Are you concerned that you have a low credit score? Do you think you will get turned down for a loan because of your low credit score? This information may help you.
First, a low credit score would be any score below 600. Now this also depends on what you need a loan for. Most car dealers will approve a loan with a credit score of 525 or higher with a good down payment.
Second, If you can wait on getting a loan, wait until that score goes up, but if you need one now try to find the right type of lender.Suppose you need a personal loan for $5000 and your score is only 540, don't go to a bank for a loan because they will turn you down. You will have an better chance of approval at the payday loan office or an online lender like CreditSource.org.
Third, if you have a low score and want a mortgage or refinance, then you will need something to bargain with like high equity on the re-fi or big down payment on the purchase. With a low credit score these tips can help you avoid getting into something that may not be in your best interest.
If you want more information about a low credit score or how to improve it, visit Credit Help Pro. They have all of the information you need about credit and debt solutions
Monday, August 24, 2009
Monday, August 17, 2009
Loans for people with bad credit
When you start a family of your own you start building debt in so many ways - for buying a car, buying a house and so on. In our case, it was worse because we were working at different place, me in Kedah in the north of Malaysia and my wife in Kuala Lumpur. We had to maintain 2 separate houses and we also had our own cars. We also decided to buy an apartment on a loan which we have to repay for 25 years.
This caused a severe strain on our finances. We were fortunate because both of us were working. However, things would suddenly turn up that we had no chance but to borrow money (using our credit cards). Like the time my wife had to go for a Caesarean birth. We decided to go to a private hospital and as you know these places are not free or even cheap. Fortunately our bank credit history was good.
We are still in the process of repaying of our house loan. Thank God! we got rid of both our car when we came to the UK, otherwise we would have been paying for that too.
I am sure many people are in a similar situation and maybe worse. Some of these people come under what is known as a bad credit history. Whenever we apply for a loan, our credit history is reviewed. If you have a bad credit history, you may have to settle for a bad credit loan, which has less favourable terms including higher interest rates. There are several Loans For People With Bad Credit. This includes Bank loans for financing your business and Secured loans for people with bad credit but who have property, among others.
This caused a severe strain on our finances. We were fortunate because both of us were working. However, things would suddenly turn up that we had no chance but to borrow money (using our credit cards). Like the time my wife had to go for a Caesarean birth. We decided to go to a private hospital and as you know these places are not free or even cheap. Fortunately our bank credit history was good.
We are still in the process of repaying of our house loan. Thank God! we got rid of both our car when we came to the UK, otherwise we would have been paying for that too.
I am sure many people are in a similar situation and maybe worse. Some of these people come under what is known as a bad credit history. Whenever we apply for a loan, our credit history is reviewed. If you have a bad credit history, you may have to settle for a bad credit loan, which has less favourable terms including higher interest rates. There are several Loans For People With Bad Credit. This includes Bank loans for financing your business and Secured loans for people with bad credit but who have property, among others.
Thursday, August 6, 2009
Car Loan Tips
Financing a new car purchase requires some research. Before venturing out to the car dealerships uninformed, let's take a look at what you will need to know about the car buying process.
First of all, about 70% of all new car purchases are financed. So unless you plan on paying cash for your new car, or you are going to apply for a car loan, chances are you will be financing your purchase.
1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You don't want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.
First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.
From that, you need to remember that buying a car involves more than a down payment and monthly payments. In your budget you will need to include licensing, registration and other hidden costs, as well as monthly insurance costs, gas and maintenance.
Once you have all of this worked out, you should have a ballpark figure of the budgeted amount you can use for car payments. A good rule of thumb is roughly 20 percent of your net income can be used for a car payment. Once you determine that figure, stay with it.
2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.
This is really about personal choice, but a good criteria to go buy is to look at what your needs are. Do you have a family? There are plenty of affordable, safe and reliable minivans and station wagons on the market. Single and commute, or do a lot of city driving? The compact segment has a wide range of models to choose from that boast handling and superior gas mileage. Do you use your vehicle for work-related tasks, such as hauling, delivery, etc? Check out the many light and heavy-duty pickup trucks and vans. Midlife crisis? There are several convertibles and sports cars that will make you feel young again.
Also consider your wants. Compact cars get really good gas mileage and are a great if you want to save money on the increasing gas prices. Plan on taking road trips? Consider something that gets good mileage and has cargo space and lots of cup holders. Plan on going off-roading? The SUV is your best bet. Some even come with a first-aid kit!
Once you've narrowed your choices down to a couple, it's time to do some car research.
3. Do your homework
All right, Columbo. Here's where you will need to spend some time sorting through some details, but it will be worth the effort in the end. After all, the more you know about what you're buying, about whom you're buying from, and about the buying process itself, the more money you will end up saving.
There are plenty of places for you to do your car research. Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Knowing what a car dealer's competition is offering can only help you out in the negotiating process.
Look at interest rates. You'll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment "savings," with interest, you'll end up paying more in the long run.
Also be aware of factory-to-dealer incentives. The secret is that the manufacturer refunds a certain percentage of the car's price to the dealer. So even if the car dealer sells you a car at the invoice price, he or she will still make money from the deal. Find out about a manufacturer's incentive percentage, as they are public information.
You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.
4. Go to the car dealerships
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off you'll be. But remember: Car dealers are professional negotiators and do it everyday. You are a novice and will be treated as such. The car dealers aren't going to be easy on you, nor are they going to point out all the ways you can save money. It's up to you to find all of those.
Also remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Don't let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.
First of all, about 70% of all new car purchases are financed. So unless you plan on paying cash for your new car, or you are going to apply for a car loan, chances are you will be financing your purchase.
1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You don't want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.
First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.
From that, you need to remember that buying a car involves more than a down payment and monthly payments. In your budget you will need to include licensing, registration and other hidden costs, as well as monthly insurance costs, gas and maintenance.
Once you have all of this worked out, you should have a ballpark figure of the budgeted amount you can use for car payments. A good rule of thumb is roughly 20 percent of your net income can be used for a car payment. Once you determine that figure, stay with it.
2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.
This is really about personal choice, but a good criteria to go buy is to look at what your needs are. Do you have a family? There are plenty of affordable, safe and reliable minivans and station wagons on the market. Single and commute, or do a lot of city driving? The compact segment has a wide range of models to choose from that boast handling and superior gas mileage. Do you use your vehicle for work-related tasks, such as hauling, delivery, etc? Check out the many light and heavy-duty pickup trucks and vans. Midlife crisis? There are several convertibles and sports cars that will make you feel young again.
Also consider your wants. Compact cars get really good gas mileage and are a great if you want to save money on the increasing gas prices. Plan on taking road trips? Consider something that gets good mileage and has cargo space and lots of cup holders. Plan on going off-roading? The SUV is your best bet. Some even come with a first-aid kit!
Once you've narrowed your choices down to a couple, it's time to do some car research.
3. Do your homework
All right, Columbo. Here's where you will need to spend some time sorting through some details, but it will be worth the effort in the end. After all, the more you know about what you're buying, about whom you're buying from, and about the buying process itself, the more money you will end up saving.
There are plenty of places for you to do your car research. Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Knowing what a car dealer's competition is offering can only help you out in the negotiating process.
Look at interest rates. You'll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment "savings," with interest, you'll end up paying more in the long run.
Also be aware of factory-to-dealer incentives. The secret is that the manufacturer refunds a certain percentage of the car's price to the dealer. So even if the car dealer sells you a car at the invoice price, he or she will still make money from the deal. Find out about a manufacturer's incentive percentage, as they are public information.
You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.
4. Go to the car dealerships
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off you'll be. But remember: Car dealers are professional negotiators and do it everyday. You are a novice and will be treated as such. The car dealers aren't going to be easy on you, nor are they going to point out all the ways you can save money. It's up to you to find all of those.
Also remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Don't let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.
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