Refinance Used Car Loans - save money on interest payments
You bought that used car through a loan some months back. Because of your bad credit or for any other reason you took the loan at higher interest rate. As a consequence, you are now paying high amount each month as the loan installments and stressing your source of finances. Still, you can opt for refinance used car loans at lower rate that replaces existing car loan of higher rate and saves lots of money. There are common examples where refinancing used car has saved up significant amount for the borrower.
But interest rate is not the sole reason behind opting for refinance used car loans. Your prime concern may be to just reduce your monthly payments towards the auto loan. Or you could opt for shortening of the loan term for early clearing of the loan burden. On shortening the term you can fast build up equity in the car. When you take a new car loan, lenders give you 90 day break from making payments, which also may be one reason for refinancing your car loan so that you get relief of payments for some time.
Whatever be your reason for Refinance Used Car Loans, ensure that you have first done your homeowner towards the refinancing. You must clearly know the balance amount for paying off existing car loan. The lender will not be approving more than that. In the USA, you should be borrowing at least $7000 for refinancing used car loans. So opt for the refinancing only when you are still to repay more than that amount for car loan.
And do not at all worry about your past mistakes towards various payments. Bad credit history borrowers also are being approved with ease for refinance used car loans in the USA, though with a higher interest rate. The loan can be used for repairing your credit score dramatically.
Compare lenders to find out suitable deal of lower rate of interest on refinance used car loan. Online lenders should be preferred for competitive rates and for less additional charges on the loan processing.
Monday, November 26, 2007
Tips On Buying Car Insurance With Bad Credit
If you have bad credit, you may be finding that getting a good deal on your car insurance is not an overly easy task. In the world today, more and more people are finding themselves in serious financial trouble and bad credit is dramatically on the increase. It is restricting people’s lives and it often causes them to get into deeper financial trouble, as the cost of things such as their car insurance goes up.
Finding Good Car Insurance Deals With Bad Credit
While it may be slightly more difficult finding a good deal on your car insurance when you have bad credit, it is certainly not impossible. There are some companies that deal specifically with people who have a bad credit history and they offer special deals to suit your needs. Even if you cannot find a good deal, there are also other ways in which you can improve your situation to get a good deal.
Some of the main things that you can do to purchase good deal car insurance with bad credit include:
- Improve your credit rating - Compare different companies - Take out a bad credit loan - Purchase a cheaper car - Don’t accept any extras on a loan - Make sure you have a full time job
All of the above will really help you to get a good deal on your car insurance. The main thing that you should aim to do ideally would be to improve your credit rating. Paying off most of the debt that you have will help to improve your rating and insurance companies will be more willing to give you a better deal. You could also apply for a credit card that you could use specifically to get your credit rating up. By making small purchases and paying off the full balance at the end of the month, you will help to improve your rating. Just remember not to use the card for anything else.
Most people with bad credit have to rely on another loan to help them to purchase their car insurance. Now, while there is nothing wrong with this if you can comfortably afford the repayments, you should be extremely careful where you get the loan and what you use it for. For example, many people use the loan to get a new car before they get their car insurance. This can be a big mistake as you need to know what the insurance will be on the car that you choose. Different cars attract different insurance rates and so if you do have bad credit, it would be advisable to choose a car that has as low an insurance rate as possible.
Car insurance can be expensive and it is unfortunately something that every driver needs. The main tip for you to follow is to purchase a car only after you have researched different car insurance rates. Also try to improve your credit rating as much as possible beforehand and get as many auto insurance quotes as possible before you your decision.
If you are looking for more FREE information on buying car insurance with bad credit, please visit our website: http://www.htquotes.com
Finding Good Car Insurance Deals With Bad Credit
While it may be slightly more difficult finding a good deal on your car insurance when you have bad credit, it is certainly not impossible. There are some companies that deal specifically with people who have a bad credit history and they offer special deals to suit your needs. Even if you cannot find a good deal, there are also other ways in which you can improve your situation to get a good deal.
Some of the main things that you can do to purchase good deal car insurance with bad credit include:
- Improve your credit rating - Compare different companies - Take out a bad credit loan - Purchase a cheaper car - Don’t accept any extras on a loan - Make sure you have a full time job
All of the above will really help you to get a good deal on your car insurance. The main thing that you should aim to do ideally would be to improve your credit rating. Paying off most of the debt that you have will help to improve your rating and insurance companies will be more willing to give you a better deal. You could also apply for a credit card that you could use specifically to get your credit rating up. By making small purchases and paying off the full balance at the end of the month, you will help to improve your rating. Just remember not to use the card for anything else.
Most people with bad credit have to rely on another loan to help them to purchase their car insurance. Now, while there is nothing wrong with this if you can comfortably afford the repayments, you should be extremely careful where you get the loan and what you use it for. For example, many people use the loan to get a new car before they get their car insurance. This can be a big mistake as you need to know what the insurance will be on the car that you choose. Different cars attract different insurance rates and so if you do have bad credit, it would be advisable to choose a car that has as low an insurance rate as possible.
Car insurance can be expensive and it is unfortunately something that every driver needs. The main tip for you to follow is to purchase a car only after you have researched different car insurance rates. Also try to improve your credit rating as much as possible beforehand and get as many auto insurance quotes as possible before you your decision.
If you are looking for more FREE information on buying car insurance with bad credit, please visit our website: http://www.htquotes.com
Used Car Auto Loans: Be A Bit Wise and Economic
Are you dreaming about a perfect sports car, luxury vehicle, sedan, SUV, or truck? Is a new car out of your reach because of your shattered pocket? Or searching for financial resources to get a used car for comfort? Used car auto loans are the best answer to your problems then. Today’s car shoppers know that there is a range of financing options available for new cars. For millions of buyers who can't afford, or do not wish to buy a brand new vehicle, a used car loan may be the best option
Types and features These are available both in secured and unsecured forms. For the secured one you have to place collateral against the loan amount but you need not to place any in the later case. The key difference is that the approvable loan amount is pretty larger if you go for the secured form of the loans. You can get an amount of £1000 to £10000 depending upon your need and repayment ability. The APR is around 10% for these loans.
What makes Used Car auto Loans a leading player * Reasonable rate of interest * Flexible tenure * Loan for bad credit scorers * Complete transparency * Easy repayment options
How you can get The lenders take full care of your conveniences and hence provide hassle free procedure for you. The lenders keep in mind that your time is precious and therefore make sure that it does not take long to verify documents and furnish other formalities.
The procedures The web-based application procedure is relatively painless, and response times are reasonable. Current loan rates are listed online, allowing you to calculate your rough monthly loan payment amounts in advance. Once you submit the form online, the staff will begin reviewing it for the approval process, and you will be contacted by your preferred method once completed. Once the loan amount has been approved it will instantly be transferred to your bank account.
As cars get better and better over the years, more people realize they do not necessarily need a new car. Used cars offer better value because the largest depreciation has already occurred. If you are looking for a used car, take your time to check out the various used car loan providers. Doing so can save you a lot of money, and make getting your new wheels a lot easier. Summary Used car auto loans provide money to buy second hand cars. A sufficient amount can be procured either in secured or unsecured form. One should go for a nice deal to reap the maximum benefits of these loans.
Types and features These are available both in secured and unsecured forms. For the secured one you have to place collateral against the loan amount but you need not to place any in the later case. The key difference is that the approvable loan amount is pretty larger if you go for the secured form of the loans. You can get an amount of £1000 to £10000 depending upon your need and repayment ability. The APR is around 10% for these loans.
What makes Used Car auto Loans a leading player * Reasonable rate of interest * Flexible tenure * Loan for bad credit scorers * Complete transparency * Easy repayment options
How you can get The lenders take full care of your conveniences and hence provide hassle free procedure for you. The lenders keep in mind that your time is precious and therefore make sure that it does not take long to verify documents and furnish other formalities.
The procedures The web-based application procedure is relatively painless, and response times are reasonable. Current loan rates are listed online, allowing you to calculate your rough monthly loan payment amounts in advance. Once you submit the form online, the staff will begin reviewing it for the approval process, and you will be contacted by your preferred method once completed. Once the loan amount has been approved it will instantly be transferred to your bank account.
As cars get better and better over the years, more people realize they do not necessarily need a new car. Used cars offer better value because the largest depreciation has already occurred. If you are looking for a used car, take your time to check out the various used car loan providers. Doing so can save you a lot of money, and make getting your new wheels a lot easier. Summary Used car auto loans provide money to buy second hand cars. A sufficient amount can be procured either in secured or unsecured form. One should go for a nice deal to reap the maximum benefits of these loans.
Tips For A Better Auto Loan
When you need to get a new car, you do not need to take the loan that the dealer offers to you. While the loan may sometimes be a good deal - it is not necessarily the best. For you to save money, though, and get a better deal, simply follow the steps below.
1. Know How Much You Can Afford
Part of getting the loan that you want is to make sure it fits your budget. For this reason, you need to calculate how much you can comfortably afford. Only you know just how much this is, and you need to try to stay below this figure when getting your new car. It will not help you to buy a car you really cannot afford to keep or maintain. Remember, when you calculate this figure, you should have an idea about how much car insurance will be, and other expenses such as gas.
2. Get Preapproved For An Auto Loan
Find a lender by getting several quotes and seeing how much they will lend you. This will save you time, and in many cases money, because it will enable you to start out knowing exactly how much of a loan you have to work with.
Once you are approved, the lender will issue you a blank check with a credit limit. All you need to do is find the car you want and fill in the check for the amount of the car. The loan is not actually in force until you sign it. If you don't, then the loan will be cancelled and the check becomes void after a short period.
3. Find A Car You Like
The next thing is to get an idea of the car you want to buy. You can do this easily by searching online. Then you want to find out how much that same car is selling for elsewhere, as well as looking it up in the Blue Book.
Be careful of paying a fee to see the cars at any car dealer. This is just a ploy to get you to give them some money so they can hold you there until you buy from them. You should not have to pay anything to see cars - or even test-drive them.
4. Negotiate Price
After knowing the price of what a car is worth, you can negotiate for a better price with the car salesman. Typically, you should be able to bring the car down to within a couple of hundred dollars of cost. They do need to make some profit, since this is how they put bread on their table.
Also, don't forget that you can reduce your payments more by making a down payment. The larger the down payment, the less you will need to pay each month. It is also true that if you keep the time for repayment as short as possible, it will save you more dollars in interest. Be sure to understand some of the things that the dealer may try to add to your agreement. Some of these may make sense - others are really unnecessary
5. Drive Away
The obvious last step of the deal. This is where you can drive away with a smile on your face. Your research has told you that you came away with a good deal - and you are now comfortable with it. Enjoy your new car.
1. Know How Much You Can Afford
Part of getting the loan that you want is to make sure it fits your budget. For this reason, you need to calculate how much you can comfortably afford. Only you know just how much this is, and you need to try to stay below this figure when getting your new car. It will not help you to buy a car you really cannot afford to keep or maintain. Remember, when you calculate this figure, you should have an idea about how much car insurance will be, and other expenses such as gas.
2. Get Preapproved For An Auto Loan
Find a lender by getting several quotes and seeing how much they will lend you. This will save you time, and in many cases money, because it will enable you to start out knowing exactly how much of a loan you have to work with.
Once you are approved, the lender will issue you a blank check with a credit limit. All you need to do is find the car you want and fill in the check for the amount of the car. The loan is not actually in force until you sign it. If you don't, then the loan will be cancelled and the check becomes void after a short period.
3. Find A Car You Like
The next thing is to get an idea of the car you want to buy. You can do this easily by searching online. Then you want to find out how much that same car is selling for elsewhere, as well as looking it up in the Blue Book.
Be careful of paying a fee to see the cars at any car dealer. This is just a ploy to get you to give them some money so they can hold you there until you buy from them. You should not have to pay anything to see cars - or even test-drive them.
4. Negotiate Price
After knowing the price of what a car is worth, you can negotiate for a better price with the car salesman. Typically, you should be able to bring the car down to within a couple of hundred dollars of cost. They do need to make some profit, since this is how they put bread on their table.
Also, don't forget that you can reduce your payments more by making a down payment. The larger the down payment, the less you will need to pay each month. It is also true that if you keep the time for repayment as short as possible, it will save you more dollars in interest. Be sure to understand some of the things that the dealer may try to add to your agreement. Some of these may make sense - others are really unnecessary
5. Drive Away
The obvious last step of the deal. This is where you can drive away with a smile on your face. Your research has told you that you came away with a good deal - and you are now comfortable with it. Enjoy your new car.
Monday, October 15, 2007
Used Car Donations
Concept of used car donation is noble idea and it is popular too. In daily life you see a number of vehicles with banners of certain organizations providing services to needy people. In this you see ambulances with thanksgiving lines to the donor who may be an individual or a charity group. You also see some vehicles providing assistance to victims of natural calamities like floods and earthquakes. Have you ever think from where these vehicles come from? Some of these vehicles are donated by donors under used car donation scheme.
This is an easy way to make your contributions towards humanity service. Used vehicles normal gain very little resale value and one may even think of throwing it in scrap. But when such used vehicle is donated to an organization, it may boost their fund raising drive for their activities of social importance. Such used vehicles received from the donors are used by these organizations for providing help to need people in many ways. An organization may modify the vehicle into an ambulance or use it for transporting the aid to need people or the victims of some calamity. The organization may think of auction the received vehicle to raise fund for their social activities. In both the cases your contribution surely helps the needy people.
If one is determined to donate his used vehicle he can search for an organization or charity group serving the need people through local media or through internet. After he chose a particular organization of his preference his duty is only to contact that organization. It is responsibility of the concerned organization to tow away the vehicle from any part of the nation and complete other administrative formalities. Donation of used vehicles is a cheaper, easy and hassle free process. As there is provision of grant of tax deduction and administrative charges levied on such donations are lesser this system is beneficial to both donor and organization. If you have decided to make large contributions towards human service, donating used vehicle is one of the easy methods. Organization may consider the sale of such vehicles through professional auctioneers to To gain maximum proceeds from such vehicle. This means used car donations can yield more money than selling the same vehicle in the market.
To avoid fraudulent uses of this system, which is very rare governments have laid down certain rules for donating and accepting the used vehicles. These rules are beneficial to the donor as he all information about use and sale of donated vehicle and he can claim tax deduction on his income. While choosing an organization for used car donation on must check that the organization is government approved and reliable.
No doubt, used car donation brings up rays of hope in the life of needy and underprivileged. A vehicle which otherwise was of no use for you and you might have faced problem of towing away gives assistance to needy people and satisfaction to your of having served the mankind. One must take the opportunity of donating his used car for the humanitarian purpose instead of throwing it in scrap.
Author: Dave M
This is an easy way to make your contributions towards humanity service. Used vehicles normal gain very little resale value and one may even think of throwing it in scrap. But when such used vehicle is donated to an organization, it may boost their fund raising drive for their activities of social importance. Such used vehicles received from the donors are used by these organizations for providing help to need people in many ways. An organization may modify the vehicle into an ambulance or use it for transporting the aid to need people or the victims of some calamity. The organization may think of auction the received vehicle to raise fund for their social activities. In both the cases your contribution surely helps the needy people.
If one is determined to donate his used vehicle he can search for an organization or charity group serving the need people through local media or through internet. After he chose a particular organization of his preference his duty is only to contact that organization. It is responsibility of the concerned organization to tow away the vehicle from any part of the nation and complete other administrative formalities. Donation of used vehicles is a cheaper, easy and hassle free process. As there is provision of grant of tax deduction and administrative charges levied on such donations are lesser this system is beneficial to both donor and organization. If you have decided to make large contributions towards human service, donating used vehicle is one of the easy methods. Organization may consider the sale of such vehicles through professional auctioneers to To gain maximum proceeds from such vehicle. This means used car donations can yield more money than selling the same vehicle in the market.
To avoid fraudulent uses of this system, which is very rare governments have laid down certain rules for donating and accepting the used vehicles. These rules are beneficial to the donor as he all information about use and sale of donated vehicle and he can claim tax deduction on his income. While choosing an organization for used car donation on must check that the organization is government approved and reliable.
No doubt, used car donation brings up rays of hope in the life of needy and underprivileged. A vehicle which otherwise was of no use for you and you might have faced problem of towing away gives assistance to needy people and satisfaction to your of having served the mankind. One must take the opportunity of donating his used car for the humanitarian purpose instead of throwing it in scrap.
Author: Dave M
Thursday, October 11, 2007
Car Financing - Choosing The Right Financing Option
Car Financing - Choosing The Right Financing OptionBy Alfred Anderson When it comes to a car purchase, the most preferred mode of financing the purchase is a car loan. The primary reason for the increasing popularity of car loans among car buyers is that it does not let you fell the pinch of the purchase. However car loans are of various types, which serve the interests of a wide variety of customers so it is of prime importance to select a loan option that best suits your requirements.So how do you select the right loan option for yourself? The prerequisite to this is to analyze your finances, credit score and the amount of loan required. If you have a good credit score, getting a loan will not be a problem for you. Moreover with a good credit score, repayments become a lot easier since the interest rates charged are lesser than those of a bad credit loan. To sum up, loan applicants with good credit scores find immediate favor among the financing companies.On the other hand most financial organizations are apprehensive about lending money to those with a bad credit history. Nevertheless, there are organizations that specialize in lending bad credit loans. The interest rates in this case are usually higher than those applicable for customers with a decent to good credit record. A steep interest rate should not be a concern for the customers since an individual’s credit score can be improved over a period of time and the loan can then be refinanced at a lower rate of interest.Most of us have a special inclination for a specific car model, the price of which goes beyond out budget in most cases. Opting for a used car of similar make can be very good option provided you have checked the technical details well enough. Lack of technical knowledge is a hindrance, so get an expert who can check a used car and comment on it. Once you have short-listed the car, opt for a used car loan straightaway.Apart from that it is wise not to depend on a single financing company. Ask for quotes from different companies and then settle for the better one. Online car loan calculators are available in various websites, which is a handy tool in comparing the interest rates. To sum up, the right type of loan is the one that you feel comfortable with.Alfred Anderson has rich experience in the field of online brand marketing. His interests includes Internet marketing and research on emerging online business trends. Bad Credit Car Loans1st Articles : www.BlogsTrue.com
08 Aug 2007 1st Article
08 Aug 2007 1st Article
Wednesday, October 10, 2007
Drive in your 'dream' car in reality
Are you spending your nights having the 'sweet' dream of sitting on the wheels of a swanky car and enjoying an exciting drive? Well, folks! It is the time to wake up and make this dream a reality. It is true that purchasing a car is not a child's play. But nowadays, there are a number of convenient financing solutions available in the market that can transform the dream of owning a car into reality.The number and variety of car financing options can bewilder you when you initially venture into the market. Choosing a right means is a challenging task.
There are car dealers who offer financial aid to the car buyers. Usually, the car dealers offer interest-free finance. However, this applies for new cars. If you opt a car dealer for financing your car purchase, often you need to make a substantial amount of deposit. Moreover, make sure that the interest rate advertised by the car dealer is applicable for the car model you wish to buy. Try to get an attractive discount on your car model from the dealer.Car loans are another very popular car financing solution used by Brits for buying their dream car. Increased demand for cars by people from all sections of the society has a direct impact on the market for car loans. There are many lenders in the car loan market who offer car loans at quite attractive rates.
Two types of car loans are available in the UK loan market: secured and unsecured car loans. For availing a secured car loan, you need to put forth security in the form of any valuable asset, such as your home. This security proves beneficial for you as you get highly competitive rates on the loan.If you do not own a valuable property or do not wish to risk your assets, you may opt for an unsecured car loan. You receive this loan without submitting any security.So, choose a suitable car financing option depending upon your requirements and enjoy a thrilling ride on your 'dream' wheels...in reality!
Source: http://www.articlealley.com
There are car dealers who offer financial aid to the car buyers. Usually, the car dealers offer interest-free finance. However, this applies for new cars. If you opt a car dealer for financing your car purchase, often you need to make a substantial amount of deposit. Moreover, make sure that the interest rate advertised by the car dealer is applicable for the car model you wish to buy. Try to get an attractive discount on your car model from the dealer.Car loans are another very popular car financing solution used by Brits for buying their dream car. Increased demand for cars by people from all sections of the society has a direct impact on the market for car loans. There are many lenders in the car loan market who offer car loans at quite attractive rates.
Two types of car loans are available in the UK loan market: secured and unsecured car loans. For availing a secured car loan, you need to put forth security in the form of any valuable asset, such as your home. This security proves beneficial for you as you get highly competitive rates on the loan.If you do not own a valuable property or do not wish to risk your assets, you may opt for an unsecured car loan. You receive this loan without submitting any security.So, choose a suitable car financing option depending upon your requirements and enjoy a thrilling ride on your 'dream' wheels...in reality!
Source: http://www.articlealley.com
Best Auto Loans
Anyone who purchases or plans to purchase a new or used vehicle knows how expensive and time-consuming the process can be. Sometimes even the best auto loans have hidden costs involved and car loan refinancing would be a lucrative option for many car owners. There are plenty of things to think about before signing up for an auto loan.
One important piece of information to consider is whether or not your auto loan provider of choice has direct lending. Direct lending means that the site or service cuts out the middle man and signs you up for an auto loan without referring you to a local car dealership that matches you with a loan. 6StarReviews.com reports that Capital One is one such site that provides online loan approval, as well as a blank check program whereby car shoppers can benefit as cash buyers.
Some auto loan providers such as the Cars Direct website provide several loan options, such as direct loan and dealer referrals. You can also obtain lease refinancing here, if you feel you’d benefit from such a decision. Unlike some of the top auto loan websites, Cars Direct is a place for car owners and prospectives alike who have good or bad credit scores. It’s important to consider an auto loan service that you have a good chance of being approved through, as this saves time.
Of course, with any loan, it’s important to remember why you are in fact utilizing its service. If you purchase or lease the most expensive car in town, your loan will obviously be higher. If your financial situation isn’t the best, opt for a more budget-friendly vehicle and outweigh pro’s and con’s of leasing versus purchasing. Auto loan services can assist you once you’ve made basic decisions in your car-buying process.
Kelly Liyakasa is staff writer for 6StarReviews.com. Kelly Staller is site manager at 6StarReviews.com, a site dedicated to giving YOU, the consumer, the best product and service reviews around. If you like saving time and money by having someone else review leading sites and products, then Visit our site at 6StarReviews.com. Also, if you have the time, check out the 6StarReviews Blog for product updates, new site reviews and to give us suggestions or feedback! Visit 6StarReviews.com Blog!
This article is free for republishingSource: http://www.articlealley.com/
One important piece of information to consider is whether or not your auto loan provider of choice has direct lending. Direct lending means that the site or service cuts out the middle man and signs you up for an auto loan without referring you to a local car dealership that matches you with a loan. 6StarReviews.com reports that Capital One is one such site that provides online loan approval, as well as a blank check program whereby car shoppers can benefit as cash buyers.
Some auto loan providers such as the Cars Direct website provide several loan options, such as direct loan and dealer referrals. You can also obtain lease refinancing here, if you feel you’d benefit from such a decision. Unlike some of the top auto loan websites, Cars Direct is a place for car owners and prospectives alike who have good or bad credit scores. It’s important to consider an auto loan service that you have a good chance of being approved through, as this saves time.
Of course, with any loan, it’s important to remember why you are in fact utilizing its service. If you purchase or lease the most expensive car in town, your loan will obviously be higher. If your financial situation isn’t the best, opt for a more budget-friendly vehicle and outweigh pro’s and con’s of leasing versus purchasing. Auto loan services can assist you once you’ve made basic decisions in your car-buying process.
Kelly Liyakasa is staff writer for 6StarReviews.com. Kelly Staller is site manager at 6StarReviews.com, a site dedicated to giving YOU, the consumer, the best product and service reviews around. If you like saving time and money by having someone else review leading sites and products, then Visit our site at 6StarReviews.com. Also, if you have the time, check out the 6StarReviews Blog for product updates, new site reviews and to give us suggestions or feedback! Visit 6StarReviews.com Blog!
This article is free for republishingSource: http://www.articlealley.com/
The Truth About 10 Credit Score Myths
Credit scores are enormously important to both borrowers and mortgage lenders. In the same way that doing better in work, sports or at school produces real benefits, the same is true with credit scores.
With good credit you can borrow more and pay less. With a mortgage, a borrower with solid credit might pay the best available rate while someone with poor credit might pay an additional 1.5 percent. That doesn't sound like a big deal, but on a 300,000 mortgage you're looking at an additional annual cost of as much as 4,500.
There are a lot of questions concerning good credit and how to get it. Here are 10 basics that come up with great frequency.
1. I finished college a few years ago and did not pay a lot of bills. Now I want to buy a house. How can I improve my credit? Negative items remain on credit reports for seven years (bankruptcies stay on for 10 years). However, mortgage lenders are particularly interested in your recent credit behavior, what you've done in the past two years or so. To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.
2. Is it true you need a big income to get a good credit score? No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making 45,000 a year to have a vastly better credit rating than someone who makes 200,000.
3. Can I use a federal employer number instead of a social security number to get a better credit rating? No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot? No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two? If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider: First, you have to watch credit limits. The general ideas is that the more of your available credit that you use the lower your score. For instance, imagine that you have five credit cards with different limits and in each case you have used 50 percent of the amount available to you. You then combine all cards into one card with a big balance but now you're using a far-higher percent of your available credit line, say 90 percent. A better approach is to keep balances low and pay off credit cards as you can. Second, while it makes sense to pay down credit card debts, it may not make sense to close accounts. The reason has to do with credit card history. The general rule is that the longer your history, the higher your score. The result is that you may actually want to keep older accounts open even if they're not used.
6. I'm good about paying off credit cards but not some other bills. Will this impact my credit? Yes. First, many credit cards include a so-called "universal default" provision. This means if any bill is late or unpaid, the credit card issuer can raise your rate. Second, other bills in addition to credit cards show up on credit reports and negative items are reflected in credit scores.
7. My mortgage payment is due on the 1st of the month but I'm allowed to pay as late as the 15th without penalty. If I pay on the 14th will this show up on my credit report? No -- but be careful here. A debt is considered "late" for credit reporting purposes only if it's at least 30 days overdue. However, some unscrupulous lenders charge excessive fees and may even raise interest rates if payments are even a day late. If you have such financing you should consider refinancing to get better terms. As to that mortgage payment, lenders typically provide a payment grace period because checks may be delayed in the mail and payment days may fall on weekends or holidays. However, since the bill must be paid anyway, it's absolutely best to pay either early or on time. You may find if you have a good payment record with mortgage lenders that they will be helpful if you run into problems. Example: Your mortgage payment is delayed in the mail and arrives after the grace period. A late fee is charged. You call the lender, they look at your payment history, conclude something is wrong and waive the fee. In other words, you get the benefit of the doubt because you're credible. Does this happen? You bet.
8. How often should I check my credit? Given the growing problem of identity theft -- the Federal Trade Commission says there were more than 250,000 complaints last year -- it makes sense to check credit reports regularly. The good news is that you can get three free credit reports per year, one from each of the major credit reporting agencies, without charge, by going to AnnualCreditReport.com. In addition, the Federal Trade Commission says under federal law "you're entitled to a free report if a company takes adverse action against you such as denying your application for credit, insurance, or employment and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft."
9. What should I do if I feel a payment will be late? Many creditors such as mortgage lenders, credit card companies, auto finance organizations and utilities now have several options for quick payments. You may be able to pay online, pay over the phone or pay by overnight delivery.. However, it's wise to get quick payment information now, before it's needed. For instance, some creditors have one address for regular payments and another for overnight deliveries. If you feel a payment will not be made or will be more than 30 days late, contact your lender immediately. It's often possible to work out an accommodation if you begin working with the lender as soon as possible.
10. Can I get a mortgage after a foreclosure or bankruptcy? Foreclosure and bankruptcies are serious matters which are likely to make access to mortgage financing difficult if not impossible for several years. However, some borrowers are able to get mortgages again with some speed. How? While foreclosures and bankruptcies are the worst credit events, they are not necessarily caused by consumer mismanagement or misdeeds. People have health emergencies. Companies close. Areas are devastated by natural disasters. The bottom line is this: Mortgage underwriters want to know more about you and your situation. While loans may be approved automatically, declined loans are reviewed individually. Before looking for a home, speak with mortgage lenders if you have had a foreclosure or bankruptcy. If you had a good credit record and encountered a financial catastrophe outside your control, lenders may be able to provide financing once credit has been re-established. Individual lenders can provide specific advice and information. As the expression goes, it can't hurt to ask. Peter G. Miller is a syndicated real estate and personal finance columnist who appears 70 newspapers. For more information about mortgages, please visit Mortgage Lenders Plus.com
With good credit you can borrow more and pay less. With a mortgage, a borrower with solid credit might pay the best available rate while someone with poor credit might pay an additional 1.5 percent. That doesn't sound like a big deal, but on a 300,000 mortgage you're looking at an additional annual cost of as much as 4,500.
There are a lot of questions concerning good credit and how to get it. Here are 10 basics that come up with great frequency.
1. I finished college a few years ago and did not pay a lot of bills. Now I want to buy a house. How can I improve my credit? Negative items remain on credit reports for seven years (bankruptcies stay on for 10 years). However, mortgage lenders are particularly interested in your recent credit behavior, what you've done in the past two years or so. To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.
2. Is it true you need a big income to get a good credit score? No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making 45,000 a year to have a vastly better credit rating than someone who makes 200,000.
3. Can I use a federal employer number instead of a social security number to get a better credit rating? No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot? No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two? If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider: First, you have to watch credit limits. The general ideas is that the more of your available credit that you use the lower your score. For instance, imagine that you have five credit cards with different limits and in each case you have used 50 percent of the amount available to you. You then combine all cards into one card with a big balance but now you're using a far-higher percent of your available credit line, say 90 percent. A better approach is to keep balances low and pay off credit cards as you can. Second, while it makes sense to pay down credit card debts, it may not make sense to close accounts. The reason has to do with credit card history. The general rule is that the longer your history, the higher your score. The result is that you may actually want to keep older accounts open even if they're not used.
6. I'm good about paying off credit cards but not some other bills. Will this impact my credit? Yes. First, many credit cards include a so-called "universal default" provision. This means if any bill is late or unpaid, the credit card issuer can raise your rate. Second, other bills in addition to credit cards show up on credit reports and negative items are reflected in credit scores.
7. My mortgage payment is due on the 1st of the month but I'm allowed to pay as late as the 15th without penalty. If I pay on the 14th will this show up on my credit report? No -- but be careful here. A debt is considered "late" for credit reporting purposes only if it's at least 30 days overdue. However, some unscrupulous lenders charge excessive fees and may even raise interest rates if payments are even a day late. If you have such financing you should consider refinancing to get better terms. As to that mortgage payment, lenders typically provide a payment grace period because checks may be delayed in the mail and payment days may fall on weekends or holidays. However, since the bill must be paid anyway, it's absolutely best to pay either early or on time. You may find if you have a good payment record with mortgage lenders that they will be helpful if you run into problems. Example: Your mortgage payment is delayed in the mail and arrives after the grace period. A late fee is charged. You call the lender, they look at your payment history, conclude something is wrong and waive the fee. In other words, you get the benefit of the doubt because you're credible. Does this happen? You bet.
8. How often should I check my credit? Given the growing problem of identity theft -- the Federal Trade Commission says there were more than 250,000 complaints last year -- it makes sense to check credit reports regularly. The good news is that you can get three free credit reports per year, one from each of the major credit reporting agencies, without charge, by going to AnnualCreditReport.com. In addition, the Federal Trade Commission says under federal law "you're entitled to a free report if a company takes adverse action against you such as denying your application for credit, insurance, or employment and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft."
9. What should I do if I feel a payment will be late? Many creditors such as mortgage lenders, credit card companies, auto finance organizations and utilities now have several options for quick payments. You may be able to pay online, pay over the phone or pay by overnight delivery.. However, it's wise to get quick payment information now, before it's needed. For instance, some creditors have one address for regular payments and another for overnight deliveries. If you feel a payment will not be made or will be more than 30 days late, contact your lender immediately. It's often possible to work out an accommodation if you begin working with the lender as soon as possible.
10. Can I get a mortgage after a foreclosure or bankruptcy? Foreclosure and bankruptcies are serious matters which are likely to make access to mortgage financing difficult if not impossible for several years. However, some borrowers are able to get mortgages again with some speed. How? While foreclosures and bankruptcies are the worst credit events, they are not necessarily caused by consumer mismanagement or misdeeds. People have health emergencies. Companies close. Areas are devastated by natural disasters. The bottom line is this: Mortgage underwriters want to know more about you and your situation. While loans may be approved automatically, declined loans are reviewed individually. Before looking for a home, speak with mortgage lenders if you have had a foreclosure or bankruptcy. If you had a good credit record and encountered a financial catastrophe outside your control, lenders may be able to provide financing once credit has been re-established. Individual lenders can provide specific advice and information. As the expression goes, it can't hurt to ask. Peter G. Miller is a syndicated real estate and personal finance columnist who appears 70 newspapers. For more information about mortgages, please visit Mortgage Lenders Plus.com
Auto Refinancing and Car Loan Guide
This comprehensive car refinancing guide will help you find the best auto refinance package for you. Included are the important steps needed to take to understand car loan refinancing and what you should know if they are considering refinancing your car loan. This site was designed to help with decisions regarding finance and how you can work together with a finance company to find the best option for you. After receiving e-mail from disgruntled people who want help to get out of their current situation with a finance company, we decided to feature information regarding these issues. Only recently are people becoming aware that they don't have to put up with finance companies astronomical fees and can save themselves thousands of dollars by refinancing an auto loan.
Why you should consider refinancing your Auto LoanThe thousands of dollars that will be saved should be a great incentive for applying for car loan refinancing. There are many reasons why people may get stuck with an auto loan plan that may require astronomical payments and incredibly high interest rates. One of the reasons is the when they may be tricked into a finance plan by car dealers who offer finance when you buy the car. At the time the person may have been overwhelmed with the prospect of a car that they may not of taken the time required to calculate the costs required to make the repayments. It is only after the contracts are signed and the repayments start going out that the person realizes they cannot make the costly repayments. Another example is when a person with a bad credit report may buy a car with high interest, as this at the time may have been the only option they had. Many people may wish to change the payment plan on their auto loan and wish to make the period of time that the loan is repaid longer or shorter. Auto refinance is great for this. You can make a plan that best fits to your life and still leave you financially stable. There are many refinance car loan companies that can custom make a repayment plan suited to you.
When to Apply for Auto Refinance
When a person signs up with a refinance company the following steps happen. The new refinancing company will pay the loan and existing balance to the existing finance company. The refinance company will send an invoice to the customer which includes a new, lowered interest rate. With a lower interest rate the customer can sufficiently pay off the loan for the time period that has been agreed upon. It should be noted that when a person signs up with a refinance company, the interest that may of occurred with the existing company will not have to be paid. This is because only the past interest can be accounted for. After this the customer does not need to deal with their previous finance company anymore.
How much money can I save?
The following is an example of how much money can be saved with car loan refinancing. A person may buy a car and obtain finance with an interest rate of 8.9%. Repayments have been made since then and the person is good financially. After applying for auto refinance the interest rate drops to 6% and then the loan will be paid off quicker.The following example includes the pricing estimates of the above situation. The car is brought with a finance package of $10,000, an interest rate of 8.9% and 60 months to be paid. Each monthly payment will be $207.10 and a final interest bill of $2,426.74. The car is refinanced with an interest rate of 6.9%. After this adjustment the monthly payments are $197.54 and the interest bill will be $1,853.05. The savings would be $573.09!
Refinancing your car loan
Explore the internet for a company with the best options for your current situation. Keep an eye on hidden costs and be aware of all terms and conditions. Use a calculator to get the accurate costs of any car loan refinancing plan. When you have chosen an appropriate company, you can now complete the application online. There is no obligation to do this. It is done so you can get the best auto refinance rate. Remember the reason you are doing this is to save money. We advise you to fill in applications to find the best rate. Finally proceed with the best refinance rate. It is not ideal to stay with current finance company. You can always find a better rate from a competing company.
Why you should consider refinancing your Auto LoanThe thousands of dollars that will be saved should be a great incentive for applying for car loan refinancing. There are many reasons why people may get stuck with an auto loan plan that may require astronomical payments and incredibly high interest rates. One of the reasons is the when they may be tricked into a finance plan by car dealers who offer finance when you buy the car. At the time the person may have been overwhelmed with the prospect of a car that they may not of taken the time required to calculate the costs required to make the repayments. It is only after the contracts are signed and the repayments start going out that the person realizes they cannot make the costly repayments. Another example is when a person with a bad credit report may buy a car with high interest, as this at the time may have been the only option they had. Many people may wish to change the payment plan on their auto loan and wish to make the period of time that the loan is repaid longer or shorter. Auto refinance is great for this. You can make a plan that best fits to your life and still leave you financially stable. There are many refinance car loan companies that can custom make a repayment plan suited to you.
When to Apply for Auto Refinance
When a person signs up with a refinance company the following steps happen. The new refinancing company will pay the loan and existing balance to the existing finance company. The refinance company will send an invoice to the customer which includes a new, lowered interest rate. With a lower interest rate the customer can sufficiently pay off the loan for the time period that has been agreed upon. It should be noted that when a person signs up with a refinance company, the interest that may of occurred with the existing company will not have to be paid. This is because only the past interest can be accounted for. After this the customer does not need to deal with their previous finance company anymore.
How much money can I save?
The following is an example of how much money can be saved with car loan refinancing. A person may buy a car and obtain finance with an interest rate of 8.9%. Repayments have been made since then and the person is good financially. After applying for auto refinance the interest rate drops to 6% and then the loan will be paid off quicker.The following example includes the pricing estimates of the above situation. The car is brought with a finance package of $10,000, an interest rate of 8.9% and 60 months to be paid. Each monthly payment will be $207.10 and a final interest bill of $2,426.74. The car is refinanced with an interest rate of 6.9%. After this adjustment the monthly payments are $197.54 and the interest bill will be $1,853.05. The savings would be $573.09!
Refinancing your car loan
Explore the internet for a company with the best options for your current situation. Keep an eye on hidden costs and be aware of all terms and conditions. Use a calculator to get the accurate costs of any car loan refinancing plan. When you have chosen an appropriate company, you can now complete the application online. There is no obligation to do this. It is done so you can get the best auto refinance rate. Remember the reason you are doing this is to save money. We advise you to fill in applications to find the best rate. Finally proceed with the best refinance rate. It is not ideal to stay with current finance company. You can always find a better rate from a competing company.
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