May 10, 2013
Obtaining zero down auto loans might seem impossible if you have bad credit but it can be done. You’ll just have to work a little harder when it comes to finding a perfect dealership that accepts bad credit. There could be 2-4 dealerships in your city that will accept bad credit so it’s always a good idea to call around. Ask some of your friends where they got their first car when they were younger and didn’t have good credit. They’ll give you a few places that you can use so cross your fingers that they are still in business.
In order to obtain a zero down auto loans, you can always get a co-signer. This is basically a person who will take responsibility for the vehicle if you do not pay. Being a co-signer is a huge job and most people will not want to sign because they don’t want to take the risk. So seriously, how can you get someone to sign for you? This is fairly easy – just ask one of your family members or a very close friend. There are some people who are willing to sign and they know where to find you in case you don’t pay up. This is why you should make sure you can get a car you can afford.
There are many cars available on the lot. Remember that you will have to pay monthly so the car can be anywhere from $150 to even $500. We don’t recommend paying $500 a month for a vehicle because most of the time, this will be out of your budget. Low payments are considered to be anywhere from $150 to $250. Middle range goes up to $350 while anything more than that might seem ridiculous for someone who is not expecting to pay a lot of money. Most cars that are brand new will be on the high end and this is why a used car is best.
To get zero down auto loans, you should be able to show a good proof of income. Since you have bad credit, the dealership will need to prove that you are working each day and that your income is more than the car payments are each month. Remember to write everything down accurately on your application, otherwise you could be denied. You obviously don’t want to purchase a car that you are not able to pay for. A car salesman will only show you cars that fit your budget and if you want something that is a little better like GPS or some car that is upgraded, this may be difficult to get.
Almost everyone pays a down payment at the dealership. Those with good credit don’t have to. Since you are a liability, you probably will have to put a down payment on the car. Now, you can always talk your way out of this. If you have an old junk car, you can always trade this for the down payment. Most dealerships will be able to accept these car and sometimes sell them for parts to other companies. They will look over your car and see if it’s worthwhile.
No one wants to give a down payment most of the time and some people will try to get around it when it comes to zero down auto loans. You can simply say to the dealer that you have good credit so you won’t be a problem in case something were to happen. They can work with you and even lift the down payment so you’ll be only paying for the car each month. A down payment is only used to protect the dealership in case anything happens to the car. People with bad credit will almost always have to pay a down payment before they actually get to drive the car anywhere but this is not the case for you so don’t let a car salesman push you for a down payment. Most dealerships can do without.
Overall, it is always a good idea to get everything organized before you walk into the dealership and demand cars with zero down auto loans. Gather up all of your income stubs and a recent credit report if you don’t want to wait for the credit approval process. You can also call them to give them your details and they can run the credit approval beforehand. Otherwise, you will need to wait a few days and this will delay the process of getting a vehicle so if you need a car quickly, always make sure you are prepared. By showing them all of your documents, they can give you a car without any down payment.
, personal finance
February 27, 2013
Although your bad credit score can sometimes feel like a rain cloud looming over your chances for financial freedom, there are opportunities for the sun to shine through. It’s not all bad news when it comes to your poor credit score, because despite common misconceptions, you can receive a credit card, apply for student loans, and access emergency cash. And the best part of all is that it is always possible to repair your credit score.
Credit Card Options
Applying for a credit card is a great way to build your credit, but unfortunately your bad credit score can limit your credit card options. Don’t be discouraged though, because there are multiple ways in which you can still receive a credit card despite your low score.
People with bad credit often take the secured credit card route. A secured credit card functions much like an unsecured credit, but you pay a security deposit and a monthly fee. You also will most likely experience a lower credit line, which reflects the value of your cash deposit. Only consider this option though if you can pay your monthly dues, otherwise you will very quickly rack up late charges and high interest.
You can also apply for a credit card with a cosigner who has a good credit score. It’s important however that both you and your cosigner understand that if you fall behind on payments, your delinquency will affect not only your credit score, but also your cosigner’s credit score. You won’t want to jeopardize your cosigner’s score on top of your own, so refrain from involving a cosigner if you are unable to make timely payments.
Students Loan Opportunities
Fortunately, you’re not out of luck when it comes to financial aid for higher education. Although you may not qualify for all loans, you do have options.
One option you can turn to is a private student loan through lenders such as Chase, Citibank, and Wells Fargo. In the same way that you can apply for a credit card with a cosigner, most of these lending houses will require a cosigner with an upstanding credit score. In this case, the cosigner agrees to pay for the loan if you fail to make payments. These loans are often associated with higher interest rates though, so only sign on if you understand all of the terms and conditions.
You could also apply for scholarships and grants to receive funds for school. Institutions will award you scholarships based on your athletic or academic performance, while they link grants to your financial situation and need. Scholarships and grants are more attractive options because they are monetary gifts, which you do not repay.
Emergency Loans Access
While your bad credit score will make it difficult to take out traditional loans from banks and lenders, there are bad credit loans, which can help cover life’s unexpected emergencies. Payday Loan lenders usually do not review your credit report, but they do generally expect you to repay the loan by the following payday. Failing to meet payment deadlines will result in expensive fees and high interest, so it is best to only take out this loan if it’s a one time situation, if you understand the terms of the loan, and if you are able to repay the loan.
You Can Always Improve Your Score
It’s never too late to start building your score, and because it can take years to recover from financial delinquency, it’s best to start fixing it now. Begin by repaying any debt that you owe. This may mean contacting your creditors to establish repayment plans, but be sure to demonstrate your willingness to pay back the money.
While you will want to continue using your credit cards to build your credit, use them sparingly and only for small purchases that you are capable of paying on time. In addition to paying your credit card bills on time, you should strive to pay your rent, utilities, and any other bills on or before their due dates as well.
Make a conscious effort to cut back on spending, save money, and consider consulting financial advice if your finances seem unmanageable. Bad credit is not a permanent situation, so take the time to improve it so that you can experience a brighter financial future.
Chloe Mulliner is a writer and editor for several consumer websites related to credit and personal loan options.
, Credit Score
, personal finance
February 16, 2013
Dropping the financial ball is something that may happen inadvertently when we allow debt to go farther than we can run with it. Staying away from debt is sometimes hard because countless expenses sum up through the month and control can easily slip out of our hands. However, you can prevent this from happening and yet stay away from debt by simply analyzing your actual financial situation and the way that your organize your expenses.
Planning is the Key
You cannot anticipate unexpected expenses coming your way, but you can plan those that occur regularly to find out how much money you have to work with for something else. Creating a monthly budget is a great aid, because you cannot only plan the payment of bills, food, gas and daily living expenses, but also serves to determine how much money you can save, and make that money a cash fund to be used for unexpected expenses rather that borrowing money when an emergency takes place.
Avoid Loans Above All Else
No matter, if you are considering taking out an “inoffensive” payday loan, a personal loan, car loan, business loan, mortgage or home loan. Loans are usually the starting point for major financial problems even if you have the certainty that you can repay your debt. People often forget that if they are borrowing $100 will not have to repay $100 but a considerable amount after interest rate, finance fees and particularly with payday loans, very high interest rates.
Plastic Money is Dangerous
Another source of debt can be found in your credit cards. The more credit cards you have, the easier it is that you can become trapped in debt sooner or later. Be wise to use your credit cards only when you need them, even if you have only one, but if this not your case, determine which one charges the least in interest rates and make this your main credit card, but only to be used when you need are forced to pay with a credit card.
Cash is Still the Leader
No matter if people turn their heads back to you when paying with cash in a restaurant, do it anyway and you will be far from dropping the financial ball, as they probably have done sometimes. Cash is worth more than plastic money because it has immediate acquisitive power, can be use to buy almost anything, and does not generate interests.
If you stick to these simple principles, you will be on the right pathway to stay away from debt, and you can learn many other tips that will enhance your household economy.
, financial planning
, personal finance
January 18, 2013
A lot has been written about strategies to get out of debt, plan a budget, and stick to it. If you want to be one of those success stories of people who have clawed their way out of debt on their own, that’s great. If you’re digging out of a particularly deep hole, or your shovel is disproportionately small, you may quickly realize that getting out of debt on your own is an all but impossible task.
As calls from creditors start harassing you at all hours of the day and you watch your monthly statements steadily increase, it may seem as if bankruptcy would easily solve all your problems.
This is rarely the case, so today we’re going to talk about the range of professional options available to you. In Canada debt program options include: Credit Counseling, Debt Consolidation Loans, Debt Settlement, Consumer Proposals, and finally, when all else has failed, Bankruptcy.
A professional brings years of experience, a greater knowledge of your options, and, most importantly, a non-biased approach to your finances. They’ll help you examine your income and expenses and come up with a short and long-term plan to get you out of debt and keep you out.
This may also include negotiating with creditors in an effort to reduce the amount of interest you pay, lowering the monthly payments to make them more manageable, and lengthening the deadline for payback.
One thing credit counseling won’t help with is actually reducing the amount you owe. That’s fine – you DO owe the money, but if you’re truly in trouble, you might need a more drastic option.
Debt consolidation takes all of your debts and pays them off under a single loan. That loan is now your only debt. This is incredibly helpful because you’ll only have one monthly payment, which is easier to track, plan for, and pay on time. It’s also possible to negotiate a lower overall interest rate. On top of all that good news, you can also lower your monthly payment to something you can manage more easily.
The drawback to a lower monthly payment is that it could end up taking longer to pay your debt consolidation loan off than it would just paying your debts back.
Hiring a debt settlement specialist to negotiate your debts might be the best decision you can make. By speaking to each of your creditors, they’ll work on your behalf to lower the total amount you owe, lower interest rates, and set up comfortable monthly payments.
Despite it’s rather passive name, this is an official agreement between you and your creditors to settle your unsecured debts. You’ll work with a licensed bankruptcy trustee, and this option is pretty much the last step before bankruptcy and WILL negatively affect your credit score and borrowing ability.
- Learn What’s Best For You
Speak to a professional at http://debt.ca and find out which option is best for you.
Tags: Credit Card Debt
, Debt Problems
, financial planning
, personal finance
January 9, 2013
For some reason, most of the marketing behind home ownership leads you to believe that you should be paying off your home for the next 20-30 years. People even have ‘mortgage-burning parties’, where they (symbolically or actually) burn their mortgage documents at the same time that they retire.
If it sounds crazy to take over 20 years to pay for something, don’t worry, it’s absolutely possible to pay off your home faster.
Interest Rates Are Important
A lot of people assume if you’ve been dealing with a bank for most of your life that they will be the best option for getting your mortgage. This is not always the case and it’s imperative that you shop around. Even a 0.05% difference on the interest rate will mean thousands of dollars over the life of your mortgage.
Websites like http://mortgagerates.ca are fantastic for comparing lenders (even those you’ve never heard of) and making sure you’re getting the best rate. Don’t be afraid to negotiate with your bank. If you prefer to keep your accounts in the same place, at least explain to your rep at the bank that you have better options and ask if they can match them.
Your Mortgage – Pre-payment Options
Interest rates aren’t the only consideration for your mortgage. If you want to pay this off aggressively you’re going to need some pre-payment options. There are typically two ways you can pay down your home faster.
- Monthly payment options – most mortgage lenders allow you to modify the amount you’re paying every month. This is usually listed as a percentage of your payment. For example, if a lender allows you to bump up your payment by 25% and your current payment is $1,000 a month, you’ll be allowed to increase that to $1,250. You can get mortgages that allow up to a full 100% increase.
- Lump-sum payments – You should also have the option to contribute lump-sum payments whenever you want. These are great for things like tax refunds, bonus cheques, and other found money. These are typically offered again as a percentage, this time of your total mortgage amount, and range from 10% to 25%. So if you owe $300,000 on your mortgage, you’d be able to contribute up to $75,000 a year (at 25%) on top of your regular payments.
Finding The Money
You might be laughing at the idea of having an EXTRA $75,000 a year kicking around, and yes, it’s probably not going to be that much. What it does is give you options.
If you really decide to get serious about paying off your home, it’s time to prioritize. Remember that every dollar you put towards it now will save you all of that compounding interest in the future, so the time to make the most sacrifices is right now.
Make cuts wherever you can. Use an online mortgage payment calculator to calculate how much every extra payment will save you in the long run – this will keep you motivated.
, home loans
, personal finance