The Interest Rate You'll Pay for an Auto Loan Depends on Your Credit

When it comes time to purchase a new or used car, one of the most important factors that will determine how much you end up paying is the interest rate on your auto loan. Your credit score plays a major role in determining what interest rate lenders will offer you. Understanding how your credit impacts auto loan rates can help you get the best financing deal when buying a car.

This article will explore how credit scores influence auto loan interest rates. We’ll look at the average rates offered for different credit score ranges and provide tips on how to get the lowest rate possible for your credit profile. Read on to learn more about how your credit affects car loan rates.

How to Get a Car Loan with Bad Credit

Introduction 

Buying a car is an exciting experience, but getting approved for an auto loan can be challenging if you have bad credit. A low credit score indicates to lenders that you may be a high-risk borrower. However, there are still financing options available if you have poor or no credit. This comprehensive guide will walk you through everything you need to know about getting a car loan with bad credit.

Understanding Credit Scores

Your credit score is a three-digit number that gives lenders an idea of how reliably you pay back debt. Scores range from 300 to 850, with higher scores indicating better creditworthiness. Here is a breakdown of the credit score ranges:

- 800-850: Exceptional 

- 740-799: Very Good

- 670-739: Good

- 580-669: Fair 

- 300-579: Very Poor

The Absolute Best Student Loans For Graduate School Success

Graduate school can be an incredibly rewarding experience, opening doors to new opportunities and advancing your career. However, it also often comes with a hefty price tag that can leave graduates saddled with overwhelming student loan debt. 

Navigating the options for financing graduate school and choosing the best student loans does not need to be a struggle. With proper planning, research and strategic borrowing, you can fund your graduate degree while minimizing debt. This comprehensive guide breaks down the best approach to pay for graduate school in a strategic order, starting with "free" money and progressing to federal and then private student loans.

Car loans you can’t afford the next subprime

Editorial Cartoon by William Warren by  Robert Romano: “It’s just debt for debt’s sake, not to help build future production or earnings, but to simply fuel consumption.” That’s how Americans for Limited Government (ALG) President Bill Wilson described the latest scam by government and financial institutions to boost “growth.” Having exhausted the market for crappy loans in housing and college students, now banks are turning their attention to the rapidly growing industry of subprime auto loans — that is, loans to borrowers with bad credit, yielding higher interest rates, and are more likely to default.

Actual auto expenses or standard mileage rate? Which business deduction method will cut your taxes more?

Has all the attention given Google's driverless car got you thinking about your auto? If you're a business owner, it could be the perfect vehicle.

It has no steering wheel, accelerator or brake pedal to mess with. You use your smartphone or tablet app to summon the vehicle, set your route, get in and go. Then just sit back and enjoy as the Google machine takes you to your destination.

If it's to a business meeting, you can use the time you otherwise would be driving to polish your presentation. Or you can call your spouse to ask him or her to pick up dinner or the cleaning or the kids. Or you can just relax so you'll be in the best frame of mind for your important professional encounter.

More Pinoys Purchase a New Car with help from Financing

In the first quarter of this year, Bangko Sentral ng Pilipinas (BSP) reported that auto loans increased by 26% to P244.61 billion from P194.37 billion the previous year.

The demand for car loans in the Philippines will continue to increase as more Pinoy car buyers see financing as a better option when purchasing a new car, Carmudi said.

In its recent study, the company reported on the growth of car financing in the Philippines as well as other emerging markets. The white paper entitled “Car Financing in the Philippines” provides a look into the current and future state of car financing and how consumer attitudes toward credit have changed in recent years.

5 Ways To Pay Off Your Car Loan Sooner

Getting rid of debts like car loans sooner rather than later can be a solid investment in your future for a number of reasons. It not only improves your credit history, but means more money in your bank account, so if you’re lumbering away under the cloud of debt, here are five ways to ease the burden and help pay off your car loan sooner.

5 Financial Tips for Recent College Graduates

As a recent college graduate, I know how intimidating personal finance can be. Fortunately, there is a wealth of (free) knowledge online to serve as a starting point for a sound financial education. Here are a few tips I've gathered from friends, family, experience, and online resources to help college graduates (and non-graduates) from any background.

1. Maximize savings on large, recurring payments

There are dozens of sites and apps to help you navigate and keep track of spending – personally, I like Mint.com. Take a good look at your credit and debit card spending and calculate where your money is going as a percentage of your total spending. The biggest portions are your heavy-hitters: rent, food, insurance, loan payments, transportation, etc. Rent is commonly the single most expensive bill you will have to pay on a monthly basis. Keep in mind that it may be unwise to pay more than about one-third of post-tax income on rent. First, be open to trade-offs. The apartment that you're touring may not be in your dream neighborhood, but let's say it's $200 cheaper per month and transportation is only $40 more per month. That's nearly $2,000 in net savings per year. Second, sign a longer-term lease. A year-long lease is generally given at a lower rate per month than a shorter-term lease. If you were able to live in a college dorm room for a year, you can sign for an apartment for a year. Research your own heavy-hitters and look to reduce them where possible.

The Student Loan Scam

Full disclosure: I am currently paying federal student loans that I obtained while in college. I never finished college and it was never a huge amount (about $6000), nor do I expect any kind of reform to ever benefit me, but it would be unfair to say I’m a completely disinterested party.

That said, student loans are big business in the United States. The federal government makes over $40 billion in profits on student loans annually, to say nothing of what private firms make. There is currently more than $1.2 trillion in outstanding student loan debt. To put that in perspective, the total amount of all credit card debt in the US is about $900 billion. It’s not a small amount of money.

8 Ways to De-Corporatize Your Money

1. Ditch the Cards

All electronic transactions siphon money out of your community to some extent, so try the human approach and bank in person. Pay in cash or, second best, write a check. If you have to use plastic, choose debit. Your local merchants lose some of their profit any time you use a card, but they pay up to seven times more in fees when it’s a credit card. And studies show people spend 12 to 18 percent more when they use cards instead of cash.

2. Move Your Debt

Already broke up with your mega-bank? From credit card balances to car loans to mortgages, mega-banks make far more money off your debt than your savings. Refinance your debt with a credit union or local bank and let your fees support your community. Be wary of “affinity credit cards,” which donate a certain amount per purchase to good-hearted organizations but often are connected with a mega-bank.

5 Ways to Make Your Dollars Make Sense

Americans’ long-term savings in stocks, bonds, pension, life insurance, and mutual funds total about $30 trillion. But not even 1 percent of these savings touches local small businesses, the source of half the economy’s jobs and output. Is it possible to beat Wall Street’s 5 percent long-term performance by investing in your community? The answer is a resounding yes!

Co-op members who lent to the Weaver Street Market in North Carolina and to the Seward Co-op in Minneapolis earned well over 5 percent per year. Many outside investors who bought preferred shares of the Coulee Region Organic Producers Pool, a co-op of organic farmers, are still receiving an annual dividend of 6 percent. Equal Exchange has paid a dividend to its preferred shareholders averaging above 5 percent for 22 years. Investors who participate in New Markets Tax Credits automatically get a tax credit equal to 5 percent of their capital for each of the first three years and 6 percent for the next four—even if the investment generates no real return whatsoever. Burt Chojnowski’s returns have been good enough to convince outside investors to put more than $300 million into his local companies and projects over 25 years in Fairfield, Iowa. Most of LION’s deals in Port Townsend, Washington, are paying between 5 and 8 percent returns per year. Microlenders on Prosper.com are averaging an annual return of 10.4 percent. Jeff Haugland has paid the local shareholders of Community Grocers in Mount Ayr, Iowa, an annual dividend of 5.25 percent.

Buying a New Car fo Back to School? Some Tips to Consider!

Labor Day is approaching quickly, coeds are off to school, and summer car buying season is in full swing  - with current auto loan interest rates holding steady in the low 4%,(1) consumers are regaining confidence in the economy,(2) and venturing to dealerships looking to take advantage of late 2013 vehicle model deals.

The decision to purchase a vehicle involves a number of budget considerations, and CarFinance.com has created key tips to empower consumers with detailed budget know-how throughout their vehicle selection process- they are especially important for college students, who may be living on their own for the first time!.

Items to calculate before signing on the dotted – or electronic – line:

Are Online Cash Stores More Expensive Than Offline Stores?

Online cash stores offer a variety of rates. More often than not, they are less expensive than offline stores. Of course there are companies that offer extremely high rates, but you can avoid them if you shop around. In fact, that is one of the biggest advantages to online stores – you can compare rates in minutes to find the lowest finance fees.

Fees To Look For

Most cash stores charge a flat fee rather than a percentage of your payday loan. Some online cash stores also charge an application fee. By shopping around you can find lenders who don’t charge this. And some of these lenders will waive the fee for first time borrowers.

When you are comparing fees, you should look at the APR or annual percentage rate. This number is what the loan would cost if you carried it for an entire year. While most customers make their payment in less than a month, the APR allows you to make quick comparisons.

Watch Out For High Rates

Don’t sign up for the first cash advance offer you get. Shop for rates first. You can do this by calling around, but an easier way is to look up rates on line. You can find the APR or fees either under ‘Fees’ or the ‘FAQ’ section. If you can’t find numbers to compare, email the company.

You also want to pay attention to how long the loan fees are for and make sure you compare the same numbers. For instance, if you need a cash advance for 14 days, look at the finance fees for the 14 day period with each lender.

Understand Payment Plans

Another way lenders can take advantage of your situation is by delaying your payments. Lenders who only deduct the minimum payment rather than the total amount will charge you more in finance fees. Initially these lenders may have low rates, but by adding more time to your loan, you rack up finance charges.

If you choose to go with one of these lenders, make sure you set up a full payment on your payday. That way you will pay the minimum finance fees, keeping money in your pocket.

source:finance-slot.blogspot.com

Check Into Cash

What are Cash Advance Services? There are plenty of reasons that a person might need a little extra money from time to time, and there are plenty more reasons that they can't wait for their next paycheck to get it, which is why cash advance services may be a convenient alternative.. If you are looking for a way to get a little extra money for unexpected emergencies like car repairs to purchasing needed medicine, a cash advance might be the way to go. So, what are cash advance services? These businesses exist to offer you the cash that you need right now. They take either a personal check or postdated check (depending on state requirements) for the amount that they are lending you, plus a fee, and then they present that check for payment on your next pay period. This is one option to get that much needed cash in advance before your next paycheck. Losing track of when your bill dates can lead to a shortage of cash that otherwise might not have been a problem. When this happens, instead of letting things fall by the wayside until we can pick them up again with our next paycheck, every day people like yourself may opt to visit a cash advance store for the money that we need today. Many people use cash advance center all the time for life's unexpected occurances. As long as you have the money to pay back a cash advance and the fee from your next paycheck, cash advance services may offer a short term solution to money shortfalls between pay periods. 

 Getting a cash advance online is simple Thanks to the world of online lending, you can now get cash advances online in only a few easy steps.

1. The first step in getting fast cash online is to find a website that offers the service. A simple search engine query will reveal dozens of websites. Some will be big names in the payday loan industry, and others are sure to be smaller, new players in the online lending industry. While the rules and regulations of these lenders might vary, they all work in essentially the same way. 

 2. You fill out an online application, and once approved, you will receive your money via a direct deposit into your savings or checking account usually by the next business day. Some sites may ask you to prove that you are employed by faxing a copy of your most recent pay stub from work so they can verify how much you make and how frequently you get paid. 

 3. Once you have been verified, you are ready to have your loan processed. Please be aware, also, that these loans do carry fees. If you cannot repay both the loan and the attached fees, do not complete the application. 

 4. Payday loans are a great short term financial solution, but if you find yourself short of cash on a regular basis before your next payday, it is best to consult a financial professional to work out a budget you can live with on a regular basis. 

 5. Keep in mind that payday loan should only be used in emergency situations. Using the funds from a payday loan on expensive gifts, vacations, or other unnecessary items is never a good idea.

6. Getting a cash advance online really is as simple as it sounds. Use it responsibly, and you will achieve the financial solvency you desire.

source:finance-slot.blogspot.com

Cars and Credit Reports

The Problem

I was driving home from the store the other night when I noticed a license plate that made me laugh to myself and then I proceeded to feel sorry for the poor sap driving. The plate read "0 DOWN". It was a white, shiny, new Ford Explorer (probably an 06'). Here's what really got me about the caption: Not only did this consumer purchase a brand new vehicle with no money down, but he was proud of it. DUMB! Commercial advertisements and society as a whole embeds the "Buy Now, Pay Later" method into our heads and it works so well that around 90% of all consumers who purchase new cars do not put $5 down on the vehicle before signing the papers. The sad fact is, is that the average new automobile loses $3,000 as soon as it leaves the lot. Technically, you have gone into debt for something that loses value before you even use it. As if this wasn't depressing enough, the less money you put down on a car and the worse off your credit is, the more you pay for the car. If this isn't one big sand trap I don't know what is!

The Role of Your Credit Report

Your online credit report is affected 2 ways when you buy a new car with no money down. First let's look at the role it plays after you decide you NEED that shiny new sports car. The mass majority of consumers are thinking of one thing when they sit in the 'sales chair' to go through the paperwork: driving the car home (man this is bringing back some bad, bad memories). In order to do this you will need to finance the vehicle which requires pulling up your credit history and your credit report. This can easily be done online right in the sales office while you look around to make sure no one else tries to sneak off with your new toy. The worse off your credit report is, the higher interest rate you will pay. (This is fine though as long as you can still afford to buy food every other week and pay a few bills here and there.) The other role that your credit report plays in this game is the after-effect. The average new car buyer's car payment is 25-30% of their total income. This creates a nice, big road block on your credit report in itself for when you are ready to make another large purchase. Not to mention when you fall behind on even one payment and your credit file takes a hard blow. Try to keep these factors in mind next time the kid in you tries to make a financial decision.

The Solution

Well you're not going to like the best solution but here it is anyway: PAY FOR THE CAR IN FULL! If you saved the car payment every month in a good money market account; not only would you save time and money, but when you walked into the sales office with piles of hundred dollar bills you would get quite a deal! Okay, so you're more likely to win the super lotto than do that right? Well here are a few ideas. As long as you practice a few you might get ahead of this nasty game a little bit or at least protect your online credit report. First, consider getting a 2 or 3 year old car. You can still get a shiny one and the previous owner will have taken the major depreciation of the vehicle passing the savings directly to you. Second, if you can, try waiting and searching to find the best deal possible. Trust me, there is more than 1 of those cars in the market. Third, put something down. Anything! For starters you could put down 10 to 15%. This will lower your monthly payment, lower your interest rate and maybe even cut your payoff time down. Lastly, get a bargain. Don't settle for the asking price by any means. Be patient and keep control of your focus. One definition of maturity is learning to delay pleasure.

source:finance-slot.blogspot.com

Cash Advance - Money When You Need It

So you need money today, but your bank account has seen better days.  Perhaps you have an emergency you need to take care of, but the money to do so is nowhere to be found.  In both of these situations a cash advance may be just what the financial doctor ordered - a way to get the cash you want today without going through the hassle of dealing with banks and credit card companies.

Cash advances typically come in two flavors:  You can get a cash advance that you will pay back at a certain period in the future, with a nominal interest charge; or you can get a cash advance against a tangible asset that you own - say an insurance policy or annuity.  Either way, you are getting the money you need today instead of having to wait for weeks (or years) down the road to get it.  After all, what good does a $10,000 annuity do you five years from now when you need to get your car fixed today?

There are a number of cash advance organizations out there who will work with you to find the solution that is best for you.  Typically, many people utilize the services of a cash advance organization that works much like a bank (without all the hassle):  You fill out a small application, they process it immediately and the money is put into your account.  The big difference is that, unlike a bank, the entire process is usually over and done in a few minutes!

Typically, cash advance companies will advance you up to about $2,000 - $3,000 depending our your situation and finances.   There are some cash advance companies out there that will loan more based on assets you may own that you want to take an advance on.  Typically, such assets include things like insurance policies, annuities or lottery payouts.  Many times people may hold such "future value" money items, but need the money for them today - after all, what good is money in the future if you may not even be around then to spend it?

Most cash advance companies also offer very flexible repayment options.  You can either pay them back in one lump sum, or break the payments up over time.  Some cash advance organizations even offer you the ability to pay the loan back through automatic withdrawals from your checking or savings account, making the process even easier.  Almost all of them give you the flexibility to determine what date you want the withdrawal to happen on - saving you from having to deal with potential NSF fees.

So if you find yourself a bit strapped for cash, or just want to take a well deserved vacation and need a few extra dollars, consider checking into cash advance services that are offered both online and locally.  You'll find competitive rates, great service and most of all the money when you need it without the hassle of dealing with the bank, relatives, credit card companies - and most of all - your mom or dad!

source:finance-slot.blogspot.com

Consolidate Debt – Lead A Debt Free Life!

If you have accumulated innumerable debts over a period of time and are not in a sound financial position, we can lend you a helping hand! We will show you how to get over the debt problems easily. Debt problems if not handled carefully in the initial stages can affect the credit history of the borrower negatively. 

To start with, you should look out for a debt consolidation plan online which can help you get a loan at a lower rate of interest. Searching online will help you get the best deal on loans. Also, concentrate on paying back the debts in easy installments. 

Debt Consolidation Loan picture by simplydebtsolutions.org.uk

Most importantly, stop immediately using credit cards. Credit cards are a strict no-no for any debtor. Start paying by cash for whatever payments you have to make. This will help you be more responsible towards your payments and also keep a track of how much you can actually spend.  

Consolidating debts helps you get a better rate of interest on the loan amount. Any borrower would take up the option of a lower rate of interest than a higher one on the previous one. You should also keep a track of the debts you owe to all your creditors. Start off with making payments by cash for the ones which you can afford to pay quickly. 

Debt Management Solutions – Get Over Debt Worries!

Stop worrying now if you are overburdened with mounting debts. We will provide you alternatives to get over them easily. Opt for a debt management solution and reduce your debt burden. Debt management solutions can solve all your problems. Be it the debts, credit card debt, utility bills debt, medical bills debt, or any other debt, we have a solution for all. 

You can choose from either a secured debt consolidation loan or an unsecured debt consolidation loan. A secured debt consolidation loan carries a lower rate of interest than an unsecured debt consolidation loan. 

A borrower can greatly benefit from a debt consolidation loan. A debt consolidation loan is nothing but a substitute for numerous debts. A borrower can payback the creditor with one single loan fro all the debts and also get a lower monthly payment. He can also get a longer repayment period on the loan. 

It is also one of the easiest ways to get over bad credit. A borrower with bad credit history too can benefit greatly by opting for a debt consolidation. It is also the easiest means of improving the financial situation.

source:finance-slot.blogspot.com

Comparing Payday Loan Companies Online

Comparing payday loan companies online saves you time and money. By researching rates, fees, and terms, you can find the best cash advance company. According to federal law, payday loan lenders must post their rates and fees so you can make comparisons. 

Researching Rates

Cash advance companies are required to post their rate by an annual percent rate. In other words, they list the lending rate for the whole year. Payday loans are intended to provide a cash advance for a short period, usually just until your next pay period. But if you find you need more time, you can arrange that with your lender.

Listed APR’s do allow you to make quick comparisons of rates since all lender’s have to follow this standard. With a quick check of the numbers, you can find low interest rates. However, that is not the only factor to consider.

Identify Fees

Fees are another way cash advance companies make money. They may come in the form of an application or processing fee. Some lenders will waive this fee if it is your first time using their services. You can also find lenders who don’t charge any fees. These lenders usually charge higher interest rates.

Look for a company that charges low fees. Fees can sometimes cost more than the interest charges. When choosing a payday loan lender, be sure that the interest rates are also low.

Consider Other Factors

You should also consider the convenience of the application process and minimum requirements. There are two types of online applications, fax and no fax. Faxed applications require copies of your picture id, usually a driver’s license, past bank records, and pay stubs. A person will then review your application for approval. A no fax application simply requires you to fill out an application online, which is verified through databases. There is no credit check involved and you can receive a virtually instant approval.

Lenders also vary in their minimum requirements. You may be required to have been employed for two to four months. Other lenders just require you to have a regular income, which could be a social security or pension check. Some lenders check if you have any outstanding checks or payday loans. Others just check that you have an open checking account. So before you sign for your cash advance, check to see that you meet the requirements.

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Comparing Secured and Unsecured Loans

Are you, like many people, trying to make sense out of your financial situation? Looking for a way to make ends meet? Struggling to keep up your monthly repayments on credit bills? If so, you might well be tempted by the widespread offers of consolidation loans and other easily available lines of credit, which promise you an end to your financial worries.

Secured and Unsecured Loans , image source :kathlegocashloans.co.za

Unfortunately, life isn't that simple, and taking out a loan without proper consideration of the consequences can be absolutely disastrous for your future financial health. At the very minimum, you should be completely sure of the kind of loan you're applying for, and what the differences between the types might mean in your particular situation.

There are two major kinds of personal loan, Unsecured and Secured. Here we'll take a brief look at the main features of each, to help you be aware of what you're entering into when signing a loan agreement.

Unsecured Loans

These loans are the most common type, and are what most people think of when considering personal loans. They are usually for small to medium amounts, and are aimed at people with good credit ratings, and the sort of financial circumstances lenders love - a steady income large enough to cover repayments, and no great history of debt problems. To get an unsecured loan you don't have to offer any collateral to guarantee repayment, and so the lenders are looking for someone who represents a low risk. As there is no collateral involved, you don't have to be a homeowner. Rates are often attractive, and compare very favourably with other kinds of unsecured finance such as credit cards.

Secured Loans

These loans are only available to homeowners, as they're advanced on the basis that if you don't keep up repayments, the lender has the option of seizing your home, and selling it to pay off your debt with the proceeds. They are available for much larger amounts than unsecured personal loans, as you may be able to borrow as much as your home is worth or even more, and the repayment term is usually much longer - up to 25 or even 30 years compared to the 5 years which is more common with unsecured loans. Because of the security given to the lender by laying down your home as collateral, the approval criteria are often less strict, so it's easier to be approved, even with a poor credit rating.

Unfortunately this ready acceptance of applicants with adverse credit can mean that the interest rate charged is higher, as the lenders know that most applicants are unable to get finance elsewhere and will be happy to pay a little extra.

So now we've seen the differences and similarities between the two major kinds of loan, but what does it mean in practice? Basically, you should think very hard about turning unsecured debt into secured debt, and you should also consider carefully any attempts made by a lender to upgrade your unsecured loan application into a secured one. After all, defaulting on an unsecured loan will have very damaging consequences for your credit rating, but defaulting on a secured loan would mean losing your home.

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Online Cash Stores Vs. Offline Cash Stores

Personal cash loans are essential during emergencies. If there is an unexpected expense such as a utility bill or car repair, most people whip out the credit cards. Because of high finance charges, and the fact that most consumers have little available credit, using credit cards may not be an easy fix. In this case, obtaining a short-term cash advance loan will provide you with the needed cash.

Using Cash Advance Loan Companies

Cash advance companies are financial institutions; however, they operate differently from banks. If you attempt to acquire a personal bank loan, the bank or credit union will pull your credit and lengthen the process to ensure you meet all requirements. Cash advance companies have easy lending requirements. There are no credit checks. Furthermore, you can have funds within a few hours.

Although personal cash advance loan companies approve most loan applications, companies do require applicants to have stable employment and make a minimum monthly income. Moreover, you must have a confirmable checking or savings account to get a cash advance loan.

Payday Loan Company Options

Individuals hoping to acquire a fast payday loan have several options. Cash advance companies operate online and offline. Local cash advance companies offer convenience. However, if you prefer privacy, applying with a local company may not offer the anonymity you desire.

On the other hand, online payday loan companies offer total privacy. In addition, you can apply for a loan in the comforts of your home or office. The entire process is completed online. When your application is approved for the loan, the cash advance company will notify you through email. Within 24 hours, the funds will be deposited into your checking or savings account.

Online payday companies may request fax copies of paycheck stubs or bank information, whereas other companies are faxless. If using an online cash advance loan company, you should review websites that offer a recommended list of reputable online payday loan companies. This way, you can compare lender fees and terms. Once you choose the perfect loan company, complete an online application, and wait for a response.

source:finance-slot.blogspot.com