Loans » credit auto loans

Bad Credit Auto Loans Explained

davidguide — Sat, 26 Feb 2011 15:24:03 +0000

Most individuals with bad credit scores who desire to have their own cars typically have to deal with a tedious and occasionally unsuccessful procedure to apply for funding. The reason for this is that most of the lenders do not want to offer auto loans to people such as this. They’ll check your credit history and credit score, and you’ll be declined if either is below their benchmark. However, applying for bad credit auto loans is much different. As the bad credit lenders mainly thrive on poor credit loans, they rather welcome customers with poor credit record. One advantage for borrowers is that will be able to receive enough financing to allow them to purchase their dream car, and the loan will also cause an improvement in their credit history.

Before making an application for the loan, you need to clearly understand the different types of bad credit auto loans. Generally, bad credit loans are available in two forms: secured and unsecured. When using a secured loan, the car is the collateral. With higher scores you become more low risk. You will be paying in small monthly increments, which will help you because it will minimize the chance that you will default. This will help your credit score.

If you don’t want to use any of your assets as collateral, then you can look for unsecured bad credit auto loans. Unlike secured loans, lenders consider this form of loan risky and will charge high interest rates. However, if you take steps at improving your credit scores before applying for the loan, you are able to get a better deal. Make sure you know your interest rates well. If you pay a lot for the car and your credit is poor, your interest rate will go up.

About Author
Terry Asbra has been entrenched in the auto loans world for numerous years and writes articles to help consumers understand the upsides of getting auto loans or bad credit

Ask The Expert: “I am in deep debt – how do I get out?”

davidguide — Mon, 07 Feb 2011 18:29:20 +0000

My name is James and I’m 37 and live in West Hollywood. I had lost my job for six months and went deep into debt in 2008. I have a new job now but I just can’t seem to pay off my credit cards. I’ll pay it down a bit but then a birthday or Christmas will come and I charge them back up again. I pay as much as I can but the balance just won’t go down. What advice would you have for someone in my situation? When you’re falling asleep, you should be counting go-go dancers instead of debt. If the thought of debt comes to mind then you need a plan to get back to the go-go’s. The best way to deal with that anxiety is to take action and forget it. Start by setting spending thresholds and eliminate that boogie man! Below I’ve outlined my best strategies to flex your money muscle and have g-string dreams. [1] Step 1: Figure out where you want to be. It is crucial to envision yourself debt-free on a particular date in the future. Day dream of yourself looking at your financial statements and knowing that you are master of your own house. You don’t owe anyone any negative debt. Bask in that feeling of complete freedom and then remember that joy when you’re about to charge more crap you don’t need. Step 2: Map out where you are. Take an evening, open a bottle of wine or drink of your choice and make a list of every debt you owe and the interest rate. Include overdraft, credit cards, department store cards, bank of Mom and Dad or Auntie Gertrude, student lines of credit, personal lines of credit, home owner’s lines of credit, auto loans, and mortgages. Make sure to include if you have a “don’t pay now until later” department store loan too. Just because you aren’t spending money on it right now doesn’t mean it isn’t debt. Step 3: Which of your debt products have the highest interest rate? This can be emotional interest, too. If Auntie Gertrude makes you feel like jumping out the window every time you’re at a family event, then prioritize – she needs to be paid off first. The killer interest rates come with department store cards and credit cards. Department store cards have up to 30% interest and credit cards are around 20% interest. If you buy a $1000 sofa on a department store card and only make minimum payments you’ll have paid $1,000 MORE in just over three years at 30% compounding interest. You could have had two sofas if you paid cash. Crazy, right? Step 4: How are you going to bust that debt? Everything is on the table now. Remember how AMAZING you felt owing no one anything? First, holster the cards. Put them in the freezer or bury them in the living room fern. Next, figure out how much you need each month to pay all essential bills, eat and minimum payments on all of your cards. If you don’t need it, don’t spend it. Deduct that from your monthly after-tax salary. Throw the rest of your income on your debt — highest interest first. Make it a game. We all love games! Try to live on as little as possible for one month. Brown bag lunch, drink office coffee, eat at home, watch TV, play board games or have a “nookie” night with your love monkey instead of going out. Use your imagination and cheap out for only 30 days and make a huge dent in your debt. It’ll feel incredible. Step 5: Make more money to throw on the debt. Put everything you don’t want on e-bay, Craig’s list, take to a pawn broker or have a garage sale. Old comics, jewelry, coins, toys and collectibles can make you a tidy sum. Old furniture, cars, boats or trailers that you never use can get you a quick cash hit too. Ask for a raise or try to get extra cash doing something that you love to do anyway. Whatever you’re awesome at — try to sell it for some coin. Collect as much money as you can from selling your services or items that you don’t need and put it right on that debt. Be sure to celebrate your success every time you see that balance drop. Hard work deserves a pat on the back. Make sure you know how much you owe at all times to keep your eye on the prize. Step 6: What can you live without after your cheap-o month? Commit to an amount that you want to allocate to the debt and every paycheck transfer the money in chunks to pay down the most expensive debt first. Use cash for everyday variable spending and limit it by taking a tiny set amount out each week for the entire week. When it is gone it is gone. Calculate based on your payments when you’ll be debt free and mark your “liberation” day on a calendar. Write the date on your day timer or on the back of a card and carry it around in your wallet. It will motivate you every time you look at that date so post it everywhere. Tell your closest friends and family to crystallize how important the date is for you. Step 7: Dream how you’re going to reward yourself for that hard work. When you’re debt-free of all of your consumer debt (not including investment loans or a mortgages) you’ve turned the tables. The consumer shackles are off and you need to be treated well for your discipline and industriousness. Think of a how truly AH-MAZING it will be to get you through your weak moments and think of how extra sweet that prize will be when you’re there! Love your money and it’ll love you back with go-go dancer dreams, -Dave [1] http://www.365gay.com/wp-content/uploads/news-gogo-boy-gstring-top.jpg

View full post on All Stories

What Type of Auto Loan Should You Get?

davidguide — Wed, 20 Jan 2010 22:48:53 +0000

The market today is flooded with all types of auto loan options that range from bad credit auto loans to auto loans for people who have good credit. For a person who is in the market for an auto loan this can be very confusing as it makes it hard for them to choose the right type of auto loan. This article will discuss the various types of auto loans offered so that you can understand which type of auto loan works best for you.

A quick auto loan, as the name suggests, is an auto loan which is processed in a hurry, and many times the lender will not check your credit report prior to approving the loan. Some quick auto loans can be approved in less than 24 hours making it a great option for anyone who is interested in getting an auto loan in a hurry. One of the biggest and unknown of drawbacks of quick auto loan is that it is often accompanied by a very high interest rate. This interest rate can some times be well over 10% making it an expensive option.

Most dealers offer car financing options to their clients. For some clients the dealer might offer an auto loan which allows them to drive off with their new car in just a few hours time. However as with the quick auto loan mentioned above the biggest drawback of this type of auto loan is that it’s really expensive. There are service charges, and other hidden charges in addition to the high interest rate charged. Many car dealers will also not extend an auto loan to people with bad or fair credit.

An auto loan offered by a bank or a financial intuition works best for most people. The interest rate on this auto loan is not very high but it’s still expensive. However banks are great for people who have good credit but then again people with good credit can always get much better interest rates from online lenders and other lenders as well. But this will require that people with good credit shop around both online as well as visit local lenders to find the best interest rate which they can get. This requires time as well as it can be a bit of a hassle.

Jason Samuels has been entrenched in the auto loans industry for numerous years and writes articles to help consumers understand the upsides and drawbacks of getting auto loans and bad credit auto loans. Jason is amazing at answering common, everyday questions in his articles and news posts. To read more from Jason and his other articles or if you would like to apply for an auto loan, auto credit or a bad credit auto loan, just visit his website: Loans4Drivers.com.

Article Source:http://www.articlesbase.com/loans-articles/what-type-of-auto-loan-should-you-get-1756285.html