savings account and a steady income which leads us to the really first step:
If you don’t have one already, open a savings account with a bank and if possible a checking account too, this will contribute to your credit history building process. Since any transactions made with this accounts will be recorded and reported to credit agencies.
If possible ask for a credit card, use it for daily expenses you would otherwise pay in cash and pay the full balance when the credit card payment is due. This will be recorded into your credit history too and will raise your credit score significantly.
The next step would be to find a lender, the smartest thing to do is to request one first at the financial institution where you opened the accounts. However if you can’t get approved there, you may want to try applying with other lenders. There are many online car loan lenders dealing with bad credit car loans specially designed for those with bad credit, no credit or even bankruptcy.
Getting recommendation letters from your employer and from any creditor that doesn’t report to credit agencies stating that you are a good payer, will greatly improve your chances of getting approved for a loan. It may sound a idealistic thing to do but I assure you that the lender will take those letters into account too when making a decision.
May 25
adminAuto Loan Added Interest, Borrowers, Car Finance, Car Loan, Car Loans, Collateral, Credit History, Different Financial Institutions, Early Exit, Exit Fees, Finance Institutions, Financial Documentation, Financial Institution, Financial Situation, Interest On The Loan, Interest Rate, Lingo, Motor Vehicle, Novices, Repayments
The fine print of car loans can be riddled with complicated conditions and industry lingo, making them hard to understand for car finance novices. In its simplest terms, a car loan involves the lending of money from a financial institution to a borrower for the purchase of a motor vehicle. That money will then have to be paid back within a set period of time, with added interest. While this sounds straightforward enough, there are a few components of loans which are essential to understand before agreeing to take one out. While these are the common elements of car loans, it’s important to check the specific terms and conditions of loans from different car finance institutions, which are likely to vary.
Interest Rate. The interest rate of a loan refers to the rate that the interest on the loan is charged by the financial institution, expressed as a percentage of the sum borrowed. Interest rates vary between different loans and different financial institutions and are largely determined by the size of the loan and your credit history. For loans that require little financial documentation, for example, interest rates are likely to be higher as there is little guarantee that the borrower will be able to make repayments on time. In this instance, the interest rate acts as a form of collateral. Term. Term refers to the length of the loan, which can be anything from one to six years, depending on your financial situation. The longer the length of the loan -or the time by which it must be repaid – the greater the interest rate will be. Deposit.The loan deposit refers to the down payment – or the money that a borrower can afford to pay up front – when applying for a loan. The larger the deposit, the less money you will have to loan from a financial institution, and accordingly the lower the interest rate. However, the larger your deposit, the more money you will be authorised to borrow. All loans require borrowers to lay down a deposit. Early exit fees.To ensure they make as much money off a loan as possible, most loan companies will charge an early exit fee should you want to pay the loan off more quickly than the term agreement. It is possible to get loans that charge no exit fees, however they can be harder to find and can charge higher interest rates. However, if you are planning to pay a loan off as quickly as possible and don’t wish to be locked into a long term contract, it’s worth trying to negotiate a loan with no early payment penalties.
Understanding a loan before taking one out will help ensure you get the best car loan deal and are fully prepared for the payments and term you’ll be locked into for your vehicle purchase. When looking for car loans, Australia offers a range of different loan and car finance options and institutions through which they are available. Researching your car loan thoroughly will help guarantee that you are a savvy car buyer and able to repay the loan on terms and agreements that suit you.
May 14
adminArticles Auto Policies, Auto Policy, Cheap Auto Insurance, Confidence, Credit History, Education Standards, Financial Survival, Healthcare Reform, High Priority, Instalments, Insurance Policies, Liability Policy, Making Decisions, Many Voices, National Association Of Insurance Commissioners, Policy Decision, Quick Test, Reading Skills, Reform Debate, Saving Money
Recently, President Obama made a big speech. He was worried about education standards. He wanted to divert more resources into improving basic reading skills and giving people a better understanding of the world around them. It was interesting to see how many voices were raised in complaint. They did not agree it should be a high priority for people to know more about the world. These are the voices of big businesses like insurance that rely on you not understanding how policies work. There is more profit to be made if people do not read and understand what they are buying. How bad is this problem? The answer comes in a recent survey carried out by the National Association of Insurance Commissioners (NAIC). It seems only 45% of you have any real sense of confidence when you buy insurance policies, more than 60% failed to define simple concepts from health and auto policies, and 86% did not understand the terms being used in the healthcare reform debate. When insurance is so important to financial survival in the US, it is disheartening that people are not making decisions based on the best information.
Here is a quick test:
- if some property is stolen from your vehicle, can you claim its value on your auto policy?
- is your credit history taken into consideration when you buy a policy?
- when you buy a liability policy which insures 100/300/100. what does the last figure mean?
When you want insurance, you could make a policy decision only to buy through an agent. Being able to talk to a person gives you access to their knowledge and experience. It can give you more confidence. Except most agents will charge you a fee or there will be commission deducted out of your premium instalments, so this advice can come expensive. Is it worth it when you can do a little study and learn what you need to know. As a starting point, look at http://www.InsureUonline.org/. Getting more savvy means saving money and getting a better deal by buying a policy online. So long as you shop around, getting as many auto insurance quotes as possible, you should always be able to find a good deal. But, if you are still uncertain, do not be afraid to pick up the telephone before writing out a check or authorizing a credit card payment. Now you make a choice. Your state has a Department of Insurance and all of them run help lines to answer your questions. Alternatively, call the auto insurance company directly. Make sure you understand your policy before you find out the hard way when making a claim. In other words, you should always protect yourself and avoid future losses by asking before you buy.
The answers to the questions are: property stolen from your vehicle is covered by your homeowners policy not the auto insurance policy; your credit score is a key factor for setting your premium rate in the majority of states; and the final $100,000 is the maximum amount payable for damage to property.
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