It’s sort of like watching those First Aid Course movies. There are 3 little kids playing happily in the sun. The camera pans out and we see some power lines dangling near the ground nearby. You KNOW what’s going to happen and you are forced to sit there and endure. Unfortunately, the same scenario holds true if you have bad credit and are shopping for a car.
John and Mary Smith are working extra hard to rebuild their credit after John’s accident cost them thousands that they didn’t have. They’ve cut back everywhere they could; they narrowly escaped bankruptcy several months back.
They know that an auto loan is the first big step in re-establishing their bad credit. They have saved up some money for a down payment and are heading out the door to the nearest car dealership. It’s a sunny day. They are smiling as they pull onto the car lot.
Young Joe is standing nearby as they step out of their car, (cue the Jaws music), he saunters up casually and greets them with a smile. His shiny teeth nearly blind them. His handshake is firm and his goal is clear: let’s find you folks a new car.
John and Mary innocently warm up to their nice, personable new friend. He seems genuinely concerned about their past situation, and seems to be working extra hard to help them find the perfect car. He brings up good benefits to the used cars he’s showing them; he’s given them every reason in the world to believe that this vehicle is the perfect one for them and their situation.
As they make themselves comfortable at the desk and watch him get their registration out of their trade in, they glance over to see the other salespeople looking over at them and nudging each other. John and Mary glance uneasily at each other. Their smiles start to fade.
Joe comes out from a door across the room, followed by another gentleman who is looking directly at them as he walks towards them. He introduces himself as Joe’s manager and will be sitting down to chat with them soon. His handshake is firm too.
Joe seems like a different guy as his manager slips out of sight behind another door. “Now, the price of your new car is listed at $15,995. The banks like to see about a third down, which would be about $6000. Is that what you were thinking? Or were you going to put down more to make your payments even lower?”
Uh, Joe, we told you out there on the lot we only had $1000 to put down.
“Oh, sure you did, didn’t you? Well, I’ve found that most people tell me less out there on the lot because they haven’t gotten to know me yet. So, do you think you would be able to come up with the whole $6000?”
John and Mary suddenly get an uneasy lump in their stomachs. John’s back starts to throb. Mary’s hands feel clammy.
Soon Mr. Manager comes back out and explains that the last car they took in just like their trade in was only worth about $1500. He can see on their offer they were hoping to get about $5000 out of it. Well, he can call around to different wholesalers to see if they will give him a buy-bid of maybe $1800. Or, they could even just keep it and try to sell it on their own for $2000. But, of course, not having that trade equity will raise their payments.
The next 2 hours seem like a crazy circus trip through a hall of mirrors. Bewildered and exhausted, John and Mary finally emerge with an envelope of paperwork clutched in one hand, shiny new keys to a 1 year old used car in the other.
They give Joe a pained, dazed smile and weak handshake as they collapse into their new car, empty stomachs rumbling.
What John and Mary didn’t see in their rear-view mirror as they slowly drove off the lot, was Joe and his manager smiling and shaking hands at yet another “pounder” for the month. At this rate, they’ll hit their 3rd level bonuses with ease.
John and Mary are the bread and butter buyers of most auto dealerships across the US. They need the clout that dealerships have with the lenders to get approved for a car loan and begin rebuilding their credit. But the dealerships prey on this weakness, and extort thousands and thousands of dollars from already “wounded” consumers. John and Mary are already “buried” in their car, owing thousands more than it’s worth…and they haven’t even finished their hamburgers yet.
It’s important to become as educated as you can about your situation and all of the options and strategies that are available to you…regardless of your credit. Don’t think this little game is ONLY played on the folks with bad credit. If you look like you can be their next victim, you can rest assured you will be. Diligence and knowledge are going to keep you free from the lions, and keep you on track to buying cars without getting eaten alive.
Amy Latah is a pro-consumer public speaker and strong supporter of http://www.InsideTheLionsDen.com, a site designed to promote the truth about how consumers have been played the fools for far too long.
Posted by admin as The Loaning Way at 11:25 PM CDT
Comments Off
You have decided to consolidate your debts with a debt consolidation loan. The idea behind it is to pay of your existing debts and to make your repayment easier and convenient. You think any debt consolidation loan with a lower interest rate than the present ones will serve your purpose. Wait! Think for a while, when you want to consolidate your debts and in the process want to save money from your repayments then why not utilise your financial resources properly and save the maximum money out of it. There are various lenders who can provide you a CHEAP DEBT CONSOLIDATION LOAN at a lower interest than the debt consolidation loan you are considering to avail.
You can avail a cheap debt consolidation loan at an unimaginable rate of interest by systematic planning and research work. Understanding the loan approval process will help you in getting a CHEAP DEBT CONSOLIDATION LOAN. Your loan approval depends on various factors like your credit history, your financial stability, capacity to provide collateral, the loan amount required etc. Let’s discuss some of these in detail:
• Credit history: Your credit history plays an important role in loan approval. Applications with good credit history are approved quickly whereas an applicant with bad credit history needs to give lots of explanations for his defaults.
• Financial stability: Your capacity to repay depends on your present earnings and the assets you have. So your financial stability will determine your loan approval and the rate of interest. Lenders are liberal with people of good financial stability.
• Collateral: Lenders are at lower risk while providing loans to people who offer collateral because in case of defaults the collateral can be repossessed. So people who provide collateral have a better chance of loan approval at lower rate of interest.
• Loan amount: Applications for high amount loans have chances of getting huge rebate in interest because it gives high revenue to the lender in terms of interest charged.
• Lender: The competition in the in the market has compelled lenders to look for a niche in the market. Always look for a lender who specialises in cheap debt consolidation loans.
Keeping the above factors in mind while applying for a cheap debt consolidation loan will help you find a loan at lower interest so that you can save a large chunk of money.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Shakespeare Finance as a finance specialist.
For more information visit our site http://www.debt-consolidation-park.co.uk
Posted by admin as The Loaning Way at 7:44 PM CDT
Comments Off
Bankruptcy seems like an unforgiving state of finances in which a person has reached a level where he can no longer recover from. This is not true. Bankruptcy is not the end.
When a person files bankruptcy, he is simply declaring that he no longer has the capacity to pay all his outstanding debts. To verify the veracity of such a declaration, there is going to be a study of his bankruptcy case and there will be negotiations with the creditors. But after all the creditors have been paid off, does the person who declared bankruptcy bear this financial stigma for the rest of his life? Not necessarily. A person can still restore or re-establish his credit by using a bankruptcy loan.
What is a bankruptcy loan?
A bankruptcy loan may be obtained after a person has filed a bankruptcy and his creditors have been duly paid. This is because one of the main goals of a bankruptcy loan is to restore a person’s credit and finances. This is why a bankruptcy loan can also be used to immediately consolidate a person’s outstanding debts.
However, before a person applies for a bankruptcy loan, he must first consult a financing specialist who can help him negotiate with the creditors. This financing specialist can also help him locate the lending company or financial institution that offers the best terms and interest rates. Only then can a person apply for a bankruptcy loan.
Can the bankruptcy loan be used for debt consolidation?
The person who has filed a bankruptcy will naturally still have debts to pay. And these outstanding debts will definitely have high interests. Fortunately, a bankruptcy loan can be used as a consolidation loan. That is, by using the funds from a bankruptcy loan, a person can pay off all his other outstanding debts and loans. What will be left behind is the bankruptcy loan. This loan alone will be the sole monthly financial obligation that a person has to meet.
At first glance, the monthly payment of the bankruptcy-turned-consolidation loan appears large. But this is because it already combines all the other loans. To prove that this final loan is indeed smaller, a person simply had to sum up the bills he needs to pay from all his other loans.
Where can a person obtain a bankruptcy loan?
A bankruptcy loan can be obtained online. This means that obtaining a bankruptcy loan can be relatively convenient. There will be no hassles of traveling, falling in line and having to bring about documents. To apply for a bankruptcy loan, a person needs to find and choose a lending company and fill up an online application form. Then this application form will be evaluated and processed immediately.
Is there life after bankruptcy?
Once a person has paid off his bankruptcy loan on time, the person’s credit score or credit history will improve. He is no longer considered bankrupt since his credit has been re-established.
You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:
About The Author
John Mussi is the founder of UK Bad Credit Loans4u who help homeowners find the best available loans via the http://www.uk-bad-credit-loans4u.com website.
Posted by admin as The Loaning Way at 11:26 PM CDT
Comments Off
With the market flooded with finance companies offering a number of loan options buying a car has no longer a difficult task. You can easily avail a car loan for the purpose of buying your dream car. But, how often do you really contemplate and research as to which car loan would be the best option for you? Many of us do not bother to look into the intricacies involved in availing a car loan. With so many offers available to us we get confused as to which would be the BEST CAR LOAN for us. Let us explore and find out which is the best car loan for you.
The best car loan is one that saves your money, which you pay as interest to the lender. It is seen that the lowest interest rate is offered in case of secured car loans. You pledge your property in front of the lender as collateral and he grants you loan in return. Therefore the interest rate is very low. The Annual Percentage Rate (APR) is also low in case of a secured car loan. A secured car loan also provides you an option to increase or decrease your repayment period. With this you can also fix the monthly installments according to your suitability.
But it may vary from case to case as to which car loan is best for you. For a particular individual a secured car loan will be the best whereas for the other an unsecured car loan will be the best. If you have a poor credit record you can go for an adverse credit car loan. Considering your poor credit record if you get the loan at competitive interest rates it may prove the Best Car Loan for you.
In a nutshell it can be said that the best car loan is one that has the following features
• Low interest rate
• Fast approval
• Flexible repayment options
• Hassle free sanction procedure
• Charged with minimum loan fee
• Sanction of higher loan amount for luxury cars
There are a number of online car loan providers in the market. So, if you need the best car loan just go through some useful websites on the internet, research and analyse which offer is best suited for you and finally fill the online loan application form. Very soon you will be driving home your dream car.
About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Adverse-Credit-Car-Loans as a finance specialist.
For more information please visit http://www.adverse-credit-car-loans.co.uk
Posted by admin as The Loaning Way at 2:25 PM CDT
Comments Off
Cheap car loans are essentially auto loans that consist of a low rate. For many people, this is a primary concern. Low interest rates equal lower monthly payments. Hence, car buyers are able to afford more. Individuals with a high credit score may qualify for a low rate auto loan. Yet, it is possible to obtain a good rate with average or bad credit. Here are a few tips to help you secure a cheap car loan.
Monitor Your Credit Rating
Do not enter the car buying process blindly. For the most part, anyone can qualify for a used or new car loan. Automobiles secure the loan. Thus, if you default, the lender may repossess the car and resell it. Nonetheless, having a few credit blemishes will result in a higher interest rate. Average car rates are about 6%. But, they can climb as high as 18%
If you are contemplating financing a new or used vehicle, check your credit beforehand. Raising your score by twenty or thirty points make a major difference. Moreover, paying two percentage points more on a car loan may increase your monthly payments by $50.
To get the lowest rate possible, improve your credit before applying for a loan. Simple tactics such as paying down credit card balances, avoiding late payments, and limiting credit inquiries can increase your total score. This is important because applicants with higher scores obtain better finance packages.
Establish Credit Beforehand or Get a Co-signer
Unfortunately, applicants with no credit history have a difficult time securing a low rate auto loan. To determine credit worthiness, lenders must assess your credit history. If you do not have any previous creditors, auto lenders are uncertain of your willingness to repay the loan.
To improve your odds of getting approved, attempt to get a credit card before applying for an auto loan. For about six months, maintain regular payments and keep a low balance. When applying for an auto loan, your credit report will reflect a good credit history, which may qualify you for a cheap car loan.
If you are in a hurry to obtain a loan, a co-signer may be able to help. To qualify for a cheap car loan, co-signers must be at least 18-years-old and have good credit.
Visit www.abcloanguide.com/autoloans.shtml for cheap car loan quotes online. View our recommended lenders for car loan quotes online.
Posted by admin as The Loaning Way at 2:23 AM CDT
Comments Off