In almost all cases, high risk loans translate into a higher interest rate because of the uncertain nature of the loan. High risk loan lenders understand how people can get behind and get into trouble, and most are more than willing to give you a second chance. However, because your credit may be severely damaged (see credit repair), they do need to protect themselves in case you default.

Lenders granting high risk loan

Our high risk loan lenders are pre-screened as reputable organizations willing to give you a second chance at a fair rate. While the interest rate on the high risk loan will be determined by the lenders after reviewing the severity of credit problems, collateral, down payments, and the degree of credit risk, you can be assured of finding a program to meet your situation.

To attempt credit repair with high risk loans you first need to have a plan. In most cases, the funds of high risk loan are used to pay off remaining debts so that you only have one monthly payment. In other cases, high risk loans are used to purposely build credit through on time payments and an early pay off. Regardless of your situation, a high risk loan can give you a chance to obtain benefits only available to those with good credit.

High Risk Loans Eligibility

Quite obviously, if your loan applications are being repeatedly turned down then there is certainly something wrong with your credit score. Those who are most eligible for high risk loans include people with a tainted financial report, a bankruptcy filing, or a string of late payments and charged off accounts.

Whether your credit is poor or absolutely downright awful, certain high risk loan lenders will provide all kinds of different high risk loan programs. While the interest is higher, such high risk loans can provide a great start for borrowers with little or no credit, as well as those trying to re-establish their credit history.

You?ll want to check with the high risk loan lender to see if there are any limitations as to what the money can be used for. Whether you want to pay off other debts, make home improvements, avoid foreclosure, or pay for unexpected expenses, a high risk loan may be the answer you seek. .

1. Credit cards for students

The sad truth is, credit card companies are more than willing to dole out credit cards to college students. If you’re enrolled in college, you have a very good chance of getting approved for a student credit card. Be wary, credit card companies are notorious for preying on college students. Start with only one credit card, no matter how many other offers you get.

2. The bank of your checking or savings account

If you’ve been responsible with a checking or savings account, you can try applying for a credit card at your bank. Talk to a bank representative about opening up your first credit card. Having an existing relationship will improve your chances at getting a credit card application approved.

3. A department store or gas credit card

Department stores and gas companies typically have easy credit card approval. This can make getting your first credit card less complicated. On the downside, they have high interest rates that make it expensive to carry a balance from one month to the next.

4. A secured credit card

When your (lack of) credit history keeps you from getting a standard credit card, you can apply for a secured credit card. With a secured credit card, you make a deposit against the credit limit of the account. The bank holds the deposit just in case you don’t make your payments as agreed.

The car loans are secured loans to students. If a student does not appear to have taken the loan against the car was quite the student intends to buy to protect the security of the loan. The lender is allowed to drive in his possession papers of a lot of car and return only if the loan is paid in full, return. The student is now ready to use as a car owner.

Since the type of loan is a loan guarantee, credit bad for a student not much in the way including the use of the loan. In case of default, the lender can sell the car to recover the amount loaned. Thus, the lender has no risk offer student car loans student bad credit.

But a student with good credit will be in a better position in the car with student loans at lower rates, while offering a bad credit student loan interest rates over something. Lenders may also relax some of the terms of credit conditions favorable for students. There is no obligation for the lender that the loan should be co-signed. This makes the credit easier for a student.

The amount you can borrow depends on the model car you intend to buy and the best repayment capacity. Thus, we see how much of a deposit, you can use the car salesman, so that fewer loans that you check with your lender.

When students have approved car loans and money to buy a car is in your hands, you can buy it from anywhere? However, very few companies provide funds for each purchase. Most finance companies have agreements with car dealers often with those franchises. Distributors can help you find the model car you are looking for.

Before you qualify for a lender, you do much research on the Internet for the right lender and compare different loan packages available. Compare rates and terms of conditions for a better offer. Student car loan, you have access to resources necessary for a car, but repay the loan in time to avoid the pitfalls.

We know what you’re going through

At Pierre Money Mart, we’ve been helping bad credit car buyers reestablish their car credit by financing a new or recent pre-owned vehicle with a bad credit car loan. During that time, we’ve tried to educate consumers on high to take advantage of the process – since these very same people begin with a distinct disadvantage due to the high interest rates charged by these loans.

Your FICO score

There are 5 factors that FICO (formerly known as Fair Isaac) uses to determine your credit score. Where you fall in this ranking will determine whether you can finance your next car with a traditional lender or whether you will need to apply for a bad credit car loan (there will be more, later, on where and how you should do this). The 5 factors and how they affect auto financing include:

Payment History - Payment history affects approximately 35 % of your score. Making all of your monthly payments on time goes a long way towards being able to secure vehicle financing through traditional lending channels. If you have been a bit remiss in making your payments on time, bad credit car loans could be an alternative.

Balances - How much do you currently owe to creditors? Your current debt load will affect about 30 % of your FICO score. If your credit cards are at their limits and your revolving credit is maxed out, this will have a negative affect on your score. Bad credit car loan buyers, especially, should try and lower their debt load before applying for a loan. The lower your balances (a rule of thumb is to keep your current balances at 30% of your credit limit or lower), the higher your score and the lower the interest rate that you will be charged on a bad credit car loan.

Credit Utilization - The types of credit you are currently using impact your credit score by approximately 15 %. Banks, finance lenders, credit cards, mortgages, and all other financing is included in this category.

Depth of Credit – How long have you been using credit? Your time “in the bureau” accounts for approximately 10% of your credit score. The longer you’ve been using credit, the higher your score will be.

Recent Credit Opened - Recent credit applications impact your score by about 10%. If you are constantly applying for new credit (loans, credit card application, etc.) this will be reflected in a comparatively lower credit score.

The first thing car buyers need to do is to assess their own financial situation. This is important as this can help a person know what he can afford, which can help him set a price limit for his purchase. Moreover, doing so can help a car buyer avoid being encouraged to buy a car he cannot afford. In relation to this, car buyers also need to decide on which car they want depending on their price limits. This is also important because it can help narrow down a person’s search for a car. Another important step is to canvass for the auto dealership that would offer the best deals on cars. If possible, people should also bring the ads of other auto dealers to the dealers they go to because this can give them a good leverage when it comes to the price negotiations.

When dealing with auto dealers, car buyers should not just settle for the rate that an auto dealer first gives for the financing of a car, because they can negotiate for the best rate possible. If the dealer cannot offer them a better deal, they can simply move to the next dealership. Car buyers should also avoid being loaded with things that they do not need, like rust proofing or tow packages by their auto dealers because doing so only adds to the price of the car.

Dealing with auto dealers can be tricky, so car buyers should be informed about the car-buying process in order to avoid being duped by some unscrupulous auto dealers. With the right information, car buyers are sure to get a good value for their money

The way it would work is that the U.S. Department of Energy would be given the authority to approve loan guarantees to auto manufacturers for alternative-fuel research and development projects. If the auto manufacturer defaults on the loan, the U.S. Treasury would be forced to repay it.

A Ford spokesman said they support the measure while GM spokesman Greg Martin implied they weren’t seeking loan guarantees. He said, “It’s an intriguing idea that merits consideration, but right now our turnaround and our success rests on the advanced technology that we are putting in our cars and trucks today.”

Interest Rates That Make Credit Card Companies Blush

Car title loans have been lumped into the “predatory lending” category by many consumers. Non-profit organizations such as Consumer Federation of America (CFA) and the Center for Responsible Lending have issued detailed reports outlining some of the title loan issues that the public should be leery about.

One of the biggest issues with these loans is interest rates. Many people dislike credit card interest rates, which average between the mid to high teens for most Americans. Car title loan interest rates make complaining about credit rates seem ludicrous. Car title lenders are in a different category than credit card companies or banks and work around usury laws. Thus, title loan lenders are able to charge triple digit annual percentage rates (APRs). Yes, triple digits. It’s not an exaggeration to see 250% APR and higher on these car tile loans and only a handful of states have passed strict laws that prohibit exorbitant percentage rates. Even if your credit card company is charging you a high interest of 25% APR, it’s nothing compared to car title loans.

By federal law, title loan lenders have to disclose the interest rates in terms of the annual percentage. If you have to get a title loan, make sure they don’t just give you a quote of the monthly percentage rate, they have to give it to you as an APR. If they are unclear about the rates, which many can be, just know that a monthly rate of 25% is equivalent to a 300% APR.

Fees and Interest Only Payments

In addition to high interest, these car title loans usually include a number of fees that add up quickly. These include processing fees, document fees, late fees, origination fees and lien fees. Sometimes there is also a roadside assistance program that borrowers can purchase for another small fee. Some lenders have even gone so far as to make the roadside assistance mandatory The cost of all these fees can be anywhere from $80 to $115, even for a $500 loan. Most of these fees are legal, except one that lenders sometimes charge, the repossession fee. Lenders are not allowed to charge you to repossess your vehicle, but some still do.

As if high interest rates and a mountain of fees weren’t enough, lenders also give borrowers the option of interest-only payments for a set period of time. In these cases, the loans are usually set up for a longer period of time (compared to the typical 30 days) and the borrower can pay the interest only on the loan. These types of payments are called “balloon payments” where the borrower pays the interest of the loan each month and at the end of the term they still owe the full amount of the loan. The CFA reported that one woman paid $400 a month for seven months on an interest-only payment term for a $3,000 loan. After paying $2,800 in interest, she still owed the original $3,000 in the eighth month.

Rolling Over and Repossession

If you think most of the people who take out these loans pay them back in full after one month, think again. Because of the high interest and the fact that these lenders cater to low-income borrowers, many people aren’t able to pay back their loans in the 30-day period. This is called “rolling over” the loan. The terms of these loans are crafted to keep borrowers in a cycle of debt and bring customers either to the verge of repossession or to actual repossession. Not being able pay off the initial loan and then renewing it the next month costs borrowers even more money in interest, on top of the original amount they’ve already borrowed.

Let’s talk about repossession for minute. The CFA reported that, of the people they interviewed in their 2004 study, 75% had to give the title loan lenders a copy of their car keys. Some companies started the cars to see if they worked and took pictures of the vehicle even before a customer filled out the loan application. A company based in Arizona said they have GPS systems installed on the cars so they can track the cars and shut them off remotely if they don’t receive payment on time. That may be an extreme case, but these lenders take a customer’s promissory signature very seriously. If you can’t pay, they will come looking for you and your car.

The concerns for having your car repossessed are obvious. How do you get to work, drop off the kids at school, pick up groceries or go out on the weekends without a car? As if those scenarios weren’t bad enough, owning a car can be some people’s biggest financial asset. If the car is taken away, so goes the money it was worth. Some states have laws that force the lenders to pay you the difference of the loan once a lender has repossessed and sold your car, but some don’t. It is possible to default on the loan and not get any money back for your car, even if you only borrowed a few hundred dollars.

This occurs because car title loans are also over-secured. Typically, the maximum amount most lenders will give you is 25 to 50 percent of what your car is actually worth. However, if you can’t pay back the loan they may be able to sell your car and keep 100% of the profit. Some lenders won’t take possession of a vehicle but instead take the customer to court for the money. They then tack on court costs and finance charges on top of the existing loan amount.

Alternatives

Many car title loan lenders defend their business practices by saying they offer loans to people who would otherwise not be able to gain financial assistance. Although this may be partly true, signing over one of your most valuable assets for several hundred dollars is not the only option.

Some credit unions, like in North Carolina, have begun providing loans that have low interest rates of about 12% APR, a fixed 31-day repayment plan (to keep from rolling over a loan) and set up direct deposit out of the borrower’s paycheck so that loans will be paid off in full.

Other options may be paycheck cash advances from your employer, cash advances on credit cards, emergency community assistance, small consumer loans, or borrowing from friends or family. If you find yourself contemplating a car title loan, check out these alternative options and read the information for yourself at www.responsiblelending.org or www.consumerfed.org. If you still need to sign over your car for cash, educate yourself on the decision and know the possible repercussions of these types of loans.

Lenders are tightening their standards for car loans and that means bigger down payments and monthly installments. Some buyers looking for new mid-sized sedans are settling for used compact cars and others cannot even afford those.

CitiGroup, one of the nation’s biggest financial firms, has cut about 800 jobs in its auto lending business and says it plans to scale back the number of loans it offers.

“People with decent credit aren’t able to get the terms they think they should get,” said Michelle Primm, managing partner of the Cascade Auto Group in Cuyahoga Falls. Primm also represents women dealers in the Eastern U.S. for the National Automobile Dealers Association.

Mary Kay Bean, spokeswoman for JP Morgan Chase, said her company is requiring larger down payments than before and is limiting terms to six years for buyers with lower credit scores.

Bill Miller, a Cleveland State University student who works full-time as a mechanical engineer, said he tried to buy a car a few months ago and couldn’t get credit anywhere.

Miller’s status as a college student with a C-minus credit rating and some credit card debt told him getting a loan would be a challenge, but he didn’t think $7,000 for a used car would be out of line for him and his girlfriend.

“We were declined and declined and declined. I thought I rebuilt my credit, at least to the point of getting a car loan,” Miller said. “I guess not.”

Scott McKown, finance and insurance director for the Classic Auto Group in Mentor, said competition among lenders as recently as last year allowed dealerships to sell cars to people who typically couldn’t afford them.

“In a lot of cases, we’d say, ‘Boy, I hope the customer can pay this,”‘ McKown said. “These guys tended to specialize in that low end of the business.”

The loan squeeze could lead to lower sales in a year that has been one of the worst in a decade. As with the collapse of the mortgage business, lenders blame the tightening of auto credit terms on Wall Street.

Until this year, high-volume lenders would package their auto loans and sell them to investors, who would make their money from borrowers’ interest payments.

But with the collapse of the mortgage market, investors no longer are snapping up loans, especially those to buyers with questionable credit.

Even Ford Motor Credit, General Motors Acceptance Corp. and other lenders affiliated with automakers say they’re looking a little harder at each transaction. But those companies tend to stick to the best borrowers, so dealers said the effect of those changes has been minimal.

“When you have dealers that say they can get anybody a loan, they’re selling financing,” said Pat O’Brien, owner of Chevrolet dealerships in Medina, Willoughby and Westlake. “They’re not selling the car.”

Here are five tips for saving money on your next car purchase.

1.Get your financing in order before you leave to look at cars. While many car dealerships are offering financing for vehicles, this can be one of the more costly options. Make sure you talk to online financing companies, your local bank and your credit union. You probably will save a good amount of money here.

2.Do the down payment. Even a bit of a down payment can help you to save considerably down the road. You can save a good deal of money if you invest wisely. But, adding a bit of a down payment to the purchase will help to lower the amount of principal that you actually owe on that vehicle purchase.

3.If your credit is bad, get a co signer. Having someone else that can help you to get your car is a great way to secure a vehicle for a more affordable price. This helps to lower the amount of risk that you present to the car financer. The lower the amount of risk you prove to be, the better your chances of paying less for that car.

4.Trade-ins are good too. If you have a car that you plan to trade in, you may be able to get a good price for it. To improve the amount you get, make sure that the car is as clean as possible, is running well and has been taken care of. In addition to this, make sure that you know the value of it by looking it up on the web. Know what its worth so you do not get taken. The value of the trade in will lower the amount you have to have financed on your vehicle.

5.Shop around and haggle. There is no shame in saving money. Dealers are selling cars to make a commission. How much will they make off of you? Do your homework out the type of car you are looking for and know its worth. Look at several dealerships to find the right car at the right price. Don’t forget to haggle with the dealership salesmen. But, whatever you do, do not be insulting to them. That’s the wrong way to get your price down.

Take these five ways to save on the next time you buy a car and you will walk way with the benefits that you deserve. You can save a good amount of financing and interest charges this way.

One of the most common methods of purchasing a car with poor credit is with a “bad credit car loan“. You can acquire these loans through auto dealerships, online lenders, and high risk lenders. Typically these loans are available for anyone with a credit score below 600. People can find themselves in this situation after a divorce, after bankruptcy, if they have little credit, or if they have made poor financial decisions. The “bad credit car loans” are designed to protect the lender. They have higher interest rates than conventional auto loans. However, it is in your best interest to shop around for a bad credit car loan

Risks of Shopping around

There is a risk of shopping around for an auto loan. Submitting loan applications to several different companies will lower your credit score even more. It is in your best interest to find an organization that will find various Bad credit car loans for you, but only check your credit report one time.

Home Equity Loan

Another way to get auto financing with poor credit is with a home equity loan. The interest rate on a home equity loan is usually lower than the interest rate on a “bad credit car loan”. Another advantage is that the interest is tax deductible on a home equity loan. The one obvious disadvantage to this type of financing is that you are using your home as collateral. If you are not able to pay your loan, then you put your home in jeopardy.

Do not lose hope if you have poor credit. There are still options available to finance your car. Bad credit car loans, and home equity loans can help you achieve your goal of purchasing a new vehicle.

The first thing each and every individual should do before applying for an auto loan is get their own credit report. Checking credit reports for accuracy should occur once a year. If there are any mistakes that negatively affect your credit, corrections can take up to three months to fix. Staying on top of these mistakes will save you headache in the long run.

Reduce credit card balances An important factor in your FICO credit score is the ratio of owed amount to credit limit. If you have over 25% of your credit limit owed, this could lower your credit score. Try to limit the use of credit cards if this is your problem. Pay bills timelyPaying bills on time is one aspect of good credit in which most people are aware. Be sure you make timely payments on bills especially close to the time you apply for a loan. A late payment six years in the past will not affect you credit as heavily as a late payment in the present.

Pay off debt Many credit cards offer appealing balance transfer rates. Do not fall victim to these rates around loan time. If you cancel a credit card and transfer it’s balance over to another credit card, you are increasing the debt to credit limit ratio. As stated earlier, this is not a good thing. Instead of transferring debt, work on paying off that debt before applying for an auto loan.

There are many reasons why improving your credit score is so important. Saving money on auto loans is just one of the many benefits of having great credit. Improving your credit not only improves the health of your current financial situation, but sets you up for future financial success.

Even if you have bad credit, you can still qualify for an auto loan…and it’s become easier and less humiliating now due to the wonders of the internet. You can apply online, and not have to put up with the unneeded stress of trying to get financed through the dealership.

Here’s how to buy a vehicle if you have bad credit…

Set up financing before even stepping onto the car lot. You can get “pre-approvals” from many online lenders. This way you know when you walk onto the first car lot exactly how much you can spend, and how much your monthly payments will be. The lenders will approve you for the loan, and mail you a voucher that you give to the dealership once you work the deal on the car you want. You simply fill in the amount borrowed (up to your pre-approved limit,) sign, send your signed contract into the lender, and you’re done.

In order to qualify for a bad credit car loan, lenders look at some specific things. They will want to see if you have sufficient income to cover your current bills, the loan payment you are about to commit to, as well as the costs of maintaining and insuring your new vehicle. Most lenders also prefer that you’ve held your current job for about a year, and that you’ve had a consistent home address.

It sounds a bit simplistic, but don’t take on any more of a car payment than you can afford. Use this opportunity to rebuild your credit…make your payments on time, and when your credit situation improves, you can get your loan refinanced at a lower interest rate.

Like with any other buying situation, it is best to compare rates among different lenders. Be careful not to apply at too many places though, as too many credit inquiries will have a negative effect on your credit score. Should you need any recommendations, please go to http://www.pierremoneymart.com

Good Luck to you in that new car.

That means not only defining clearly the criteria determining who gets the money, but also clearly defining success, said Fraser, who is about to take on the herculean task of ensuring the stimulus package is spent properly.

That money needs to get out the door quickly if it is not to hinder, rather than help, any economic rebound, Fraser acknowledged.

But the stimulus plan “should not be a licence to dispense with sound management practices,” she added.

Given the urgency of the spending plan, Fraser’s department plans to do “real-time” audits, looking at the spending as it happens rather than later.

Her role will include auditing the federal government’s loans to auto manufacturers and purchases of mortgages.

She said later that, given the scope of the spending, her department will rely greatly on the internal auditing departments of the federal ministries involved.

“We can’t audit everything that’s happening,” she said.

It’s a widely held misconception that Fraser is the watchdog of government, she said.

“In fact, it’s Parliament that is the watchdog,” said Fraser.

“Our role is to tell Parliament how well its decisions are being implemented.”

Fraser, who has been auditor general for the past eight years, spoke at the Brockville Country Club at a luncheon held by Brockville’s two Rotary Clubs and the Brockville and District Chamber of Commerce.

Her tenure has yielded reports into inappropriate spending leading to some of the largest political scandals of recent years, but Fraser insisted her mandate is not to remain highly visible.

“Our mission in life is not to get a lot of headlines in newspapers, nor to go on a witch-hunt,” she said.

Fraser was largely complimentary of the governments she has seen while in her office, including the vast bureaucracy entrusted with enacting policies that can rapidly shift direction, especially in a succession of minority governments.

“People really do work very hard to implement the decisions,” she said.

Sometimes, however, civil servants do things that raise an auditor’s eyebrows.

When asked to recall the most “interesting” expenses she has come across, Fraser cited the “horror stories” of $400 lunches and the case of one manager in a small agency who had not spent all its money by the end of the fiscal year.

“He divided it up amongst his employees,” said Fraser, to much laughter.

On the question of spending, however, Fraser said another common misconception involves complaints that items are promised in the federal budget, but take months to become a reality.

In fact, that’s how government is supposed to work, she said, noting that budgets are done in the winter while the fiscal year only starts April 1. In the meantime, the measures have to be designed, then approved by cabinet.

“The budget is merely a statement of intent.”

Fraser, whose department functions on an annual budget of $85 to $90 million and employs 630 people, will leave her job in 2011, when her 10-year, non-renewable term expires.

While audit reports do contain plenty of criticism of government activity, Fraser said her job really is to maintain Canadians’ confidence in their government by ensuring it acknowledges mistakes and inefficiencies and corrects them appropriately.

“Ultimately, I believe we have a constructive role to play,” she said.

These are confusing times for old-fashioned, naive Americans.

For one thing, we have no idea if it’s still OK to buy a car just because we like it. Blame post-bailout disorientation.

Six months ago, old-fashioned Americans were chastised for even mild opposition to taxpayer bailouts for auto companies.

“Don’t you understand what’s at stake?” cutting-edge thinkers said. “If General Motors goes bankrupt, the nation will collapse.

“Congress must do something because relying on the free market to fix itself is an outdated strategy.”

That’s when we learned disagreeing makes us old-fashioned.

Merely calling the bailout a bailout was treated as a dirty trick.

“Pu-leeze,” the cutting-edge thinkers snorted. “We’re talking about loans. Loans!”

It did no good to point out that giving someone billions of dollars without a repayment schedule or collateral is unlike any loan at the credit union.

“Don’t be naive,” we were told.

That’s when we learned expecting loans to be loans makes us naive.

Hey, life goes on.

The confusing question for the future is this: What are we supposed to do next time we need a car?

General Motors, as everyone knows, did file for bankruptcy. So far, the nation survives.

One offshoot of the bankruptcy is the people of the United States will soon own 60 percent of General Motors.

When the government owns the means of production, that is the textbook definition of … well, never mind. No sense bringing that up again.

President Obama says he wants to sell our stake in General Motors and get out of the car business. Let’s hope so. It’s a good plan, but it may take a long time.

Old-fashioned and naive people know this much: If we owned 60 percent of Wendy’s, we would not eat lunch at Burger King. Not even with coupons to try that Angry Whopper.

Owning a controlling share of GM means every American taxpayer has smart reason to buy GM cars. It’s our company.

Maybe we even have a patriotic duty to buy General Motors.

If so, it seems unfair to Ford, the only American automaker that took care of business without taxpayer bailouts.

Ford may even gain sales from a political backlash. Some people vow to buy Fords to punish GM for slurping up taxpayer money.

Never before was picking a car so political.

Ford or Chevy?

I’ll ask one of those cutting-edge thinkers, if I can find one who does not prefer Japanese cars.

U.S. auto suppliers, who negotiated federal loans earlier this year, plan to ask the Obama administration’s auto task force this week for $8-$10 billion in loan guarantees, Bloomberg reported on Tuesday.

Industry trade groups plan to request the U.S. Treasury to back at least a part of loans for auto suppliers from banks to reduce risk and increase lending, the news agency said, citing Neil De Koker, president of the Original Equipment Suppliers Association (OESA: undefined, undefined, undefined%).

The banks may be part of a group of lenders who could choose the suppliers to receive loans, De Koker was cited by the news agency as saying.

Suppliers will need loans to start producing parts for General Motors (GM: undefined, undefined, undefined%) and Chrysler when the automakers resume manufacturing, De Koker was cited as saying in the report.

“We have very good companies that can’t get financing,” Bloomberg quoted De Koker as saying. “It’s essential to provide support to suppliers in order to ensure that the money already spent on GM and Chrysler doesn’t go to waste.”

The OESA and the Motor & Equipment Manufacturers Association will meet with the auto task force on Wednesday, and U.S. House and Senate members later in the week, according to the report. ]]> http://pierremoneymartblogs.com/index.php/2009/06/04/auto-suppliers-to-seek-new-government-aid/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/06/02/retire-debt-free/ http://pierremoneymartblogs.com/index.php/2009/06/02/retire-debt-free/#comments Tue, 02 Jun 2009 18:38:19 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=861 Not so long ago, Americans retired debt-free. Then, somewhere along the way, that changed. Now more and more Americans are retiring with debt, with mortgages, with home-equity lines of credit, with credit-card debt, with auto loans and more.

Before the great recession of 2008-09, that debt – while not insignificant – didn’t seem to be a huge problem.

“Important measures of financial vulnerability suggest that the growth of debt might not be that worrisome,” Mauricio Soto wrote in a 2005 Center for Retirement Research at Boston College report. “The combination of extraordinary asset growth and historically low interest rates allowed households to increase their debt relatively painlessly: their net worth grew significantly, and the portion of income used to pay for debt did not increase.”

“This is not to say that baby boomers might not encounter a few bumps in the road or that some groups might not be vulnerable. But baby boomers as a group do not appear to have an immediate debt crisis,” he wrote.

That was then and this is now. And now it’s not just a bump in the road; the road has seemingly disappeared. The debt load of would-be retirees and retirees is worrisome. Consider: One in five (22 percent) boomers owe at least $50,000 in non-mortgage debt in 2009, up from 12 percent in 2007, according to the just-released “Debt: The Detour on America’s Road to Retirement,” Securian’s 2009 Survey of Financial Values and Debt.

And nearly four in 10 baby boomers had non-mortgage debt of $25,000 in 2009, 29 percent in 2007. Equally troubling, the percent of those in the so-called “silent generation,” the boomers’ parents, with debt of $25,000 or more was 22 percent in 2009, the same as in 2007.

The great recession of 2008-09 has changed the behavior of many boomers, according to Kerry Geurkink from Securian. Americans, in general, are less likely to view debt as a way to fuel their lifestyle, are saving more for emergencies and looking for ways to save on groceries, transportation and the like. They are paying off car loans, credit-card bills, mortgages, home-equity loans, overdue bills, money owed to family or friends, and other debts.

But boomers are not. “Few are actively paying down their debt,” according to Securian’s report. Yet “most expect to have fully eliminated all non-mortgage debt within the next five years.” And while that might seem a pipe dream, boomers aren’t smoking dope when it comes to understanding that their debt will affect their ability to have a comfortable retirement.

By the way, Geurkink says your non-mortgage debt is an indication of just how much beyond your means you might be living.

So what’s the takeaway here? In short, boomers must and should make retiring debt-free, even mortgage-free, a priority. And they must do that while making sure they have saved enough for retirement. “Retiring debt-free should be the goal for more Americans,” Geurkink said.

But how? Here are four suggestions:

1. SET UP A PLAN

In his book, “The Complete Idiot’s Guide to Getting out of Debt,” author Ken Clark talks about the need to change your lifestyle and spending habits, the need to start today and the need to set realistic goals. But Clark doesn’t want this to be too painful. In his book, he suggests rewarding yourself along the way. He suggests treating yourself every time you eliminate a piece of debt.

His other piece of advice is to partner with someone who wants to get out of debt too, someone to whom you would be accountable for your debt-reduction plan.

2. PAYING DOWN DEBT VERSUS SAVING FOR RETIREMENT

Experts have different opinions on this one. But Geurkink suggests that you do both at the same time, pay down your debt while saving for retirement. No doubt that could lengthen the time it takes to pay down your debt, but it will at least create two habits – one of saving and one of paying down debt.

“You have to do both,” said Geurkink. “Something changes when you start adopting a savings habit. When you accumulate money, your mindset changes, you start thinking like an investor rather than someone prone to impulse purchases.”

Others suggest that you pay down your debt first, sacrificing your retirement nest egg if only till you get yourself back on track. By paying down your debt, you know exactly what rate of return you are getting on your money – the interest rate the debt carries. By investing, at least in the stock market, you don’t know what your rate of return might be.

There is, however, at least one exception to this rule of thumb, according to Clark. If you participate in a 401(k) with a match you might as well contribute to the match and then slot your remaining dollars toward paying down your debt. After all, he said, it’s hard to get a better return than a 401(k) match. “It’s free money,” he said.

Make no mistake about it, though: Paying down credit debt, if that’s what you have, could either take awhile or it could limit your ability to save for retirement. According to Bankrate.com’s debt reduction calculator, for instance, you would have to pay $432 per month over the course of five years to pay down $15,000 in credit-card debt that has a 24 percent interest rate. Or you could pay $1,000 per month and eliminate that same credit card debt in just 19 months.

So let’s say you chose to do both: Pay down $432 per month for five years and save $600 per month over the same period. You would be debt-free and have $40,803 set aside in your retirement account, assuming a 5 percent rate of return.

By contrast, let’s say you decided to pay down your debt first and then save $1,000 a month: You would have $44,609 in your retirement account, by my rough calculation.

Clearly the latter is the better deal, but it does mean being both aggressive about paying down your debt, changing your lifestyle and then making sure you start saving on a regular basis. When in doubt, many behavioral finance experts suggest putting the two habits on autopilot. And giving up $4,000 or so just might be the price you have to pay.

3. DON’T BORROW FROM YOUR 401(K) TO PAY DOWN YOUR DEBT

It might seem like a good idea at first blush, but many experts say borrowing from your 401(k) to pay down your debt might not be in your best interest. Yes, it’s a low-cost loan. But borrowing money from your 401(k) could create even more problems should you get laid off from your employer. Typically, you have to pay loan off within 60 days of leaving your employer.

4. WORK LONGER

There’s no doubt about it, according to Geurkink. If you plan to retire with debt, especially non-mortgage debt, you may put yourself in a bind. Living on a fixed income and servicing debt is a recipe for disaster. Instead, Geurkink suggests working, full-time or part-time, for as long as you can until you eliminate your debt. Once you eliminate your debt, then you can retire.

Car loans are certainly less costly than home mortgages, student loans, or other kinds of loans. So why do so many people end up defaulting and losing their cars? Find out these hidden dangers:

Biggest Hidden Car Loan Danger: The Inherent Money Pit

Unlike home mortgages, student loans or other big-ticket loans, car loans are inherently money pits. A house can build equity; higher education can increase earning potential; even jewelry can sometimes be re-sold for as much as was paid for it. If you borrow to buy one of those things, you may eventually get a return on investment. But every single car loses significant value and keeps losing it as time goes by.

Solution: spend as little on your car as possible.

Of course, in order to spend as little as possible over the life of the vehicle, you need to get a well-made, fuel-efficient car, rather than the one with the lowest price on the windshield.

But a pickup truck, SUV, sports car, or “luxury” model is a guaranteed money-loser. Don’t worry about what other people will think. Think about it: when was the last time you saw an expensive automobile and thought, “I really like and respect whoever owns that!”

The best buy? Many economists actually recommend buying a used car that’s a year or two old. That way you can actually benefit from the fact that cars only drop in value. Even a car that’s just six months old may offer you a substantial savings. Just have it inspected thoroughly so you don’t lose what you’ve saved on maintenance payments.

Hidden Car Loans Danger: Dangerously High Monthly Payments

Unfortunately, most people never figure out the total cost before signing on the dotted

____What you can spend on a car (from           above)
____Amount you’re spending per month on          gas (raise or lower this figure
depending on whether you are getting          a car with higher or lower gas
mileage).
____Monthly maintenance (remember: your          new car won’t stay new long, so
maintenance will be an issue).
____Monthly insurance (remember that for          a new car, your insurance premiums          may go up).
____Tax.

= ____ Maximum monthly loan payment.

Now plug the number above into a vehicle loan rate calculator to figure out big of a car loan, and how much interest you can afford.

Final Hidden Auto Loan Danger: Unnecessarily High Rates

If you simply take the first loan the dealer offers you, you are probably paying too much. Do some comparison shopping on the internet, and bring a list of the best loans with you when you negotiate loan terms with the dealer.

Don’t let the dealer cheat you by shifting the cost from the car loan to the car price to the deal on your trade-in. Make sure you get a good deal overall.

Congratulations! You now are far better prepared to stay out of an auto loan money pit than the vast majority of car buyers. Now you’re ready to go shopping for a loan.

Lemon Law: refers to various state laws that protect consumers against persistently defective automobiles.

Manufacturer’s Suggested Retail Price (MSRP): the manufacturer’s recommended selling price for a vehicle and accompanying options.

Upside-down: when the balance owed on a loan (including auto loans) is greater than the current value of a vehicle.

The first thing you will need is a budget. Don’t buy more car than you can afford. You will need to decide whether a used car or new car is better for you. You will also need to choose between buying a car and leasing one.

When looking for auto loans, you should know your credit score before you start shopping for a car and for auto loans. The more knowledge you have about your credit situation, the less likely you will have a finance officer stick you into a worse auto loan than you deserve.

Auto loans are offered by different sources, such as banks, credit unions, and the dealers’ own finance arms. Make sure to shop around, to get the lowest interest rate and a payment you can afford.

Many institutions provide low interest auto loans to extend the loan facility to people from all classes. What stands important here is how to get a low interest deal on an auto loan? You must also check for the financier’s prime lending rate. PLR’s are determined on the basis of many factors. The financier will have a difference in the PLR and the lending rate to the customer. You benefit if the lending rate is closer to the PLR.

Also the choice of a car greatly matters in determining the interest rates. If it’s a used car, the condition of the car is adjudged and the interest rate will tend to be higher, as compared to that of a new car or a car in good condition. Another tip would be to get your loan financed through a bank of financial institution. If your auto dealer is enticing you with a so-called great deal through his dealership, beware of the loopholes there.

Read minutely through the lines of such a deal, before you end up taking one. Your credit profile also plays the protagonist in clinching a low interest auto loan for you. Better your profile, lesser is the interest rate that you can bargain on your loan. There are ample of online loan financiers to check for before you just walk into a car showroom.

Try and figure out who can get you the lowest rate deal. Be sure you know the market rates and the current market conditions even before you let any smart sales guy speak to you for the loan. You can only adjudge if the information he is providing is correct, when you thoroughly know the same. Make the use of Internet for your best. You have plenty of websites out there, which provide information on the auto loan interest rates on a daily basis. You can check out the charts as well for yourself for finding out the best rates.

Also, you can submit your request online to these sites, which in turn pass on this information to lending institutions. Also, they provide you 3 best quotes and you who will decide on the best quote. Remember that you have to shop around extensively before you hard lock on the lowest rate deal. Interest rates you get greatly depend on your knowledge, research and your credit profile.

So what are these hidden costs? Car insurance is one of the highest expenses to vehicle ownership. It is important to know PRIOR to purchasing your vehicle what your insurance will cost. Some buyers have purchased the vehicle only to have to sell it at a loss due to the unexpected high insurance costs. If you are a first-time new car buyer, the fact that your insurance will usually cost at least $100.00 more per month will probably be a rude surprise! Or, if you have finally gotten that sweet sports car that you’ve always dreamed of owning, you might be frightened by the price tag for insuring a “hot rod”! Another determining factor in insurance rates is your age, as well as gender, along with the vehicle type that you are purchasing. All of these are factors that will determine if you can afford to insure a particular vehicle with your budget. You might find that selecting a different vehicle can give you a lot more comfort in being able to manage your budget.

One way of saving on your car insurance is by a lower liability insurance coverage (if allowed by your auto finance company) and/or a larger deductible in case of an accident or comprehensive damage claim. These are two areas that might help you afford a vehicle that might be outside your budget otherwise.

Gas and petroleum prices have sky rocketed in the last few years. The cost of commuting to work has almost doubled from just a few short years ago. In order to afford these costs, they must be taken into consideration (and the ever escalating cost) when budgeting for your new auto loan.

Routine maintenance – oil changes, wear and tear on brake pads, tires, belts, etc. must also be allocated into your finances in order to keep your vehicle in good running order. Preventive maintenance, as well as repairing your vehicle when part’s wear out, will allow you to keep your vehicle for a longer period of time–ensuring an easier transition to your next vehicle. Instead of being rudely surprised that you no longer have a running vehicle!

You will also encounter taxes, city, county, state… as well as registration fees that must be paid in order to keep your vehicle on the road. In some areas of the country, you will also have to pay for emissions testing and any repairs necessary to in order to comply with local or state pollution regulations.

Depending on where you live and work, you might also have to allocate parking costs into your budget. In an urban environment, this can be quite expensive and should be researched prior to your vehicle purchase in order to ensure a successful auto finance experience. These costs may be hidden and often forgotten, but their affect on your budget is very apparent!

What makes these auto finance companies loan sharks? They feed off of inexperienced buyers or someone that doesn’t read the “fine print” in their auto loan agreements. Their most frequent victims are customers who are desperate to qualify for a auto loan – whether they are a first-time auto buyer without established credit, or simply have a bad credit history.

Interest rates are the maximum legally allowed and frequently contain a “clause” to allow them to repossess the vehicle very quickly, sometimes when a car payment is only one day late! Their goal in most cases is not to assist someone in actually getting a vehicle that is trustworthy and strengthening the consumer’s future credit… instead they feed on outrageous interest rates and getting cars back to sell to another unsuspecting purchaser.

Many of these sharks also “set-up” their auto buyers for ultimate credit failure. They encourage the consumer to purchase a car that is more expensive than the buyer can afford–making repossession or failure to repay the loan a matter of time. You might come out of the dealership saying… “I got such a great deal!” However later you realize that you are not capable of holding on to that dream car…. your car becomes just that–but a nightmare–not a wonderful dream come true!

We offer you an opportunity to establish or to re-establish your credit in a positive manner. Although the auto loans will be at a higher rate than for consumers with an established/good credit history, they will offer you the ability to safely build a positive credit history and lower interest rates in the future.

Our web site also has additional articles on How to Lower your Monthly Payments or Total Vehicle Cost through wise financing; What are the Forgotten and Hidden Costs of Vehicle Ownership (so you can budget for them ahead of signing for your auto loan); Trade-ins–how to make sure you’re getting your current vehicle’s true value and negotiating the best deal with your car dealer; and finally, two formulas for determining what monthly payment you can afford or be approved in obtaining your auto loan. In reading these articles, you will become a better informed consumer, but will be able to avoid many auto loan pitfalls. Why, it may even save you money–if not immediately, in your future auto loans and purchases!

Our goal is to help you find the best auto loan for your needs and help get you on the road or back on the road to financial solvency and freedom. Ultimately it is up to you to trust yourself–not the lender–learn the terms of the deal and then make an informed decision. We feel this is a team effort and would love to assist you in any way possible.

Bad Credit Auto Loans

Techniques for obtaining information

* Stealing mail or rummaging through rubbish (dumpster diving)
* Stealing payment or identification cards or the information on them (pickpocketing, “drive-by” scanning of RF-enabled cards/tags)
* Eavesdropping on public transactions to obtain personal data (shoulder surfing)
* Stealing personal information in computer databases (Trojan horses, hacking)
* Infiltration of organizations that store large amounts of personal information
* Impersonating a trusted organization in an electronic communication (phishing)
* Obtaining castings of fingers for falsifying fingerprint identification.
* browsing social network (MySpace, Facebook, Bebo etc) sites, online for personal details that have been posted by users
* Simply researching about the victim in government registers, at the internet, Google, and so on.

Legal response

The increase in crimes of identiy theft lead to the drafting of the Identity Theft and Assumption Deterrence Act.[3] In 1998, The Federal Trade Commission appeared before the Subcommittee on Technology, Terrorism and Government Information of the Committee of the Judiciary, United States Senate.[4] The FTC highlighted the concerns of consumers for financial crimes exploiting their credit worthiness to commit loan fraud, mortgage fraud, lines-of-credit fraud, credit card fraud, commodities and services frauds. The Identity Theft and Assumption Deterrence Act (2003)[ITADA] amended the U.S. Code, s. 1028 – “Fraud related to activity in connection with identification documents, authentication features, and information”. The Code now makes possession of any “means of identification” to “knowingly transfer, possess, or use without lawful authority” a federal crime, alongside unlawful possession of identification documents.

In the USA, until 2003, dealing with consumer crimes involving legally attributed personal identifiers was the jurisdictional responsibility of the local and state authorities. Identification documents are a different story, addressed in Title 18 > Part I > Chapter 47 s.1028 of the U.S. Code. The unlawful use of identification documents is historically a federal offence. In response to the consumer issue of “identity theft”, the U.S. Congress passed the Identity Theft and Assumption Deterrence Act (2003) amending Title 18 > Part I > Chapter 47, s. 1028 to include the unlawful use of a “means of identification” [s,1028 (d)(7)] making it a federal crime alongside identification documents. The title of s.1028 is, “Fraud related to activity in connection with identification documents, authentication features, and information”. The Act also provides the Federal Trade Commission with authority to track the number of incidents and the dollar value of losses. There figures relate mainly to consumer financial crimes and not the broader range of all identification-based crimes.[5] Punishments for the unlawful use of a “means of identification” were strengthened in s.1028a, allowing for a consecutive sentence under specific conditions of a felony violation defined in s. 1028c.

If used to commit another crime in the commission of identity theft in the United States (if charged federally) include:

* Class B Felony: 6-20 years in Jail and a fine up to $10,000
* Class C Felony: 2-8 years in Jail and a fine up to $10,000

If charges are brought by state or local law enforcement agencies, different penalties apply depending on the state.

The Fair Credit Reporting Act (FCRA) is an American federal law (codified at 15 U.S.C. § 1681 et seq.) that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States.

Consumer reporting agencies (CRAs) are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes. They hold the databases which are the origins of a consumer’s credit report. CRAs have a number of responsibilities under FCRA, including the following:

1. Provide a consumer with information about him or her in the agency’s files and to take steps to verify the accuracy of information disputed by a consumer. Under the Fair and Accurate Credit Transactions Act (FACTA), an amendment to the FCRA passed in 2003, consumers are now able to receive one free credit report a year. The free report can be requested by telephone, mail or through the government authorized website, annualcreditreport.com.
2. If negative information is removed as a result of a consumer’s dispute, it may not be reinserted without notifying the consumer within 5 days, in writing.
3. CRAs may not retain negative information for an excessive period of time. The FCRA spells out how long negative information, such as late payments, bankruptcies, tax liens or judgments may stay on a consumer’s credit report – typically 7 years from the date of the delinquency. The exceptions: bankruptcies (10 years) and tax liens (7 years from the time they are paid).

The 3 big CRAs Experian, Trans Union and Equifax, do not interact with information furnishers directly as a result of consumer disputes. They use a system called E-Oscar.

An information furnisher, as defined by the FCRA, is a company that provides information to consumer reporting agencies. Typically, these are creditors, with which a consumer has some sort of credit agreement (credit card companies, auto finance companies and mortgage banking institutions, to name a few). However, other examples of information furnishers are collection agencies (third-party collectors), state or municipal courts reporting a judgment of some kind, past and present employers and bonders. ]]> http://pierremoneymartblogs.com/index.php/2009/05/08/fair-credit-reporting-act-2/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/08/although-there-is-no-universal-definition-simply-stated-it-occurs-when-someone-fraudulently-assumes-another%e2%80%99s-identity-in-the-physical-world-a-person%e2%80%99s-identity-is-concrete-and-i/ http://pierremoneymartblogs.com/index.php/2009/05/08/although-there-is-no-universal-definition-simply-stated-it-occurs-when-someone-fraudulently-assumes-another%e2%80%99s-identity-in-the-physical-world-a-person%e2%80%99s-identity-is-concrete-and-i/#comments Fri, 08 May 2009 22:57:54 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=810

Although there is no universal definition, simply stated, it occurs when someone fraudulently assumes another’s identity. In the physical world, a person’s identity is concrete and is supported by legal documents.

In the online world, how ever, a person’s identity is less tangible. Some digital data, such as passwords, account names, screen names, and logins, may not be considered elements of a person’s legal identity. Yet such data can be “identifying” and provide access to other When a person asserts an identity to another party, the latter authenticates the farmer’s identity in one of three general ways.

The most common method for two parties who have no previous relationship is to use an identifying document such as a card, badge, or license. Another method involves some
kind of secret knowledge, such as a password, handshake, obscure fact, or personal knowledge. Finally, they can use physical characteristics and recognition, especially between individuals who have an established relationship.

Prevent identity theft. One of the most damaging crimes in the world today is identity theft. Similar to someone robbing your home, when a thief steals your identity, it can feel like a personal, intimate attack on your person. But unlike a break-in, an identity thief can continue to manipulate, rob and terrorize you for years after the initial theft occurs. The impacts of identity theft are growing and as the Internet becomes more prominent in our lives, so too will identity theft makes its way into our everyday lives.

Identity theft is when a person uses your individual information in a malicious way. They can find out your name, Social Security number, credit card, mother’s maiden name, email address, mailing address and much more. Once they have this information, it is a race against time as they buy cars, electronics, open new credit cards and much more with your information. Sometimes, you won’t find out about the financial issues until years after it has occurred. ]]> http://pierremoneymartblogs.com/index.php/2009/05/08/although-there-is-no-universal-definition-simply-stated-it-occurs-when-someone-fraudulently-assumes-another%e2%80%99s-identity-in-the-physical-world-a-person%e2%80%99s-identity-is-concrete-and-i/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/05/bad-credit-car-loans/ http://pierremoneymartblogs.com/index.php/2009/05/05/bad-credit-car-loans/#comments Wed, 06 May 2009 00:56:20 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=804

Everyone needs a car irrespective of his or her credit score. Having a bad credit score does not take away your right to own a car. A bad credit history may include arrears, default, county court judgements, bankruptcy, etc. Due to some unavoidable circumstances, you may miss out at your monthly repayments. This is bad for your credit score. A late payment has an adverse effect on your credit score. Default on the loan repayment is even worse.

Another thing that has a negative effect on the credit score is bankruptcy. If you find it difficult to pay monthly installments because of high rates of interest, you can take out a low rate loan and consolidate your debt into a single, affordable loan. If even this does not help, then you will have to file for bankruptcy. When you are declared bankrupt, you are discharged of all your debt obligations. However, bankruptcy remains on the credit score for a number of years. During all this period, you will find it very difficult to obtain a fresh loan.

Do not get depressed. You can take out a bad credit car loan to buy a car. Bad credit loans are specifically given to those who have a bad credit history. The rates of interest on bad credit loans are higher than the rates on other loans. Before applying for a bad credit auto loan, take a look at your credit score. You might be able to repair your credit score. Talk to your lender and he might help you repay your loan. He might even waive off some part of your unpaid loan balance. Explain your reason for default and the new lender might offer you a loan at a better rate of interest.

Your next step is to find a bad credit car loan. You can apply for a auto loan over the internet. Get a car loan as per your needs and financial position. Once you get a bad credit auto loan, make regular payments as per the loan terms. This will improve your credit score. Once your credit score improves, consider refinancing your car. The second loan will carry a lower rate of interest than your first loan. This will help you save a lot of money.

The interest rate you receive from your lender is based on the following:

• Credit history
• Amount of the loan
• Federal interest rates
• Amount of down payment
• Length of loan

The more you can put down on your new car, the lower your interest rate will be. This is because you will not need to borrow as much from the lender. You will also look more reliable to the lender if you are willing to spend some of your own money when buying the car. If you have poor credit or no credit at all, you may be offered a loan at a higher interest rate. While this will cost you more money each month, once you have paid off the loan, your credit will improve. This means that you will qualify for a lower rate the next time you apply for a loan.

If you have good credit, there are ways to find lower interest rates. Start by comparison shopping when looking for lenders. Not all lenders are the same, and you may find one that can give you a great interest rate that will allow you to pay your car off sooner. Begin with your bank or credit union, then try the finance department at a dealership, and then look for lenders online that may have even lower interest rates.

If possible, wait until federal interest rates have dropped. This will also get you a lower interest rate. The last way to lower your interest rate is to take out a smaller loan by paying more upfront or by choosing a loan that will take less time to repay. Most auto loans will require you to put a minimum of five hundred dollars down on the car before you buy it. If you can put more down, your loan will be smaller, which means it will take less time to pay off.

The length of your auto loan will affect the interest rate you receive as well as your monthly payment. Auto loans are usually available in two, three, five, and seven year loans. The longer the loan term, the less your monthly payment will be. You will be paying more in interest costs, however. You should choose the length of your loan carefully. While you may want to pay your car off as soon as possible, you want to also make sure that you can make consistent monthly payments. Choose a monthly payment that you are able to comfortably pay each month.

Even though you may have taken out a five year loan, you may be able to make double payments or pay a little more each month so that the loan will be paid off faster. If you earn a promotion or find a better paying job, this may be the perfect opportunity to pay your car loan off. It is important to check your loan agreement, however, to make sure that there aren’t any prepayment penalties. This will actually cost you more to pay the loan off before it is due.

Now that you understand what loan terms are and how they can affect your auto loan, you should create a budget to determine your monthly payment including interest and car insurance. If you have been pre-qualified for an auto loan, this will give you a price range to stay inside when looking for a car. This will also help reduce the amount of time it will take to find a car. Your budget should also contain monthly bills, living expenses, and other loans you may have. Compare your monthly outgoing expenses to your current income. This will give you an idea of what to expect when it comes time to begin repaying your loan.

Repaying an auto loan is a great way to improve or build credit. There is a lot of responsibility that is required when you take out an auto loan. One or two missed payments and your car may be repossessed. Avoid this by making regular monthly payments for the life of the loan. Building solid credit may take a few years, but if you pay all of your bills and keep your monthly spending to a minimum, you will qualify for future loans, including car loans and mortgage loans, that have a lower interest rate, which will allow you to pay the loan off sooner.

The Debt Reduction Calculator spreadsheet for Microsoft Excel helps you plan how to reduce credit card debt, auto loans, student loans, and other debts. The spreadsheet lets you choose from various debt reduction strategies, including the popular debt snowball strategy (paying the lowest balance first) and the highest interest first strategy. Easily print a debt snowball payment schedule to help you keep track of your progress. The Snowball Growth Chart lets you visualize how your snowball grows over time as you wipe out your debts. Version 1.2 includes templates for OpenOffice.

Click here to download

Pierre Auto Loans is known for helping thousands of people with bad credit obtain new or used auto loans every month with low auto loan rates they only dreamed of.
Our ability to find you a low rate auto loan for bad credit is made possible with the largest auto loan lender and dealer network online. We do provide online auto financing for any credit but our specialty is the best bad credit auto loans anywhere.

If you have never experienced actually having fun when it comes to buying a car, we are about to change that. Pierre Auto Loans invites you to try our free auto loan calculator so you can find out how much of an auto loan you might need to fit into your budget. Then you can apply with our fast, easy, free online auto loan application. It’s not uncommon to get approved for new or used auto loans in the same day. Isn’t it time you eliminated the headaches, hassle and sometimes embarrassment of shopping for auto loans the old way?

Banks and finance companies aren’t the pushovers they once were, especially for borrowers with dinged credit or who can’t come up with at least $1,000 for a down payment (cash or trade-in value).

But most buyers — those who can bring a few bucks and average credit to the showroom — can finance a new ride on surprisingly good terms.

Our most recent survey of major auto lenders found most borrowers with credit scores of 700 or better will pay no more than 7%, even on five-year loans.

Take advantage of one of the generous cut-rate financing deals virtually every automaker is offering, and you could pay anywhere from 0% to 4.99%.

Combine that with a big-time rebate and some savvy negotiating, and you’re in a position to drive away with a very good deal.

Simply put, the car companies are desperate for your business.

Not too long ago, we were buying 16 million new cars and trucks a year. Now we’re buying 9 million. Maybe 10 million.

Sales at the American car companies are off by almost half. Even Toyota sales are down by more than a third.

As a result, automakers are providing buyers with hefty rebates, low-interest financing or both — something you could rarely get in the past.

The average discount reached a record $3,169 in March, according to Edmunds.com, a Web site that tracks auto sales data.

Hyundai has been very successful with a new type of incentive that tries to overcome the biggest fear of many new car buyers: What if I’m laid off?

If you finance a new car or SUV through the automaker, the Hyundai Assurance program allows you to return it within the first year of ownership if you lose your job, file for bankruptcy or suffer a major illness or accident.

The program provides a $7,500 allowance to cover the difference between what you owe on the car and what it might be worth at the time you bring it back. (If the difference between what you owe and the car’s resale value is more than $7,500, you must pay the additional amount.)

Ford and General Motors have countered with plans that will make the car payments for buyers who get laid off.

We’ve even seen a few signs that financing is more available for borrowers with bad credit than it was last fall.

For much of 2008, GMAC wouldn’t finance anyone with a credit score below 700 — just a few points lower than the average credit score of about 720.

But in December, General Motors’ financing arm resumed extending credit to those with credit scores as low as 621. In April, it said it would consider borrowers with subprime credit scores below 620.

Unfortunately, lenders are still unlikely to finance 100% of a car’s purchase price — loans they routinely made until the banking crisis struck and the recession caused more buyers to default on their auto loans.

Edmunds.com reports that the average down payment was $3,211 in February. That’s only a little lower than the $3,511 car buyers paid in December, which was the highest average down payment since the site began tracking the data in 2002.

Unfortunately, for borrowers who can’t qualify for a loan or afford the monthly payments, leasing is no longer a cheap and readily available option.

Only one in 10 new cars and trucks are being leased — half of what we saw during the leasing boom of the late ’90s and early ’00s.

When you buy a car or truck, you pay the entire price, and the interest on any loan you take out to finance the purchase and sales tax covers the entire price.

When you lease, you only pay for the value the vehicle loses while you drive it, interest on the loan the leasing company took out to buy the car and sales tax on your part of the purchase price.

After gas prices soared to $4 a gallon, the resale value of pickups and SUVs crashed. As leases written two or three years ago expire, lenders are getting stuck with hundreds of thousands of trucks that are worth far less than they expected.

They didn’t charge nearly enough to cover that unexpected depreciation and are literally losing billions on those leases.

Chrysler Financial, for example, lost so much money on big Dodge pickups and Jeep SUVs that it stopped doing leases altogether.

Many other lenders are no longer offering leases on all models, especially American cars and trucks, or they’re offering leases with such high payments that it doesn’t make sense to get one.

You will find leases more available from Japanese or European automakers, but many require pretty large down payments that you never get back. And watch the fine print on today’s leases: One trend that’s picking up steam is a reduction of allowable annual mileage from 12,000 miles to just 10,000 miles.

If you think leasing might still be a good option for you, our 5 questions to ask before leasing can help you make sure.

If you’re ready to lease, take a look at our strategy for finding the best deal

In spite of all the gloom and doom, there are ways to come up with cash fast — and none of them involves taking out a payday loan at a ridiculous interest rate. (Well, one of them comes close.)

Here are some ideas for coming up with cash in a jiffy, whether you need a few hundred, or a few thousand, dollars:

If you need less than $200…

Redeem credit card points.

If you have a credit card that has been racking up rewards points, consider cashing them in. You can redeem points for gift certificates for things like gas, clothes, dining and entertainment — all things that wouldn’t have to come out of your household budget.

In some cases, you can even get actual cash. Citi cards offer cash rewards of $50 or $100 and even mortgage payment rewards of up to $1,000. American Express will give you gift cards or gift cheques, and they’re as good as cash.

Ask a social-service group.

There are many options if you need help with rent or utility payments.

Start by calling your municipal or county government and asking for social services. If they can’t help you directly, they can point you in the right direction. Other organizations that can provide financial assistance include walk-in ministries and food pantries, the American Red Cross, the Salvation Army and Catholic Charities.

You also can call your utility company, which may be willing to establish a payment schedule you can meet. (If you need to miss a payment as a last resort, now is the time to do it, because many states have laws preventing gas and electricity from being cut off during winter.)

Sell your stuff.

You see a lot of TV commercials these days for outfits that will buy scrap gold, so let’s start there.

Gold has been selling for more than $25 per gram recently, so that’s promising. Before you send your old jewelry off to the smelter, though, consider selling it as jewelry — not scrap.

By some estimates, you lose 75% of an item’s value by selling it for its gold content. So consider shopping your baubles around at auction houses and jewelers or offering it on Craigslist.com or eBay.

And since we’re talking about Craigslist and eBay, think about selling other stuff — books, CDs, old albums, collectibles, comic books.

If you need $200 to $1,000…

Ask friends or family.

This is a source that’s often either overlooked or dismissed out-of-hand, but it shouldn’t be. We know it can be embarrassing, but a few hundred bucks isn’t hard to part with if you have it.

Uncomfortable with borrowing (or lending) on a handshake? Virgin Money, from the same people behind Virgin Records and Virgin Atlantic airline, facilitates loans between family members and friends, for a fee starting at $99. You set the amount of the loan and the interest rate; Virgin Money gives you a promissory note and sets a repayment schedule.

Ask your employer.

If you have proven yourself to be a reliable employee, you may be able to get an advance on your salary or a loan from your employer. Larger companies often offer loans, which you would then repay through small, regular payroll deductions.

Ask a stranger.

ModestNeeds.org works much like peer-to-peer lending sites, but instead of a loan, you can get a philanthropic grant. The Web site, founded in 2002, helps “hard-working, low-income households” find money to cover living expenses, from rent to car payments to medical bills.

The maximum amount a household can apply for is $1,000 or the monthly mortgage or rent, whichever is more, and the money goes straight to the landlord, business or bank that needs to be paid. ModestNeeds points out that the smaller the request, the more likely it is to be funded.

If you need more than $1,000…

Go to your bank or credit union.

Even now, in the middle of this credit crunch, banks and credit unions have a lot of options for their customers.

Many offer unsecured personal loans and lines of credit of $2,000 to $20,000. With a loan, your bank will write you a check and set up a regular repayment plan. With a line of credit, you can tap it as needed.

(It’s not a bad idea to open a line of credit even if you don’t need it right now. You don’t have to use it, and it will be there in case of an emergency down the road.)

These loans carry interest rates of 10% to 20%, depending on your credit, and you can get access to the money almost immediately.

In some cases, you can get smaller amounts from your bank. Some, including Wells Fargo and U.S. Bank, offer short-term loans that are similar to payday loans — essentially giving you an advance on your paycheck at an extremely high interest rate.

If you have been directly depositing your paychecks for at least six months, your bank may be willing to front you up to half of the amount of your regular check.

We don’t like the fact that these banks charge a fee plus 10 percent per month. While that interest rate is painfully high — remember, you can get a personal loan for 10% per year — it pales in comparison to payday loans that can cost 400% to 800% year.

Just think of this kind of loan as a last resort.

Take advantage of peer-to-peer lending.

You don’t have to go to a bank or credit union to get a loan. You may be able to find an individual willing to invest in you. It’s happening through peer-to-peer lending Web sites such as Lending Club, Prosper and Loanio, where borrowers connect with individuals who have money to invest.

You can make your pitch for a loan to pay for pretty much anything — debt consolidation, tuition, wedding expenses. Loan limits vary, and you can have cash within two to three weeks of posting your loan request.

The fee runs about 1% of the loan total, and interest rates run the gamut. At Lending Club, rates range from about 7% to 20%, depending on the borrower’s Lending Club grade. At Prosper and Loanio, the rate depends on how many lenders bid on your loan; the more bids, the lower the interest rate may be.

Not all loan requests wind up being funded, but it’s worth a try.

If you need more every week…

Get a second job.

This isn’t as easy as it once was with the economy in the middle of a serious recession. But if you’re chronically short of cash, it can’t hurt to hit the pavement.

Don’t discount going into business for yourself as a second job. A few ideas: become a handyman, do some landscaping, shovel snow, clean houses, babysit, walk dogs, run errands for senior citizens in your neighborhood.

The upside to this approach? You can work on your schedule, so it doesn’t have to interfere with your real job, and you should be paid quickly and potentially in cash.

Boost your take-home pay.

If you get a tax refund every year, it’s only because you’re letting the government take too much money out of your paycheck. Adjusting your deductions could boost your take-home pay. You just need to visit your human resources office to file a new W4 form to change the number of allowances you’re claiming.

Each allowance you claim decreases how much tax is withheld from your check every week — and increases your take-home pay. You can’t just make up how many deductions you want to take; there are some restrictions.

Try an online calculator to help figure it out. There’s a simple one at Kiplinger.com or you can go the more complicated route with the IRS.

No one asks if you want one. No one tells you when you get one. No one tells you what it is unless you pay to find out.

Yet this measure of your money management determines whether your application for a credit card, auto loan or mortgage is approved or rejected. Insurers use it to set premiums, and employers look at it when you apply for a job.

Our reports will help you learn more about:

* What goes into your credit score.

* Where to find free copies of your credit reports.

* How to get your credit score.

There are no shortcuts to improve a less-than-stellar credit score. Don’t even think about wasting money on credit repair companies promising to fix your history for a fee.

To improve your credit score, follow our 7 smart moves:

Smart move 1. Correct any errors on your credit reports.

Order free copies of your credit reports from Annualcreditreport.com and read them thoroughly to find errors. Removing inaccurate information can give your credit score a bump in about 30 days and costs nothing but postage. Just mark up your credit report with the errors you found, write a letter that explains the problems and ask the credit bureau to investigate.

Here is a form letter that tells you exactly what to say and where to send it. Be sure to enclose any proof you have to back up your claims and use certified mail with return receipt requested so you have a record that the bureau received the letter.

Smart move 2. Pay all of your bills on time.

We know you have a lot going on in your life. Bills get misplaced and writing checks is a pain. But you need a system to get every bill to every creditor, before the due date on your statement. (Our no more late fees worksheet may be able to help.)

More than a third of your score is based on your payment history, and the formula is heavily weighted toward your most recent record. Paying all of your bills on time for just six months can boost your score.

All late payments are equally damaging to your credit score, so do everything on time: Pay utility bills, pay parking tickets and even return library books before their due date.

Smart move 3. Use every credit card you have.

Credit cards that never see the light of a cash register don’t contribute to your payment history. Rotating charges among all your cards, and making all of the payments on time, can build a good payment history more quickly.

Smart move 4. Pay down credit card balances.

The next biggest factor in determining your credit score is how much of your available credit you’ve tapped. If you owe $6,000 on a card with a $10,000 credit limit, that means you’ve used half of your available credit — and that’s too much. Try to keep your debt-to-available-credit ratio below 50% on every card.

These calculators can help you find the fastest, cheapest way to repay a single card or all of your cards.

Smart move 5. Don’t apply for credit on a whim.

Your mailbox may be full of credit card applications offering low, low rates for a few months. And cashiers often push you to get a store charge card when you check out, tempting you with a discount on your purchase if you’ll just fill out their form. But if banks and stores are constantly asking the credit agencies for your credit history, your score suffers. As a general rule of thumb, figure that every inquiry costs you 10 points.

Smart move 6. Ask to have a repaid debt taken off your credit history.

If you’ve mended your past-due ways and brought a delinquent account up-to-date, ask the creditor to remove unflattering entries from your credit reports. You’ll have the most leverage if it’s an active account that you’ve paid on time for at least a year.

Just write a letter and ask. It’s certainly better than allowing a bad debt to sit on your credit report until the agency removes it after seven years.

Smart move 7. Become a cosigner on an established credit card.

The account will appear on your credit history with the original opening date (not the date when you were added to the account) along with its entire history of on-time payments. That can add 30 to 45 points to a poor credit score.

You’ll need a spouse, parent or astoundingly good friend who’s willing to add you to their account as a cosigner with legal responsibility for the debt. Being an authorized user, someone who can make purchases with the card but isn’t responsible for making the payments, will no longer help with your credit score.

Will all of this really work?

Our three favorites — the Honda Fit, Nissan Versa S and Scion xD — are chic five-door hatchbacks that are fun and affordable to drive.

Buy one, and you’ll be shocked at how little they have in common with the boring, low-rent econoboxes you remember from just a few years ago.

Honda Fit

Finding a Fit in your favorite color may be a challenge. Demand is that outsized for this sophisticated and intelligently packaged hatchback.

It’s fun and practical, with fuel economy better than just about anything this side of those pricey hybrids, plus a jackpot of standard features, all housed in an enlarged interior and exterior that makes the all-new 2009 Fit even better than the wildly popular first-generation model.

Plus, it’s got “Honda” written all over it in quality, reliability and respectability.

All of our favorites come with four-cylinder engines. Though the Fit’s 117-horsepower, 1.5-liter engine is the smallest of the bunch, it gets the best mileage — an estimated 28 miles per gallon in the city and 35 m.p.g. on the highway.

The Fit remains small and nimble, but the ‘09 is a little longer and roomier, with more rear legroom and cargo space behind the backseats.

The brakes prudently and responsibly feature an antilock system (ABS) that allows you to steer around trouble even as you lay into the brake pedal with all your might. We just wish all of our favorites would put disc brakes on all four wheels instead of opting for cheaper drum brakes on the rear.

Though the 2009 Fit’s safety ratings haven’t been determined, earlier models had five-star ratings all around. The new design includes side-impact air bags for front occupants and head-protection curtain air bags all around.

Standard Fit features include air-conditioning; power windows and door locks; a 160-watt AM/FM/CD audio system with a USB port to jack in an iPod or other personal electronic device; revised, more-comfortable front seats, and improvements to the Fit’s already nifty 60/40 split-folding, rear-seat design that quickly allows you to configure the cargo area in one of four ways.

The significant new addition to the Fit lineup is a navigation system for Fit Sport models. You can’t get stability control, a critical safety-enhancement, without buying the navigation system.

Unfortunately, that and a five-speed automatic transmission push the price for a top-of-the-line Fit to $19,340, including the $670 destination charge. We think that’s too much for a budget-sensitive car like this.

The regular Fit Sport with automatic transmission is a more reasonable $17,580. But most of the same wonderfulness is available in the base model that costs $15,420 with an automatic transmission.

That’s what we’d buy.

Nissan Versa S

Nissan Versa Starting at just $13,685 including destination, the Versa S underscores Nissan’s reputation for delivering a lot of car for the money — in this case, the lowest price of our three favorites.

But don’t be deceived. The Versa offers just about everything the others do, plus a few things they don’t, such as the added flexibility of a six-speed manual transmission.

For 2009, antilock brakes remain a $250 option we never would omit, and cruise control at $200 is a must for long-haul drivers. But aside from that, the Versa S earns full marks as a class competitor, making it our bargain recommendation.

In addition to being a standout for price, the Versa stands head and shoulders above the competition in terms of headroom and legroom. Rear-seat legroom is nothing shy of a blessing for adults, thanks to the 102.4-inch wheelbase (versus 96.5 for the Honda Fit and 96.9 for the Scion xD). And when you’re not hauling people, you can pack 50 cubic feet of cargo into the back. That’s roomy.

Even though it looks sporty in a European, hot hatchback kind of way, the Versa isn’t really a performance vehicle. The ride is pleasantly comfortable, but carving up corners and braking on a dime are not its strengths.

Working with the six-speed manual, the 1.8-liter, 122-h.p. four-cylinder performs as you’d expect from a commuter car — think solid performance with no outstanding virtues or vices, including its fuel-economy (26 m.p.g. city/31 highway).

For those really looking to squeeze the m.p.g. sponge, you can pay an extra $1,000 for the continuously variable automatic transmission and boost your fuel economy to 27 m.p.g. city and 33 m.p.g. highway.

Even if you spend the $1,000 to get the four-speed automatic transmission, the Versa S comes with plenty of comfort and convenience — air-conditioning, an AM/FM/CD sound system and 60/40-split, fold-down rear seat are all standard.

If safety is your primary concern, the Versa will impress with front-seat-mounted, side-impact and curtain-type air bags protecting both rows of outboard occupants from flying glass and debris in the case of a side-impact collision or rollover.

Unlike the Honda Fit, the Versa offers appealing options, including a rear roof spoiler ($250) and cruise control ($200), as well as some bundled appearance and features packages that you may want to invest in with the money you save buying a Versa in the first place.

Scion xD

Toyota Scion xD The xD was all-new last year as a replacement for the xA hatchback and rolls into ‘09 with no changes other than a marginal $100 price increase (and a $50 hike for destination, a profit-bumping ploy you’ll see this year throughout the auto industry).

The xD is markedly larger and plumper than the old xA, but it’s much more finished feeling, too.

Scion’s pitch to younger buyers is the ability to accessorize, and the list of add-ons for all its models is as long as your arm. A cursory list of xD add-ons includes a navigation system that incorporates a thumping upgrade of the stereo, XM or Sirius satellite radio and a bunch of cosmetic options that we wouldn’t buy but that can make the car feel more customized, if that’s important to you.

While unconventional, the Scion’s neo-box exterior tries a little too hard to be hip. Thankfully, the interior tells a different story. The xD’s insides are downright attractive, with sport front seats and a terrific 160-watt, six-speaker AM/FM/CD stereo with iPod/MP3 playback capability.

As a performance beast, the xD holds its own. A 128-h.p., 1.8-liter four-cylinder engine is nicely matched to the five-speed manual transmission. The combo gets 27 m.p.g. in the city and 33 m.p.g. on the highway. A four-speed automatic transmission adds a reasonable $800 to the cost and subtracts just 1 m.p.g. from the mileage ratings.

The Scion’s 16-inch wheels and tires also give it a comfortable confidence at higher speeds that the Honda and Nissan can’t quite match.

Safety equipment is as good as it gets in this class. Scion is the only one of our favorites to provide standard antilock brakes and offer a traction and stability control system as an option ($650).

Given the fine driving environment and the generous list of safety and convenience features, the xD is a great choice if you’re looking for a lot of standard equipment.

The starting price of $15,320 ($16,120 with the automatic transmission) buys a lot of fuel-efficient car, and about the only option or accessory we’d deem vital is the stability-control system, which would make the xD an entertaining, useful and safe runabout for around $16,000.

Depending on the contents of the automakers’ proposals, consumers could benefit with program incentives designed to bring buyers back to the sales lots of Chrysler and GM dealerships. Although the Detroit News reports that auto loans have reached their highest rates in 25 years, it certainly appears that struggling auto companies could face their own demise if they don’t come up with a plan for providing low interest auto loans and other incentives for generating sales.

Low Interest Auto Loans: Don’t Stop with Dealerships

Today’s tight credit climate likely requires good to excellent credit to for getting low interest auto loans, but it can pay to shop around. Consumers can comparison shop with  financial institutions to compare rates on auto financing. Options will be fewer with bad credit, but it’s important to keep in mind that interest rates are not the only consideration when seeking savings on an auto purchase.

Before setting foot on a car lot, the Boston Herald suggests doing plenty of comparison shopping between dealerships and also to compare deals on new cars and used cars. When comparing the actual cost of buying a car, it’s important to factor in the down payment, dealer documentation and registration costs, and the terms of financing. Depending on local sales tax rates, traveling to a dealership outside of an urban area can potentially increase savings.

Bad Credit? Savings may be Possible

Depending on what happens with individual auto makers, it’s possible that ongoing cost-cutting trends could expand to consumers with fair to bad credit.  Models may be discontinued, or that auto dealerships will be consolidated. Bad news for the auto companies may portend good fortune for auto shoppers. Although there’s no way to know for sure, incentives for selling discontinued models and liquidating inventory could set the stage for more flexible auto loan terms offered by auto makers and dealerships. In the meantime, shopping auto loan rates online can provide an idea of what it will cost to finance a new or used car. GMAC’s website notes that shopping local rates can facilitate negotiations for getting the best deal on purchasing a car and getting an auto loan.

Sales figures confirm the challenges faced by automakers and consumers alike. During remarks made at his first online town hall meeting, President Obama noted that since the economy flattened, US auto sales have decreased from 14 million to 9 million units. He cited tight credit climate and consumer reluctance to buy big-ticket items when they might lose their jobs. This suggests that unless credit and consumer confidence are restored, the US automakers could experience problems far worse than those created by gas prices.

In more dire news concerning auto loans, credit reporting firm Experian reports that the number of auto loans 60 days delinquent increased by approximately 17% during the 4thquarter of 2008. This could lead to more people with bad credit as defaulted auto loans are reported to credit bureaus.

Auto Loans for People with Bad Credit?

Regardless of their credit scores, many Americans rely on their vehicles for commuting to work and taking care of their families. The notion that auto loans can be restricted only to those with good credit seems counterproductive in the current climate of slumping auto sales. The pro-consumer credit education website credit karma  reports that as of February 2009, the average US consumer credit score is 695. What about all of those people with bad credit who drive cars?

Balancing Risk with Recovery

As financial entities continue to fail or are bailed out by the government, credit providers are finding themselves between a rock and a very hard place. making autoloans to people withbad credit is traditionally viewed as being a higher risk, but it’s time for lenders and automakers to come up with financing programs that can help increase auto sales and consumer confidence while minimizing credit risk. A continued stalemate between lenders and bad credit borrowers is one more obstacle facing the troubled auto industry. Any ideas, anyone?

The Detroit Free Press recently reported that GMAC has agreed to relax credit standards to accept applications from GM customers wth credit ratings 620 and less. This move is designed to  boost GM sales while providing a source of auto loans to those with credit problems. This can be seen as good news for the auto industry, auto lenders and consumers, as it promotes cash flow that contributes to improving overall economic conditions.  GMAC’s decision should increase the base of potential qualifed buyers, which now includes customers who need a bad credit auto loan to buy a car.

Bad Credit Auto Loan Opportunities Essential for Consumers

Not everyone caught up in the credit crunch has mis-used credit. Some folks have lost their jobs, become ill, or incurred too much debt making ends meet between jobs. Plummeting home values have snatched away access to home equity financing, and many consumers have found themselves strapped for cash with fewer credit options. GMAC’s decision to provide financing for consumers facing credit challenges is a constructive step toward freeing up credit, and improving the economy.

Bad Credit: Understanding Credit Scores

Federal law permits consumers to request a free credit report from each of the three major credit bureaus each year. Although there is a fee for credit scores, reports and credit scores can be obtained at the annualcreditreport.com website. This is the official portal for ordering credit reports directly through credit bureaus; it does not require enrolling in a credit monitoring service. Determining credit scores before shopping for auto loans can help in finding the best auto loan terms available, and identifying affordable price ranges. Establishing a spending limit and maximum payment amount before shopping for a car and financing is useful for narrowing your search for a new or used car.

Auto Loan Shopping Technique: Comparing Rates and Terms

Financing companies including GMAC help dealerships increase their sales, but comparison shopping between auto dealership financing and other sources is a good idea. Credit unions  offer favorable pricing, and some banks offer better rates for multiple accounts. For instance, Establishing multiple  accounts through the same bank may lead to reduced rates for an auto loan. Comparing and printing out auto loan terms online before visiting dealerships. Negotiating for auto loan terms can help in securing an affordable auto loan that makes owning a new car accessible and enjoyable.

About Author:

Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage lending and loss mitigation. She enjoys writing articles about personal finance and debt management. Karen holds an MA degree in English from the University of Nevada, Reno.

You should be aware of the fact that car loans are extremely common, about 70% of all new cars are financed. A number of used cars are financed as well. There are a large number of options for auto financing these days. For instance, you can obtain your loan from a bank, finance company, credit union, or even a professional organization that you happen to have membership in. It is also possible to obtain financing through the auto dealership. You may also decide to finance your car through a home equity loan, which can provide you with an exceptional interest rate.

Interest Rate Know-How

You should know at the outset that your interest rate may vary depending on whether your car is used or new. The interest rates for new vehicles tend to be lower than those for pre-owned vehicles. Also, loan terms tend to be more generous for new cars and trucks than for used models.

Lengthy Loans

If you have a particularly lengthy loan term, it will cost you more money in the long run. There is actually a trend nowadays for longer loans, some run as long as 84 months. This is because many people make the mistake of thinking that they can afford a more expensive car if the payments are spread out over a longer period of time. However, if you truly believe that it would take you seven years to pay off a car loan, you might be better off, financially speaking, opting for a less expensive vehicle. This may be particularly true, given the fact that a lengthy loan may require an incredibly high interest rate.

Tempting Incentives

There are some car dealers who claim that they will pay off the balance of your car loan, no matter what the amount of money left on it. However, if you agree to such a deal, you will simply be transferring your remaining balance onto your new car loan. This means that, if you’re interested in purchasing a $19,000 car, but you still have $3,500 left on your current car loan, you’ll be taking out a $22,500 loan in order to cover your expenses.

Such a program is not attractive in the long run. You would be much better off if you simply waited to pay off your outstanding balance before purchasing a new vehicle. If you simply cannot wait to buy another car, consider one that is more affordable. Otherwise, you could find yourself falling even farther down the economic ladder.

With some smart strategic planning, you can obtain an auto loan that will leave you in a good financial position in the years ahead. Considering the fact that cars tend to lose their market value quickly, a cost-efficient car loan may be one of the best financial decisions you’ll ever make.

CAR BUYING: You own the vehicle and get to keep it at the end of the term.
Up-front Car Costs
CAR LEASING: Up-front costs may include the first month’s car payment, a refundable security deposit, a capitalized cost reduction (like a down payment), taxes, registration and fees, and other charges.

CAR BUYING: Up-front costs include the cash price or a down payment, taxes, registration and fees, and other charges.
Monthly Car Payments
CAR LEASING: Monthly car lease payments are usually lower than monthly car loan payments because you are paying only for the vehicle’s depreciation during the car lease term, plus rent charges (like interest), taxes, and fees.

CAR BUYING: Monthly car loan payments are usually higher than monthly car lease payments because you are paying for the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.
Early Termination
CAR LEASING: You are responsible for any early termination charges if you end the car lease early.

CAR BUYING: You will be subject to a buy-out charge if you end the car loan early.
Vehicle Return
CAR LEASING: You may return the vehicle at lease end, pay any end-of-lease costs, and “walk away.”

CAR BUYING: You will have to sell or trade-in the vehicle when you decide you want a different vehicle.
Future Value
CAR LEASING: The lessor has the risk of the future market value of the vehicle.
Mileage
CAR LEASING: Most car leases limit the number of miles you may drive (often 12,000-15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly payment. You will likely have to pay charges for exceeding those limits if you return the vehicle, usually 10 to 15 cents per mile.

CAR BUYING: You may drive as many miles as you want, but higher mileage will lower the vehicle’s trade-in or resale value.
Excess Wear
CAR LEASING: Most car leases limit wear to the vehicle during the lease term. You will likely have to pay extra charges for exceeding those limits if you return the vehicle.

CAR BUYING: There are no limits or charges for excessive wear to the vehicle, but excessive wear will lower the vehicle’s trade-in or resale value.
End of Term
CAR LEASING: At the end of the car lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another vehicle.

CAR BUYING: At the end of the car loan term (typically 4-6 years), you have no further car loan payments.

PierreMoneyMart.com is here to help during this crisis. We understand that you are struggling with the new economic pressures that are building up on your shoulders. However, we can help. We offer thousands of car loans for people with bad credit, just like you. No one wants to be in this situation, but we can make it a little easier to bear.

We have one of the quickest online lending services around. Time is money, and we know you do not have time to run from business to business, trying to get auto loans for bad credit for people who have no sympathy for your situation. We understand that dealing with the yellow pages is frustrating and time consuming, and that many online lenders scare you with their lack of security or trustworthiness.

Simply fill out our online loan application to get started. PierreMoneyMart.com offers you, the customer, the cheapest car loans around. This is because we work with only the best lenders across the nation. We work to get the best deals so that the savings can be passed down to you. To fill out the online application, you just need to give your first name, last name, the state in which you reside, your zip code, and your email address to get started. There is no paperwork involved, and you do not have to worry about faxing us various documents. We do not do credit checks on you, which is one of the reasons we are able to give you such cheap car loans without a problem!

PierreMoneyMart.com offers you, our customer, the ability to apply for refinance auto loan with bad credit for free. Our online loan application is secure and protected from online identity thieves and others that you do not want to access your information. We offer bankruptcy car loans every day with this process. There is no bothersome paperwork to fill out and confuse you; there are no documents that you need to fax. You just give us your first name, your last name, the state in which you reside, your zip code, and your email address. It’s that simple to get started!

We know that your situation is unique, therefore, we have customer service standing by to help you with any questions you may have during the process or with your loan at any time. We have people that work hard to understand your individual situation for your poor credit car loans so that we can provide you with the very best loan. We offer payment options that are flexible enough to fit your needs, regardless as to what they are. We know bankruptcy and bad credit is hard to overcome, so why have even more trouble paying the loans back off? PierreMoneyMart.com is here to help.

We do not do any credit checks on you when you apply. This lack of credit checks is key to our ability to get you the car loans for bad credit that you need. We are not like banks that will turn you down simply because you need bankruptcy auto loans. We understand that emergencies arise, and that even bad credit can happen to good people just like you.

We work together with hundreds of lenders all across the United States to get you the best loans we can find, regardless of your credit rating. PierreMoneyMart.com is located nationwide as well, giving you the confidence to know that we will get you a loan that will work no matter which state you reside in. We are able to give you loans in less than an hour when you have been approved online for a loan, getting the money to you by the next business day. The only thing you have to do to see what types of loans we can offer you is get started and fill out our free, simple, and easy to use online application today!

Good Car, Bad Credit
• Intro
• Know your Credit Score
• How Bad is Bad?
• Bank vs. Dealer Financing
• Look Forward to Refinancing
• What NOT to Do
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• FICO At A Glance
One common shady practice dealers engage in is to let you leave the lot with a contract that isn’t final. In this underhanded routine, you sign a financing agreement “subject to final approval” rather than a binding deal. The dealer then lets you take possession as though you had a binding agreement.

You drive off happily in your new car, then get a phone call telling you that the financing wasn’t approved. You go back to the dealer and are then slapped with a much higher interest rate than you’d originally expected. This is a nasty trick. Don’t fall for it.

• Don’t rely on verbal assurances. Many people, especially those with bad credit, are hustled by dealer finance managers who smooth over ugly parts of a finance contract.

One PierreMoneyMart.com reader wrote to us to say that a dealer first tricked her into making her roommate a co-signer, then left the two with a loan for which the roomie was primary borrower (overextending the roommate’s credit, tangling her legally and ruining the friendship). All along, the dealer had told our reader that the roomie was not being listed as the primary borrower. These kind of things can happen to you easily if you take someone’s word at finance closing time.

• Know the market. Don’t accept a finance contract without checking to see what the going interest rate is for your credit category. Dealers may try to psych you out by throwing out an extremely high interest rate number and insisting that’s the best they can do.

The truth is, they’re tacking on several points of interest onto the loan over what the bank offers, and pocketing the difference. And the more desperate you seem, the higher interest number they’re likely to quote. While a dealer will almost certainly add some additional interest to the loan, you don’t have to let them get away with financial murder.

To get a real-time snapshot of average car loan interest rates for your FICO score, use the loan calculator available at MyFICO.com. That way, you’ll have a good idea of whether the lender or dealer finance manager is in the ballpark.

• Skip the extras. Don’t sign up for add-ons like extended warranties, GAP insurance or credit life policies. They generally aren’t worth what you paid for them. And no matter what the dealers tell you, you are not legally required to purchase them.

“The finance manager will state that these will only cost you an extra $5-20 per month, and that you’ll never miss it, but since you are paying interest on these rip-off insurances, it may cost you as much as $1,000 over the course of your loan,” says Richard Krawczyk, Ph.D., author of “Financial Aerobics – How to Get Your Finances into Shape.”

• Make sure you know whether your loan interest is precalculated. In far too many cases, people with bad credit end up with a loan where the interest is pre-calculated. When loans have pre-calculated interest, your payments may go solely to interest for as much as one-half of the life of the entire loan.

Try to retire the loan early, even to refinance, and you may end up owing much more than you thought. Don’t get a rude shock — while you may be forced to take out such a loan, be very clear up front what you’re facing.

• Watch out for penalties. Know whether there’s a prepayment penalty written into your contract.

Depending on how bad your credit is, you may want to go ahead and accept a loan that includes prepayment penalties. But be prepared: if you pay the loan off early, you may face an additional charge of $25 to $200. This may or may not be significant to you, but it’s best not to face any surprises at payoff time.

Lets first look at bad credit loans. Find out what the sub-prime market has become and how you can still get easily approved loans if you follow our easy to follow steps with the following types of loans and financial products. We look at the requirements and offer solutions on how even in these bad economic times, loans are still possible. It is just a matter of where you are looking.

Most of us, however, need help recognizing when it’s time to get rid of our ride — whether it’s a 13-year-old Chrysler LeBaron convertible, a three-year-old Toyota Tacoma, or brand-new Mercedes-Benz GL-Class.

That’s why we’ve come up with five smart moves to help you make a hard but satisfying decision.

“Our homes reflect who we are, and our cars reflect who we wish we were,” so the sad (but true) saying goes. Here’s where a cold look in the lifestyle mirror can go a long way. Ask yourself (or better yet, ask a friend), “Is what I drive serving my current needs?”

Your Mazda Miata may have made you the King and Queen of Cool when you were single, but when you started adding little princes and princesses to the castle, that tiny two-seat sports car became royally impractical. Suck it up, daddy, and get a midsize Mazda6.

If you live in New York City, it may be time to bid farewell to that Ford F-350 Super Duty SuperCrew. Be brutally honest. You’ll be happier in the short and the long run. We know plenty of people in Manhattan who don’t even own a car, and that’s the perfect car for them.

Smart move 2. Do an economic reality check.

Make sure you own a vehicle you can realistically afford. Factor in every expense, not just the monthly payment. Include the price of insurance and maintenance, broken down to a monthly average, and don’t forget to calculate the terror of fuel costs.

Total them up and you’ve found the true cost of owning your car. If you can realistically meet this number without breaking a sweat or missing a meal, month in, month out, bravo.

But if you’re struggling to keep up with the bills, and spending $500 or more a month on your car or truck, you should replace it with a new ride that costs more like $250 to $350 a month to own.

When making this decision, follow a simple rule of thumb: Monthly payments shouldn’t exceed 8% of your gross monthly income. If, for example, that’s $3,000, then your payments should be no more than $240 a month.

Smart Move 3. Pay heed to the “Gut-Wrench-In-Its-Presence” Effect.

If merely thinking about driving your car threatens to double you over in pain, get rid of it. No joke. There is no case to be made for accepting 15,000 miles of anger a year. If you hate your vehicle — really hate it — and have no practical considerations that trump your decision making, then dump it, sell it, or trade it in. Life is still too short.

Smart move 4. Beware the “My Mechanic Knows My Credit Card Number by Heart” Syndrome.

If your car has been to the shop three times over the past year for repairs — even legitimate repairs — it’s not a normal, healthy vehicle.

We live in the glory day of automobiles, where virtually every model offers breathtaking quality and reliability. The cliche is that there aren’t any bad cars anymore, but the truth is there really aren’t even any average cars anymore.

Planned obsolescence, the automotive industry’s dastardly plan to design and build cars to last only as long as the warranty, is a myth. Bad luck, however, is not. Your vehicle may be a “Monday morning” car or an early production run of a new model (never a good bet for high quality — new models always need time to get their teething problems out of the way).

For owners of older, very used cars, this is the rule to follow: If you must make three repairs during any 12-month period that add up to the resale value of the car, cut your losses and run.

You can find out how much your car is worth at Edmunds.com or Kelley Blue Book.

Smart Move 5. Keep an eye out for the two symptoms of big trouble.

Just remember: Blue smoke = Bad news. Blue smoke out the tailpipe means you’re burning oil, which very likely indicates the oncoming need for an engine replacement. Never cheap.

Another major symptom worth paying eyes-wide-open attention to is when you notice a bit of slipping between gear changes in the automatic transmission. If you notice the engine revving without any appreciable increase in speed, that’s what a slipping transmission feels like. This problem is not quite as urgent as the engine, nor quite as expensive, but transmission replacements are never a bargain.

Either one means it’s time to sell.

Loan term may be less than that of a new car. The standard duration for financing a new car can be up to seventy-two months. In the case of private auto loans, it may not be possible to finance a vehicle for the same duration. Usually lenders are ready to finance private auto loans for at most forty-eight months, though there may be exceptions when they have been known to finance for periods longer than that. However, it is important that auto loans finance is done for as short a period of time as you can possibly afford. This is to ensure that you don’t end up in a situation where you owe more on the car than its value (upside down car loan) and to minimize the amount of interest you are required to pay.

With many lenders a down payment may not be required for person-to-person auto loans. Despite not being required, it is better to put money down. Doing this will reduce your chances of being upside down in your car loan in the future. Taxes, title and registration have to be paid separately when you purchase a new car from a dealership. The dealer normally combines taxes, title and registration fees into the loan amount. For private auto loans, the lender will not allow you to finance the fees and will require you to pay for them out of your pocket.

On purchasing a new vehicle, the title is put in your name almost immediately. When it comes to person-to-person or private auto loans, it could take longer. The owner of the car you are buying from may still owe money on the car and it could take a week or longer for completing the payoff process. His lender needs to receive the payoff amount before he transfers the title to the car owner and then it can be turned over to you. The duration of this process is mainly based on the location of the lender. In case of the local bank, this process should not take more than a few days. However if the lender happens to be in another state, it could take much longer for the transfer to be done.

To briefly sum it up, private auto loans make a good option if you are a creditworthy borrower. However id your credit happens to be less than perfect, it may be better to turn to your local dealership as the best source for an auto loan.

Once you know your score, follow these easy tips to improve your rating:

1. Pay your bills on time consistently. Late and missed payments, especially accounts that have been sent to collections, have major impacts on your score.
2. Keep balances low on all of your credit cards. Maxing out your credit cards will lower your score, possibly by as much as 70 points.
3. Avoid opening or closing a lot of new credit cards at once. It may seem like a quick fix, however a significant amount of new credit will harm your score, and closed accounts can still have an impact.
4. Use the credit you have wisely. Manage your current accounts, by making payments on time and being aware of balances and limits, to prove to lenders you are responsible with your credit.
5. Moving debt around (e.g. consolidating the debt on your cards) without paying any of it off can lower your score. Keep your debt where it is and focus on paying it off.
6. Check your credit report often to spot errors quickly and track progress.
7. Avoid credit repair agencies that promise an instant fix. Rebuilding your credit takes time, and any agency that guarantees instant credit repair is only looking to exploit people in need.

We go through our bills and find that the money just won’t stretch far enough to cover all of the bills and expenses. It’s hard to decide who you should pay when you have one bill that is stamped with “Final Notice” and you are behind on several of your other bills.

If you don’t pay the credit cards you know that you are going to start getting those harassing phone calls. If you don’t pay the house payment you are looking at foreclosure. If you don’t pay the utilities they will shut them off. How do you decide?

When you get to this point it’s time to get down to basic survival and work from there.

I have actually talked to people that stated their credit cards were up to date but their mortgage was two months behind. This is one of the biggest mistakes we can make when we don’t have the money to pay everything.

Another mistake I see on a regular basis is that some people pay their bills at the expense of their food budget.

If you have the money to pay some of your bills you have to start with groceries first and necessary health items. You can try to save as much as possible on your food but that money has to be set aside before anything else.

The next bill you must pay is your mortgage or rent. While credit cards companies will drag out their collection process, mortgage companies and landlords will start the process of foreclosure or eviction within just a couple of months.

Your next priority is your utilities. In many cases utility companies will turn off your utilities if the bill isn’t paid within a few days of receiving the bill.

Once you are sure you have enough to eat and a roof over your head you can start thinking about your other bills. The secured loans, like your car payment, should come before your unsecured loans, like your credit cards.

The reason for this is simple. Creditors that have secured property will sue or repossess much quicker than the credit card companies.

If you find yourself in this situation it is a sign that you need to do something drastic and fast. By not paying all of your bills each month they are going to add up quickly and you are going to accumulate a lot of late fees.

The best place to start is to find out exactly where you stand and what is causing the problem. This is as simple as listing your income on one side of a piece of paper and your bills on the other. Total each and subtract your bills from your income.

Whether you use my budget system or another it is very important that you start one as soon as possible. For those of you that believe a budget is to restrictive, just the opposite is true. The only way you can get what you want and know you can afford it is to have a budget in place.

It is important that you pay all of your bills on time each month. When you don’t have the money to pay everything it is vital to your survival that you pay the most important bills first.

• A debtor or a guarantor can petition for debt adjustment from the District Court in whose jurisdiction he or she resides.
• The petitioner for debt adjustment should first contact a municipal Money and Debt Advisor.
• The District Court may set a payment schedule for the debtor, laying down how he or she is to service the debts during the following years.
• The duration of the payment schedule is normally five years; during this period the debtor must assign all possible non-essential funds for servicing the debts.
• Once the debtor has serviced the debts to the extent prescribed in the payment schedule, he or she is released from liability regarding the remainder of the debts.
• The payment schedule may be altered upon petition, if the circumstances of the debtor undergo essential changes while the schedule is in effect. If the income of the debtor increases or his or her payment capability is otherwise improved, he or she must increase the amount by which the debts are serviced, as prescribed in the payment schedule.
• If the debtor fails to follow the payment schedule, it may be declared lapsed.

It’s easier to try to prevent vehicle repossession from taking place than to dispute it afterward. Contact your creditor or lessor when you realize you will be late with a payment. Many creditors or lessors will work with you if they believe you will be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later.

Still, your creditor or lessor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to repossession, you may reduce your creditor or lessor’s expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you are responsible for paying any deficiency on your credit or lease contract, and your creditor or lessor still may enter the late payments and/or repossession on your credit report.

If you need help in dealing with your credit or lease contract, consider using a credit counseling service. There are nonprofit organizations in every state that advise consumers on debt management. Counselors often try to arrange a repayment plan that is acceptable to you and your creditors. They also can help you set up a realistic budget and plan expenditures. These counseling services are offered at little or no cost to consumers. Check your telephone directory for the office nearest you.In addition, universities, military bases, credit unions, and housing authorities often operate nonprofit counseling programs. They also are likely to charge little or nothing for their assistance. Or check with your local bank or consumer protection office to see if it has a list of reputable, low-cost financial counseling services.

• Delay in disbursement beyond promised date. Just budget for at least a weeks delay in disbursement even after you have handed over all papers.
• Non disbursement despite approval. Solution – Just move your loan to another bank
• Delay in handing over cheque disbursement to the dealer (which means delay in obtaining delivery of the car) even though interest meter starts from date of cheque rather than the date on which the cheque is handed over to the dealer. There is no real solution to this problem except that you could check with the dealer if he has an account with the concerned bank in which case this delay will not happen.

SHOULD YOU CONSOLIDATE DEBT BY YOURSELF?

In short, debt consolidation programs undertaken by you are by far the cheapest form of working this useful debt management program. But, self-regulated debt consolidation programs do require a certain level of discipline. They do require you to arrange for one or two creditors to accept to take over your existing smaller debts.

They also require you to make payment to this creditor in a timely manner. In other words, there is no financial overlord looking over your spending and making sure you stick to a workable financial diet. For this reason many of us who consolidate our debt believe we have just been given a new lease of life and go out and spend, spend, spend. The net result of this is not only do we now have new debt to repay, but we also have the large consolidated debt to repay. As such, self-regulated debt consolidation may not be the most effective debt management tool.

Auto loans are our specialty. We are experts at helping individuals even with bad credit obtain car loans for the purchase of a new or used vehicle. We also help individuals refinance any of their existing auto loans or buy their current leased vehicle

Bad Credit Auto Loan

Do you have bad credit? No matter how good or bad your credit is, we will work hard to help you get an auto loan, to finance the vehicle of your dreams. Our staff will go to work to help find you the lowest interest rate and the lowest possible down payment, through our vast nationwide network of auto finance companies and local car dealers. No matter where you live we have bad credit auto loans programs available nationwide! Even if you currently have tax liens, garnishments, judgments, or a bankruptcy we could help you obtain an auto loan or refinance your existing auto loan, saving you time and money. No credit or bad credit. Auto loans programs are available for all auto loan products.

The average person carries several credit cards and runs a balance on each every month. This can translate into some pretty hefty charges over an extended period of time. That’s great for the credit card company, bad for you.

What is a student credit card?

Student credit cards are cards geared specifically toward students to help them establish credit. Credit card issuers know students generally have no credit history and little to no income, so your credit limit will start out somewhere around $300-$1000.

What are the advantages of a business credit card?

A business credit card enables you to separate business expenses from personal expenses.
Businesses with good business credit are eligible for larger loans and lines of credit at lower rates of interest. Each employee receives their own business credit card to use when making business purchases. You can monitor purchases online or using your paper statements. Many business credit cards now offer reward programs, which means you can earn free airline tickets, hotel stays, and other great rewards for all your purchases and for all your employee’s business purchases on your business credit card.

Many business credit cards now offer reward programs, which means you can earn free airline tickets, hotel stays, and other great rewards for all your purchases and for all your employee’s business purchases on your business credit card!

Credit card has been lost/stolen. What do I do?

Contact the financial institutions that issued your credit card and inform them that your card has been lost or stolen. The bank will close the credit card account, thus preventing any transactions from being charged to the account. Upon your request they will then issue you another credit card with a new account number.

Good debt helps you build assets that produce income. Bad debt drains your cash without providing future value. Let’s see that various types of debts in the following section in detail.

Good Debt:

• Home Loan: A mortgage loan is generally considered good debt. Property is a good investment when it appreciates in value. Mortgage debt is particularly good for those who buy bargains, fix them up, then resell at a profit. Mortgage interest can be tax deductible.

• Student Loans: Student loans are also considered good debt. College graduates earn 73% more than high school graduates, and advanced degree holders earn two to three times more than those with a high school diploma. Interest on student loans is generally deferred until 6 months after graduation, and interest can be tax deductible.

Bad Debt:

• Vehicle Loan: Vehicles tend to depreciate over time, especially those shiny new ones driven off the lot. Most new vehicles depreciate 20% in the first year, putting these loans in the bad debt category. However, sometimes this “bad debt” makes it possible for you to produce income, for example traveling to a job where you earn more money. You may justify having this debt, but you can probably get to work in an economy car just as easily as you can in the luxury vehicle of your dreams.

• Credit Cards: It’s no surprise that credit cards fall in the bad debt category. If you carry a balance from month to month, you’re paying more for your purchases than the original price tag. Some experts say you’re paying up to three times more, if you only pay the minimum balance due each month. Items purchased using a credit card generally depreciate in value, so you’re taking a double hit on this purchase.Credit cards can also be valuable tools to help meet short-term and unexpected needs. For example, it might be wise to take advantage of a limited-time sale on new car tires, knowing that you will payoff the card balance next month with your tax refund. The key is to match the purchase with a source of repayment. This “bad debt” turns into “not-so-bad debt” when you pay off your balance each month.

Credit union members are owners and decision-makers that have a say in their financial institution’s actions. They elect a board of directors to provide leadership and ensure that members’ views are represented.

Being an owner also means sharing in the credit union’s success. Many credit unions distribute patronage dividends to members in accordance with prudent business practices.

Democratic member control is one of seven international co-operative principles which guide credit unions as we put our values into practice. The other principles are member economic participation. autonomy and independence; education, training and information. co-operation among co-operatives, and concern for community.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.

Credit unions belong to a large co-operative network, provincially, nationally and internationally. Although decisions are made locally, this network enables credit unions to provide members with a full range of financial products and services.
The full guarantee is made possible through a comprehensive deposit protection regime that is focused on prevention.

Regulatory requirements are put into place by Credit Union Deposit Guarantee Corporation to ensure that credit unions are operating in accordance with Standards of Sound Business Practice and to ensure that there is always an adequate level of capital held at the credit union level to effectively manage business risks.

Through ongoing monitoring of credit union performance the in-system regulator is able to identify potential risks early and clearly communicate any preventive action necessary in a credit union to protect deposits.

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.

In October 2008 GMAC changed their policy on the demographic to which they will lend their money to by raising the minimum credit score for an auto loan borrower to 700 fico score.  This means that only those with the best credit will extended a loan leaving those with less than perfect credit scores to fend for themselves.

Since the influx of government money GMAC has announced they will lower their credit score minimum. GMAC spokesman Michael Stoller said now, those with less than perfect credit can qualify for a GMAC auto loan. GMAC will now lend money to car shoppers with FICO credit scores as low as 621, which is considered to be the low end that is usually called a sub-prime auto loan.

GM has also announced a new 0% financing auto loan incentive on some of its fleet of vehicles. The 0% offer applies to “qualified buyers,” of course, and it’s only available on Saabs and on the Chevrolet Trailblazer and GMC Envoy SUVs, some of their least popular cars.

Low interest rate loans are available on some popular models like the Cadillac CTS, Pontiac G6 and Chevrolet Malibu.  Once again only “qualified buyers” will be given these low interest rates.

Even with these relaxed credit guideline GMAC and GM have rolled out, those with lower credit scores should shop around to find the best deal possible.  There are many resources for those auto buyers with bad credit, it just requires more down payment and some additional leg work to find a good auto loan.

Article Source- CNN Money

Hyundai to the rescue, with the help of Walkaway USA, LLC.  Hyundia introduced their assurance program that offers something completely unique to car buyers.  They allow a car buyer to return the car for 12 full months if they experience job loss.

“In this uncertain economy, we are looking for ways to reassure shoppers that Hyundai still represents the best value in the auto industry,” said John Krafcik, acting president and CEO, Hyundai Motor America. “Our agreement with WALKAWAY allows us to offer a unique form of financial protection in all 50 states for the first time by an automaker.”

The Walkaway USA program was introduced in Canada back in 2000 and has allowed for consumers to walk away from $35 million in auto-related debt not to mention auto retailers with a competitive advantage.  They are proud to be the first and only car return company that protects car buyers from financial shortfalls arising from the depreciation of new and used vehicles.

“We are pleased to collaborate with Hyundai in offering this program through an automaker for the first time in the United States,” said Paul Budvitis, president of WALKAWAY USA, LLC.  “WALKAWAY is one of the most innovative products to hit the auto-finance marketplace, addressing consumers’ most pressing challenge to purchasing a new car in today’s economy.”

The Hyundia Assurance program is available to any consumer, regardless of age, health, employment history or financed amount of the vehicle. The program is complimentary for the first 12 months of the financing or lease date for vehicles financed through Hyundai Motor Finance Company and other third-party lenders and financing sources.

The Treasury also announced a one-billion-dollar loan to General Motors so GM can buy additional equity in GMAC, which the Treasury could take on demand.

GMAC’s niche for many years was financing the GM buyers market by being the only company in which GM could use for their financing incentives.  Removing this limitation was part of the agreement GM had with the government in order to receive aid but in the end GMAC may be coming out ahead.

GMAC, which provides GM dealer and customer financing along home loans, disclosed the terms of the agreement in a regulatory filing Friday. The lender said the government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy.

This money had an immediate impact to local dealers who are now able to offer zero percent financing and low-interest rate auto loans to customers.  Taking it one step further GMAC has lowered their minimum credit from 700 to 621 fico opening the door for even more car buyers.  This is a direct impact of the federal aid.

“We’re very excited to offer this reduced rate financing through GMAC to encourage our customers to get back into the game,” said Mark LaNeve, vice president at GM North America.

GM said loans through GMAC at zero percent would be offered for up to 60 months for many vehicles, with other loans ranging from 0.9 percent to 5.9 percent.

Source: Associated Press and Google News

Less known to the general public is that most car dealers make more money on their car financing side of business than profit from car sale or trade-in itself. In that sense, most of the franchise car dealerships are more in a banking business than in an automobile retail business.

Some car dealers make so much profit on car loans they generate they can even afford a small loss on the car sales, and pay you extra for your old clunker just to have you sign the loan package at very high interest rate. And you will be stucked with high interest auto loan for the next few years and easily get yourself into negative equity scenario, also known as “upside down” or “heavy in the trunk”. Spend as much time on negotiating on car loan as on the car itself.

Be prepared. All car credit decisions come down to two things: your credit profile, and the car. A lot of banks do not want to finance older cars. But many banks cater to borrowers with less than perfect FICO credit score. Once you know your credit profile, and know the car you want and can afford, you are ready for car loan shopping.

Local credit unions are a good place to start. They are local, and they have prior relationship with you. They can give you a quick quote on auto loan. Some credit unions like Federal Employees Credit Union know that their customers have better job security than private sectors, and therefore lower risks of default, and will give you a more competitive rate over other financing sources.

Some local banks do not finance cars purchased over the internet. A simple work-around is to purchase the car with short term loan, and then bring the car to them to have it re-financed. Auto loan re-financing should also be considered when the interest rate drops.

Dealer car financing. For new car dealers, they can finance it through the financial arm of car makers, like GMAC, NMAC and various motor acceptance corporations with low interest rate. Auto dealers work with many banks, and they are experienced in getting a good car loan package for customers with different credit profiles. It is not uncommon that they can submit the credit application to hundreds of lenders in their network through program like DealerTrack. After they take the profit, they may still present you with an attractive offer. Take that offer, and compare it with other sources of car financing.

Dealer in house car financing. These are the “tote-the-note” lot, or “buy-here-pay-here” lot. They have much higher interest rate but they are dealing with higher risk car buyers. There are some deals to be found here. Make sure you are aware of the policy on late car payment. Some car dealers repossess the car the next day payment is late, and that leaves you out with no car for work.

Car financing through credit card. Another source of funding for your car is to put the auto loan on the credit card. Make sure you pay more than the minimum every month, and know the interest rate they are charging. Some card companies change their rate in the middle of the loan. Be sure to read the fine point of the contract. Good thing about this financing option is that if you cannot make car payment, there will be no repo guy lurking behind your back.

Car financing through home equity loan, or HELOC (Home Equity Line of Credit). This is an excellent choice if you own a house. The rate is most likely be competitive because it is backed by your house instead of your car. Some banks offer both home equity loan and car loan. And the former most likely will have a better rate than a simple car loan.

Do some research on the internet when shopping for a car loan. Some websites actually submit your auto loan application to many car lenders through their affiliate network, and come back with the best rate possible. It may take some work, but it will pay off handsomely with the lower interest rate you will be paying.

Automotive sites such as www.pierreford.com contain useful tools and information to help you figure out exactly what type of car is right for your student. Even before considering make and model, the first step is often deciding whether a new, used or Certified Pre-Owned (CPO) car is best for your budget.

Certified Pre-Owned cars seem ideal for the student driver-offering the experience of buying a new car for a used car price and still getting a warranty on the car. Most (CPO) cars even get a better financing rate.
CPO cars are used, but are often selected for their nearly new condition. They go through rigorous inspection to become certified-to gain the “seal of approval”-by the original manufacturer, which often provides a warranty.

To some, CPO cars mean being able to buy a luxury brand for less, while others look at it as peace of mind. You can request the list used during inspection and know what repairs or maintenance work was done. Even better, many CPO programs offer roadside assistance.

After you’ve compiled all your research on the type of car you want, you can save time and energy by shopping for your car by make and model on a classified Web site such as PierreFord.com.  If you’re on a tight budget, as many college students are, you can easily search for and compare similar cars in your price range.

Just like at school, do your homework, compile the research and then make an educated decision. Applying that to buying a car will put you a step ahead of the class, and closer to finding your perfect car for your family.

This example is purely figurative to show the concept of how the guerrilla debt reduction plan works. After consolidating all his debt, Dave has 3 credit cards left with balances of $1,000, $2,000 and $3,000, a car payment ($250), and a house payment ($750). His income comes to $2,500 a month after taxes. There is the guerrilla way to pay off all these debts within 10 years:

He should make the minimum payment on each of his debts and then add the $250 (10% of $2,500 take home pay) to the highest interest credit card payment. For the first 4 months he’ll be paying $270 toward credit card A, $40 toward credit card B, $60 toward credit card C, $250 toward the car payment and $750 to the house payment at which point credit card A will be paid off. Once this has been accomplished, the payment that was being made toward credit card A will be applied to credit card B. Therefore for the next 7 months he will be paying $310 ($270 + $40) toward credit card B, $60 toward credit card C, $250 toward the car payment and $750 to the house payment at which point credit card B will be paid off.
Code:

Debt Amount % Interest Minimum Payment
Credit Card A $1,000 16% $20
Credit Card B $2,000 14% $40
Credit Card C $2,500 12% $60
Car Loan $10,000 6% $250
House Loan $100,000 8% $740

This process should be continued until all the debt is paid off, and even assuming there are no pay increases, and therefore a larger 10% of income going toward eliminating the debt, , all debt (including the house mortgage) will be paid off in well under 10 years. Although I have used 10% of take home pay (and a minimum amount you should be shooting for), any percentage will do. If the percentage is lowered, it will take longer to get rid of the debt while if the amount is increased, the debt will be paid off that much sooner. Once all the debt is paid off, you can continue to make the same payments, but instead of to others to pay off your debt, pay it to yourself in the form of retirement savings. With your plan in place and now underway, here are some more ideas that may be of use.

• Get a Free Quote • Find a Local Dealer

“Times have changed,” said Fukui. “Their response was too slow.” He neglected to mention, though, any other alternatives that could have been taken to remedy the woes of the automakers.

It was last month that President George W. Bush signed an extensive spending bill, which included a $25 billion loan, for the American automakers. Ford Motor Company, General Motors Corporation, and Chrysler LLC have long lobbied for government assistance in order to produce more fuel efficient vehicles to combat soaring gas prices and environmental concerns.

Fukui says Honda was able to avoid as many financial problems as the American automakers by not delving into the once-profitable pickup truck line.   Honda also says that its sales are still holding up despite the gloomy outlook for the industry. Fukei says that Honda is optimistic about the near future, given the upcoming releases of vehicles like the Insight hybrid and a remodeled Odyssey minivan.

Under the plan, roughly similar to the bailout package that failed in Congress last week, General Motors and Chrysler will have immediate access to $13.4 billion of the funds, drawn from the $700 billion Troubled Asset Relief Program (TARP). Another $4 billion would likely be available in February.

Citing extraordinary times, Bush said he put aside his initial inclination to let the companies fail, “as punishment for their own bad business decisions.” But, he noted, the country is in the midst of a financial crisis and a recession and “allowing the U.S. auto industry to collapse is not a responsible action.”

The plan allows GM and Chrysler breathing room to avoid bankruptcy while restructuring their organizations.

The long-awaited financial lifeline comes with strict conditions. The automakers must prove they are viable by March 31 or the money could be recalled for immediate repayment to the Treasury.

In his early Friday morning televised speech, the President said to work, the plan requires concessions from all parties — automakers, creditors, shareholders, the union, dealers, and suppliers.

Under the plan, the automakers must to reach an agreement with the United Auto Workers union to bring wages and benefits in line with those of employees of foreign-based automakers working in the U.S.

Executive compensation and other perks would be limited. The manufacturers would have to provide warrants for non-voting stocks and allow government oversight that could veto any transaction over $100 million. The rescue plan also requires the OEMs to adhere to fuel-efficiency and emission standards.

In a statement released short after the President’s announcement, Chrysler Chairman and CEO Bob Nardelli thanked the Administration and Treasury “for their confidence” in the company.

“A letter of intent was signed which outlines the specific requirements that must be achieved,” said Nardelli. “These requirements will require consideration from all constituents, requiring commitment first in principal, leading to implementation this coming year. Chrysler is committed to meeting these requirements.”

GM also released a statement of thanks, in addition noting, “This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depend on us.”

The statement further said the plan will allow GM to “accelerate the completion of our aggressive restructuring plan for long-term, sustainable success. It will lead to a leaner, stronger General Motors.” The company said it intends “to continue to be transparent as we execute our plan, and we will provide regular updates on our progress. We again thank the Administration for this important support of our industry at this challenging time, and we look forward to proving what American ingenuity can achieve.”

Are you one of those people who think that loans are available only for homeowners? If this is so then you need to come out of this myth. Because it was earlier when the loan providers used to give credence to the homeowners. Now, at present, there are special loan segment designed for the tenants which is known as the tenant loans. These tenant loans are specially meant for the non-homeowners and are highly beneficial for these people.

These tenant loans can be used for various purposes. Depending upon your needs and requirements you can decide the exact loan amount. When you decide this amount, keep in mind that you have to repay this money with interest in a certain period of time. So, always acknowledge the fact that sooner or later it is you who has to repay the loan. Apply for a loan amount that can be repaid within your monthly income.

With the advent of the tenant loans, the tenants and other non-homeowners are not a disadvantageous position anymore. They can as well apply for loans and enjoy the benefits of it. To get the best interest rates you need to put in little bit of extra efforts. You should make a good market survey and do that you do not have to go anywhere. All this can be done through the Internet only.

To get the best deal of tenant loans all you have to do is find out the best loan quote. To get updated information on different loan quotes from different lenders, you have to give a few details. Once you submit the online application, various lenders will contact you through e-mail or phone with their loan quotes. And you do not have any obligation for any lender, so you can decide for yourself which is the best quote for you.

So, if you too are a non-homeowner and are looking for some kind of loans to fulfill your wishes then you need not worry now. You can make use of the tenant loans to take care of your financial needs. Apply for these loans and live life stress-free!

So, what are your plans for this Christmas? How are you going to fund your expenses on this Christmas. If you are in any kind of trouble then Christmas loans are here to help you out. These loans are specially designed for people who need to fulfill their loved ones’ desires and demands but do not have the capability to do so.

Christmas loans are flexible ones. This means that you can spend the money from these loans as per your wishes and needs. You do not need to give the details of the expenses to anyone. But you should keep in mind that only you have to repay these Christmas loans. Therefore it is better to have an exact figure to apply for. Calculate your expenses and apply for the loan. This will ensure that you do not spend more than your needs.

The best part of Christmas loans is that they are available at affordable interest rates. You do not have to pay much to get the benefits of these loans. Moreover, you can get these loans even if you have a bad credit history. Earlier it was thought that people with a good credit history are given more credence where these Christmas loans are concerned. But today it is not the case. The loan providers do not consider your credit history.

Before you apply for any of the available Christmas loans, you should take into consideration more than one lender. Apply to various lenders and they will get back to you with their loan quotes. This way you can choose the best deal for yourself. Also, you should calculate the APR for your loan amount. This will give you a rough estimate about the monthly repayment that you are supposed to give to repay the loan within the scheduled time.

Now, if you are thinking how to apply for the Christmas loan then it is not a tough job at all. All you have to do is fill up an online application and the rest will be taken care by the loan providers. The financial experts can also help you talk out a plan to repay the Christmas loans. Apply for these loans and enjoy this Christmas with a blast!

Having noted that, this whole article is silly. You are always in an upside down lending situation with cars unless you pay half down. As soon as you drive off the lot it is worth less than you paid for it so by definition if you fully finance it you owe more than it`s worth. What was the point of this story again?

I drive vehicles until the die. Two have totaled. I hate buying cars although I go about it systematically. The last time I identified 15 vehicles that met the requirements I set out to look for. I test drove 12 of them over a three month period. I preferred to have no wheels rather than something I felt rushed into buying. Cars are expensive.

Having noted that, this whole article is silly. You are always in an upside down lending situation with cars unless you pay half down. As soon as you drive off the lot it is worth less than you paid for it so by definition if you fully finance it you owe more than it`s worth. What was the point of this story again?

Were you lied to? Did they twist your arm to purchase at their dealership? Where there other brands of cars to purchase at other dealerships? Did you have a choice?

Yes, and the choice for an honest, hassle-free dealership is Pierre Money Mart.

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Get instant approval for car loans and bad credit car loans for new or used car. Complete our short 30 second online car loan application form, and get approved for the best car loan available. Apply now for a free no obligation car loan quote! No one turned down for car financing at Consumer Car Loan.

In 1991, the IRS eliminated the income tax deduction for interest on most personal loans. The major exception is interest on a home equity loan, which is tax deductible on principal up to $100,000 no matter how you spend the money.

Some banks now offer “tax-smart” loans to give back the car-loan deduction to consumers. A tax-smart loan combines the ease of a regular auto loan with the tax deductibility of a home equity loan. With a tax-smart loan, you do not have to go through the closing procedures and expense required by a regular home equity loan. And you can usually borrow up to 100% of the equity in your home. Unlike a regular home equity loan, the primary collateral on a tax-smart loan is the automobile. To earn the tax benefit, a lien is placed on the home as well.

While tax-smart loans may be smart for the bank that offers them, they may not be such a great deal for the borrower. A tax-smart loan is safe for a bank to make: it has the security collateral of both your car and your house. The bank usually charges the same interest rate on a tax-smart loan as on a regular auto loan, which could be significantly more than the rate charged on a home equity loan.

Not only are you tying up the equity in your car and home for this loan, the savings you realize on the tax deduction may be less than the money you save with a lower-rate loan.

I called them about the credit card companies wanting to give me lower interest- and asked what I could do without going elsewhere and having more Credit Card inquiries on my report. They said that since I made all my payments on time and am in good standing with their Bank they would lower my rate and decrease my monthly minimum payments. It was that simple. I am now saving just for making a simple phone call. I tell my friends its the simple things you do to get your bills lowered.

Reducing monthly expenditures (such as eating out, entertainment, travel, rent, and cable television costs) was the most common way (other than making regular monthly payments) for debtors to try to alleviate their debt. Two in five (43 percent) said they had made those efforts in the past 18 months.

Yet only 28 percent had transferred credit-card balances to lower interest-rate cards and just 13 percent had contacted creditors to negotiate reduced interest rates or payment plans in the past 18 months.

According to the survey, 52 percent of all credit-card indebted Americans have had credit-card debt for between two and five or more years. Fully one-fifth have not been credit-card debt-free for five years or more; 11 percent claim they have never been without credit-card debt.

Debt is the biggest problem for adults between the ages of 25 and 45. Two out of three (66 percent) people age 18-24 say they have no credit-card debt at all. However, credit-card debt becomes far more prevalent after age 25; consumers between that age and age 34 the percent of people without credit cards crops to just 37 percent. Between the ages of 35 and 44, the precentage drops even lower, to 36 percent. After age 45, however, credit-card debt becomes less of a problem. For those age 45-54, 38 percent say they are without credit-cad debt. By age 55-64, 48 percent have no credit-card debt, and nearly two-thirds (61 percent) of those over 65 are free of credit-card debt.

The Banklady’s tips to reduce credit card debt:

“a FEW things you can do”

1. DO NOT waste money on Gambling and Lotteries- more and more Americans are throwing money out the window and giving it to these illegal foreign gambling services or state lotteries that have awful odds of winning.

2. Watch less movies, eat out less, find a bank that does not charge a monthly checking fee. Little things like that go a long way!

Options to reduce high-interest Credit Card Debt-

1. Consolidate your Debt. Use a online debt consolidation service.

2. IF you own a home: Pay off Credit Card Debt with a Debt Consolidation Loan.

Welcome to our auto loan financing resource section. You will find articles and general information to assist you in your next car purchase. We have also assembled some great tips on finding your best loan rates. You have found the right web site to offer all your automotive finance questions. If you are looking for information on car loans with bad credit you have come to the right place. Pierre Money Mart offers articles and resources that will help you make the right choices when it comes to new or used car financing. The financing arrangements we offer are the only auto finance options created to be both easy to complete while maximize your ability to qualify for the Ontario car loan you want. Just click on one of our Auto Financing Resources to better assist you. You will find everything you need. Do not have any hesitation, simply pick up the phone now and call us as we are here for you. Our trusted staff has been put in place to answer all your questions.

Online Auto Loans Guide
If you are at the beginning of the online sales hunt, you may get the feeling that you are in well over your head. Not to worry as the Online Auto Loans Guide will help you out…<more>

Guaranteed Auto Approval
There are many web sites and auto dealerships who claim to offer you best in bad credit auto financing. This notice is for you. Buyer’s beware: Simply put, type in any keyword and you are given a list of web sites attached to a car dealership that claim to be your bad credit answer?. Read below as not all car dealerships are the same or do they have the correct staff or financing options….<more>

Car Loans With Bad Credit
Bad credit does affect your ability to secure a car loan. It is your credit score that tells the finance companies what type of risk you are. Depending on your particular bad credit circumstance, you may be entitled or limited in how low of interest rate you may receive as well as the amount of loan you qualify for….<more>

Car Loans After Bankruptcy
A car loan after a bankruptcy is one of the quicker ways to help build back your credit history. In fact, once your bankruptcy is dishcarged or closed, you may apply for a car loan the very next day. To be approved with the best car loan after bankruptcy rates’ follow these tips….<more>

Frequently Asked Questions
Pierre Money Mart Canada understands that the auto financing process is sometimes difficult and confusing to understand. Here you will locate the frequently asked questions we receive. If these do not answer your question, simply contact us for mor information….<more>

We provide you a comprehensive and complete solution to you for buying a car with bad credit. We practically hand hold you in getting a bad credit used car loan. By helping you get a pre approved auto loan, we empower you with the right tools to get a good bargain from the car dealers. Our site is fast and secure, so your information very safe with us.

Does a bad credit auto loan improve my credit rating?

Of course, it does. Your credit rating may have been ruptured due to delayed or faltered repayment of your loan. With bad credit auto loan or bad credit used car loan, if you start making timely repayment, your credit score will eventually get repaired. For those who do not have a credit history at all, this is also a good way to build one.

Can I get low interest rate, even with bad credit?

Yes, we have low interest car loans, specifically designed for people with bad credit history. We offer both secured and unsecured auto loans at low interest rates. According to your own convenience and payment capabilities, you can choose the one that fits you best.

What does the application process involve?

The application for your bad credit used car loan is an online form. It only takes a few minutes to fill the form. If everything is in order, the approval of loan takes only a while and the loan gets transferred to your account in no time

A car loan after a bankruptcy is one of the quicker ways to help build back your credit history. In fact, once your bankruptcy is discharged or closed, you may apply for a car loan the very next day. To be approved with the best car loan after bankruptcy rates’ follow these tips.

Review Your Credit Report
Before you start to apply for a car loan, check out your credit report to make sure all your financial accounts are in order with your bankruptcy. It is not uncommon after a bankruptcy to find accounts that should be closed. Ensure these are closed as they will hurt your credit rating.

While reviewing your credit report, take the consideration of adding a page to the report explaining the exact situation that resulted in your bankruptcy. If there were any extenuating conditions, finance lenders may approve you for an auto loan at a better rate than under normal circumstances.

Plan Out Your Car Purchase
Before purchasing a vehicle, decide what you can afford in terms of monthly loan payment. This will help you decide which financing package best fits you and / your spouse. You are free to compute auto loan payments using our car loan calculator on this web site. Both the car loan amount and length of term will decide your monthly payments, so there is flexibility in determining which vehicle you can afford to purchase.

Use An Online Car Loan Service
Car loan lenders make their money by finding you a loan. Car loan lenders work with several financing partners to back loans with all types of credit risk, including bankruptcies.

Online car loan lenders deal with thousands of loans, and can usually find you a better deal than your local car dealerships. Online car loan lenders will send you a check when you are approved, basically making you a pre-approved car loan buyer.

Explain Your Situation
Car loan applications will ask if you have ever declared bankruptcy and why. This is your chance to explain what led up to the situation and what steps you have taken to resolve your credit situation. Be sure to include improvements in your financial history too.

Consider Refinancing
Once you are approved for a car loan, keep your eye on future refinancing. By making regular payments on all your bills, in a year’s time you could qualify for significantly lower interest rates. In three years, you can build your credit score to near excellent and qualify for even lower rates.

Finding car loan after bankruptcy may be tough. Our application is fast, free, private, secure, and totally confidential. You get near instant car loan approval and there are no fees and no obligations. Let us find the lowest interest financing for your desired car. Apply for your car loan : And be driving off in the new or used car that you want today.

Questions

PierreMoneyMart.com understands that the auto financing process is sometimes difficult and confusing to understand.

Below are a few of the frequently asked questions that we receive. Hopefully these will answer your questions. If they do not, do not hesitate to contact us by phone, or send us an e-mail and we will be happy to assist you.
Q: Can I get approved for a car loan even if I have bad credit?
A: YES! This is what PierreMoneyMart specializes in.

Q: How much time does the application process take?
A: Our easy auto credit application only takes a minute to complete. After you submit the application, you should be contacted within the next business day and often the same day by one of our participating financial lenders, and from there expectantly receive an auto loan approval inside of 48 hours.

Q: When approved, is there a down payment required?
A: Our financing options do not require a down payment. The only time additional money may be required is if you did not meet the qualifications for the amount you needed to buy your exact choice of car, and you made the decision to put in a down payment.

Q: How much does it cost to fill out an application?
A: There is absolutely NO COST to apply for a car loan with PierreMoneyMart.com!

Q: What type of auto financing may I qualify for?
A: You can apply for any type of new or used car loan.

Q: What type of vehicles can I receive a car loan for?
A: You can use your car loan for any types of new or used vehicle.

Q: What about refinancing an existing car loan?
A: CLICK HERE to refinance an existing car loan.

Q: Why do you work through Car Dealerships?
A: There are many reasons actually.
First, this is the process 80% of all cars are purchased as well as where financial lenders, banks and special credit unions feel the most secure.
Second, by purchasing through a car dealership, your chance for be approved for a large loan increases. This is because of the different calculations and formulas are used. For instance, a credit card is an unsecured debt where as a loan for a car is secured because the car is seen as an asset.
Lastly, the end result of this business is that the face-to-face meetings that offer the best protection of your financial details. We do not need to let you know on the many identity scams that are out on the Internet. Once your secure credit application has been screen, filtered and sent to a credit specialist, all details are then handled in person. Privacy protection is something we take seriously and has assisted in the growth of our parent company’s 20 plus years in business.

Q: Is there anything that I should know before I go to the dealer?
A: It is very important to understand dealer terms about new, used or leased autos. It is also very important to have some idea as to what type of auto you want to buy or lease. Potentially, this can help you save a great deal of money!

Q: Can I use my current vehicle as a trade in?
A: Yes you may use your current car or truck as a down payment on your new auto loan.

Q: What is the privacy of my personal information?
A: All personal information is strictly confidential, and not shared with any third party.

Q: What are your minimum qualifications?
A: Our minimum qualifications are a gross (before taxes) monthly income of $1500 or over per month. Your best bet if you are below this would be to fill out our easy credit application and have one of our finance specialists review your options.

We provide you a comprehensive and complete solution to you for buying a car with bad credit. We practically hand hold you in getting a bad credit used car loan. By helping you get a pre approved auto loan, we empower you with the right tools to get a good bargain from the car dealers. Our site is fast and secure, so your information very safe with us.

Does a bad credit auto loan improve my credit rating?

Of course, it does. Your credit rating may have been ruptured due to delayed or faltered repayment of your loan. With bad credit auto loan or bad credit used car loan, if you start making timely repayment, your credit score will eventually get repaired. For those who do not have a credit history at all, this is also a good way to build one.

Can I get low interest rate, even with bad credit?

Yes, we have low interest car loans, specifically designed for people with bad credit history. We offer both secured and unsecured auto loans at low interest rates. According to your own convenience and payment capabilities, you can choose the one that fits you best.

What does the application process involve?

The application for your bad credit used car loan is an online form. It only takes a few minutes to fill the form. If everything is in order, the approval of loan takes only a while and the loan gets transferred to your account in no time

Interest rate
Annual interest rate for your loan or your lease.

Investment rate of return
Rate of return on investments. This is the return that you would make if you were to invest your down payment or security deposit instead of using it in your auto purchase or lease. The actual rate of return is largely dependant on the type of investments you select. For example, from January 1970 to February 2003 the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 2% or less. It is important to remember that future rates of return can’t be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Fees
Fee charged for title transfer. Also include any other fees that may be due at delivery.

Finance Charges
A set percentage charged to the borrower by a lender. To calculate this subtract the total of payments from the amount borrowed.

Fixed Interest Rate
A fee charged for the use of borrowed money, based upon a set percentage rate.

Life Insurance
Credit life insurance pays off the balance of your loan upon your death.

Loan amount
The total dollar amount for this loan.

Loan term
The number of years over which you will repay this loan. The most common terms are 15 years and 30 years. If this loan has a “balloon” payment, the loan term will be shorter than the number of years to amortize the loan. For example, a loan with a 5-year term amortized over 30 years will have the same monthly payment as a 30-year loan with the same interest rate. The difference is the 30-year loan will have equal payments for 30 years. The 5-year loan will have equal payments for 5 years and then a very large, or balloon, payment for the remaining balance.

Loan length (months)
Total length, or term, of your original auto loan in months.

Lost interest on buy option
This includes any interest you would have earned at your investment rate of return on the buy option’s down payment and other fees. If the monthly payment for leasing is less than the monthly payment for buying, this also includes any lost interest due to the higher monthly payments. If leasing is more expensive than buying, your interest costs for buying are reduced by the amount of interest you would earn on the difference.

Lost interest on lease option
This includes any interest you would have earned at your investment rate of return on the lease option’s down payment, security deposit and other fees. Please see the definition for “Lost interest on buy option” for an explanation on how we account for any interest you might earn by having a lower monthly lease payment.

Loan to Value (LTV)
The amount financed relative to the published book value of the vehicle. Lower LTV’s have a better chance of approval. Lenders usually use Trade of Wholesale Value Book Value when calculating LTV.

Debt Ratio
How much you earn compared with how much you owe. The lower your debt ratio, the more disposable income you have.

Deficiency Balance
A deficiency is any amount you still owe on your contract after your creditor or lessor sells the vehicle and applies the amount received to your unpaid obligation. This also applies to lease turn-ins with over mileage charges.

Delinquency
Failure to make one or more installment payments by the due date(s).

Disclosure Statement
A statement of the total amount and cost of a loan, including the principal loan amount, interest rate and any additional finance charges or loan fees. The disclosure statement is contained within a bold box on the retail installment (finance) contract.

Disability Insurance
This insurance pays your monthly payment if you are unable to work due3 to illness or injury. There is normally a waiting period:

* 14 Day Retro -If you are disabled for 14 days before a claim is made. With a doctor’s certificate the first payment is retroactive to the day the disability took place. Payments cease when you return to work.
* 30 Day Retro – If you are disabled for 30 days before a claim is made. With a doctor’s certificate the first payment is retroactive to the day the disability took place. Payments cease when you return to work.
* 30 Day Elimination – If you are disabled for 30 days before a claim is made. With a doctor’s certificate the payments begin after the waiting period. Payments cease when you return to work.

Down payment
Amount paid as a down payment, which for leases is often called a capital reduction.

Open Credit
Loans that must be paid in full each month.

Other costs
Any other costs that should be included in the APR calculation.

Other fees
Any fee, other than a capital reduction or down payment, required to be paid at the close of the lease or loan. This may include license, title transfer fees, fees included in the APR calculation. etc.

Original loan amount
The original amount financed with your auto loan, not to be confused with the remaining balance or principal balance.

Origination fee
The dollar amount charged as a loan origination fee, which is included in the Annual Percentage Rate (APR) calculation. For many loans a 1% origination fee is common. For example: a 1% fee on a $120,000 loan would cost $1,200.

Balloon payment
This is the total final payment for all loans that are amortized over a period of time longer than the loan term. The balloon payment is total interest and principal balance due at the end of the loan term. (If the loan term is the same as the amortization, this amount is always zero.)

Book Value
The published valuation of a vehicle. There are three nationally recognized vehicle valuation services; NADA®, Kelly Blue Book®, and Black Book.

Buyers Order
This form is the legal contract between the Buyer and the Seller.

Buyers Guide
The Federal Trade Commission’s (FTC) Used Car Rule requires dealers to post a Buyers Guide in every used car they offer for sale. The Buyers Guide must tell you:

* Whether the vehicle is being sold “as is” or with a warranty.
* What percentage of the repair costs a dealer will pay under the warranty.
* That spoken promises are difficult to enforce.
* To get all promises in writing.
* To keep the Buyers Guide for reference after the sale.
* The major mechanical and electrical systems on the car, including some of the major problems you should look out for.
* To ask to have the car inspected by an independent mechanic before you buy.

Rate of depreciation
The rate of depreciation gauges how fast your new automobile will lose its market value. A high depreciation rate is about 20% per year, medium is 15% per year and low is 10% per year.

Residential Lease Agreement
Some Lenders require proof of your monthly rental or lease obligation. Often the landlords phone number is required for verbal verification

Residual percent
For leases, this is remaining value after the lease term expires. The higher this amount, the lower your lease payment will be.

Revolving Credit
Loans that do not have a fixed monthly payment nor a fixed period of time. Examples include credit cards and home equity lines of credit.

Taxable fees
Any additional fee that is subject to sales tax. This usually includes title transfer fees or any other fees that may be due at delivery and are taxable.

Telephone Bill
Some lenders require proof of home phone service. Many lenders are now accepting cell phone service as well.

More Flexible Lending Guidelines than Direct Lenders. Our dealership finance managers are specially trained to present your bad credit car loan request to the lender in the most favorable terms to assure each request has the best possibility of approval.

Several Loan Sources. A large number of lenders and auto finance companies means that our auto dealers can offer car buyers a range of lending options. Many of the top national finance companies only offer financing through their local auto dealership associates.

Competitive Special Finance Interest Rates. At times, our retailers offer low interest rate incentives to buyers, from the auto manufacturer, that local lenders cannot. Even with a bankruptcy. For example, many captive finance companies are now, or have in recent times, offered interest rates as low as 0%, 1.0%, 2.9%, or 3.9%. It’s hard to match those rates no matter how hard you shop.

Easy & Convenient Buyers can finance and purchase a new or used car, truck, SUV, or mini van at the same time.

Last year, Chilcot, 21, bought the $15,000 car – a sweet ride with tinted windows and custom chrome rims, and a loan with $370 monthly payments that he could not afford on his $12 hourly wage at Home Depot. By the fall, facing mounting credit-card debt, student loans, and rent, he stopped paying the car bills.

“I ran around smiling for 20 minutes when they took the car away,” Chilcot said. “It was a relief.”

It is also an increasingly common story as more Americans, under growing economic pressure, are deciding to surrender their rides rather than the roofs over their heads: The rate of auto-loan defaults recently reached a 10-year high of 3.4 percent. And one local auction company saw repossessions nearly triple last month compared with a year ago.

As with the subprime-loan crisis that has caused waves of home foreclosures, trouble has been brewing with car loans for years. As the economy boomed, lenders made it easy for shoppers to buy cars they couldn’t afford by stretching their loan payments to five or six years, which more than doubled the total of Americans’ auto-loan balances over the past decade to $772 billion from $282 billion in 1998. As with home buyers, lenders relaxed standards for car buyers such as Chilcot, who had blemished credit and put no money down.

With oil prices skyrocketing and the economy in a downturn, consumers are looking to downsize to cheaper, more fuel-efficient models, and reduce their payments. And many – even those with good credit and lower interest rates – are finding they can’t afford to sell their vehicles because they have more left to pay off than their cars are worth. Lenders, meanwhile, are writing off billions of dollars in defaulted loans, and some analysts worry this could escalate to a foreclosure crisis on wheels.

“The suddenness with which we saw repossessions hit the market at the beginning of the year has been unusual and appears to reflect not only the general economic slowdown, but some spillover from the mortgage crisis,” said Tom Kontos, chief economist at Adesa Inc., which runs 58 car auctions across North America. “With folks getting resets on adjustable-rate mortgages, it forces many people to decide whether to default on their home loan or default on their car loan. When they have that kind of choice, predictably, they gravitate toward defaulting on car loan.”

Nationwide, repossessions are up about 15 percent so far this year, Kontos said. At North Shore Auto Auction in Ipswich, repossessions almost tripled in February to 125 vehicles, with gas-guzzling sport utility vehicles, pickup trucks, and vans being turned over more quickly than cars at a rate of two to one. As homeowners get squeezed by rising mortgage payments, contractors are also feeling the pinch as people cut back on home-improvement projects, leading to a glut of repossessed pickups, according to Frank Iovanella, president of North Shore Auto Auction.

For two years, Carole Beausoleil, 58, of Southbridge has been trying to get rid of a black pickup, a 2003 Chevy Silverado the family bought in 2004. Beausoleil says the family was pressured by the dealer into costly add-ons the members quickly regretted, such as LoJack and an extended warranty. These services added thousands to the $21,900 sticker price and pushed up the monthly car bill to $465.

Beausoleil fell behind on payments in 2006 and debated allowing the lender to repossess the car. She reconsidered because she didn’t want to ruin her credit and her husband needed the vehicle for work. Instead, they tried to downsize to a less expensive, more fuel-efficient model. But they have been unable to because they owe $13,000, and lenders told Beausoleil the truck’s value has shrunk to $10,000.

“We got swindled and overpriced. It was a mistake, and now it’s too late,” Beausoleil said.

Beausoleil, who is trying to pay off other debts, including overdue credit card, gas, and electric bills, says she plans to use the anticipated federal tax rebate this spring to help make up the $3,000 difference so the family can finally get rid of the truck.

Lenders, meanwhile, are cracking down. GMAC Financial Services, the country’s largest auto-finance operator, recently tightened its underwriting standards to authorize fewer subprime loans and also increased its collection force to work with customers who are late on auto payments. During the last two quarters of 2007, the riskiest subprime borrowers had interest rates of about 15 percent for their auto loans, while borrowers with top credit ratings carried car loans with 5.7 percent interest rates, according to J.D. Power and Associates’ Power Information Network, a market research firm.

Jack Tracey, executive director of the National Automobile Finance Association, the trade group that represents subprime lenders, said, “The nonprime auto-financing industry is very important for the economy because it provides many economically disadvantaged consumers with the ability to own a car and have the ability to hold a job where they need to commute to work.”

But the most recent data available from a member survey showed that delinquencies on subprime loans jumped to 11.6 percent, up from 6.8 percent.

“Just as in the subprime mortgage industry, car dealers have been giving consumers with less-than-prime credit ratings car loans with rates and payments they can’t afford,” said Yvonne Rosmarin, a consumer-protection lawyer in Arlington.

Some industry analysts do not expect the problems within the auto industry to reach the crisis level of the mortgage industry. Lenders can more quickly recover, in many cases, because vehicle repossessions can occur within 90 days after a loan is past due, while home foreclosures can take up to a year. Still, some lenders, like Eastern Bank, which have seen an increase in repossessions, are taking a hit at auction, getting at least 10 percent less than last year for larger vehicles.

That means the problems for consumers may not end when their repossessed cars are towed away. They still may owe money if the lender sells the car for less than the balance owed. Moreover, the repossession typically stays on consumers’ credit reports for up to seven years.

Chilcot, who recently had his car repossessed, had initially intended to purchase an $8,000 Nissan Altima, but he couldn’t get a loan to cover the vehicle because it had too many miles. He knew he had bad credit, so when a loan offer was approved instead for the $15,000 Lincoln, Chilcot seized on what he thought was a good deal – even though it came with a 18-percent interest rate.

Since his car was taken away, Chilcot has started walking to work at his new job – as a car salesman at a dealership in Plymouth.

When asked whether he tries to caution people against buying a car they can’t afford based on his recent experience, Chilcot chuckled: “Not really. You become pretty shameless pretty quick when the paycheck comes.”

Generally, credit card companies, lending institutions, department stores,
and utility companies do not extend credit to individuals who have files listed under
“risk management” with credit reporting agencies.

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Bad credit auto loans typically only apply to used cars and require the loan to be repaid within 48 months. These terms make for a less risky loan for the lender. Because used cars are typically cheaper than new cars, a shorter loan term will give the borrower a better chance at fully repaying the loan, and reestablishing their credit history.

If you are thinking of applying for a bad credit auto loan, there are a few things you should take into consideration:

1. You should have an idea of what prices used cars sell for in your area, and how much you should borrow. There are some unscrupulous car dealers out there that will take advantage of car buyers financing through bad credit auto loans. They will charge unknowing consumers higher prices based on their credit situation, and corresponding lack of options.

2. You should definitely shop around for the best terms and conditions available. Not all lenders are created equal. By shopping around, you can ensure you get the best deal possible.

3. You need to know the specific requirements stipulated for the bad credit auto loan you are applying for. There are some banks and financial institutions that will only write auto loans for vehicles that are no more than 4 or 5 years old. Make sure you know all these stipulations before you go shopping.

Even though a bad credit auto loan may not be the ideal way to finance a used car, for many there are few other options. Do yourself a favor and shop around for the best deal possible. And remember that this loan may be the start to obtaining a better credit history.

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* Collection efforts against you have ended.
* Legal action is being taken (such as when a creditor decides to sue you).

No News Isn’t Always Good News

Don’t make the mistake of thinking that just because you don’t hear from a creditor your problems are over. While the FDCPA goes a long way toward protecting you from harassment, it will not make your bills disappear. Depending on the terms of your agreement with a creditor, collection efforts will probably continue and that could result in legal judgements against you. In other words, ignoring the problem will only make it worse.

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* A debt collector cannot contact you at unusual or inconvenient times or places-before 8 a.m. or after 9 p.m.

* They may not call you repeatedly or place telephone calls to you or any other person without identifying themselves as a debt collector.

* A debt collector cannot contact third parties, except your attorney or a credit bureau, except to locate you. For example, if an agent contacts your employer they are only allowed to confirm or correct information on your whereabouts. They are forbidden to tell your employer about your financial difficulties.
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If you are unable or unwilling to pay a debt you owe, a creditor can sue you to collect the money. If the creditor wins and you still do not pay, the creditor can ask the court to issue a Writ of Garnishment. If the writ is granted, papers are then sent to your employer with instructions to withhold a certain amount of money from your paychecks until the judgement is satisfied. That money goes directly to your creditor and you receive whatever is left.

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Below are some frequently asked credit questions and answers that will help you make smarter decisions about your credit.

How will Credit Counseling Affect my Credit Rating? The existing condition of your credit report will influence how credit counseling will affect your credit; however, there is no hard and fast rule regarding credit counseling and your credit. Most creditors will report your usage of a credit counselor while other may not; and there’s no predicting how future creditors will interpret it. Many lenders perceive credit counseling as a consumer “work-out” program. Credit counseling will NOT impact your FICO score.

Is Credit Repair Illegal? Credit repair is LEGAL. You may have heard some mention that credit repair is actually illegal; but the fact of the matter is there is nothing illegal about credit repair and disputing inaccurate information about your credit file. The Fair Credit Reporting Act (FCRA) actually encourages people to dispute inaccurate information.

What can be taken off my credit report?Any inaccurate, unverifiable accounts such as inquiries, old addresses, additional names on the report (you must have at least one name on your report), unpaid collections, charge-offs, repossessions, bankruptcies, medical bills, credit card debt, and divorce debts.

What can’t be taken off my credit report? There are certain things that just can’t be removed from you’re your credit report. Those things are federal and state tax liens, child support, new student loans, and any bankruptcies reported by the bankruptcy court.

What is a Good Score?The higher your credit score, the better; however, there is no real industry standard. Credit scores range from 350-850. Each creditor/lender judges your credit score differently and takes other factors into consideration when determining your eligibility and/or risk. Typically, anything above 690 is considered a great score. Below a 620 is frequently referred to as “sub-prime.”

How often do Credit Scores Change? Your credit score is fluid; it changes as your credit information changes. Anytime new information is added to your credit report, your credit score can change. The credit reporting agencies (Transunion, Equifax, Experian) usually update their credit data every 90 days.

I have a Number of Credit Cards. Will that Affect my Credit Score? Your overall credit history will determine how your credit is affected by having numerous credit cards. However, having an overabundance of credit cards with high balances or credit availability can negatively impact risk scores if your credit history is questionable.

How do you begin to establish credit? Consumers desirous of establishing a good credit record should start off by applying for a credit card. The companies that monitor credit history compile information based on your payments and responsible consumers build up a good credit report by promptly paying off what they owe. A second consideration, especially if the consumer did not qualify for a conventional credit card, is to apply for secured credit. This method lessens the lender’s risk by having access to some kind of guaranty from the borrower in case of default. An alternative way is to have a person with a proven history of good credit co-sign a loan. These co-signers are a form of guarantee diminishing the lender’s risk of non-payment.

Is There a Rule of Thumb Regarding the Number of Credit Cards to Have?In general, it’s better to have a few credit cards with high credit limits than a large number of cards with limited credit limits. Having credit cards with high credit limits demonstrates that you are responsible enough to carry a high credit limit on multiple cards.

Is it a Good Idea to Transfer my High Credit Card Balance to a New Card with a Rock-bottom Rate?If you want to transfer your credit card debt to a different card, you need to make sure that there are no catches with the introductory rate of the new card. For example, sometimes the low introductory interest rate on a card is only for a very limited time and then it skyrockets to an exuberant amount. You also need to ask if there are annual fees, late charges, or any other stipulations that might make transferring your credit card debt to a new card counter-productive.

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Below are some frequently asked credit questions and answers that will help you make smarter decisions about your credit.

What are the different types of credit? Generally, credit is organized into three major buckets: Revolving credit: where a consumer borrows money from a lender and pays it back at the end or makes partial monthly payments (e.g. Visa and Mastercard). Charge credit: where the lender provides the consumer with a loan under the presumption that it is going to be paid in full at the end of the month (American Express). Installment credit: occurs when the consumer agrees to finance a debt with monthly payments over a predetermined period of time (e.g. mortgage).

How do you begin to establish credit? Consumers desirous of establishing a good credit record should start off by applying for a credit card. The companies that monitor credit history compile information based on your payments and responsible consumers build up a good credit report by promptly paying off what they owe. A second consideration, especially if the consumer did not qualify for a conventional credit card, is to apply for secured credit. This method lessens the lender’s risk by having access to some kind of guaranty from the borrower in case of default. An alternative way is to have a person with a proven history of good credit co-sign a loan. These co-signers are a form of guarantee diminishing the lender’s risk of non-payment.

What happens if your request for credit is denied? There are a variety of reasons dictating why credit may not have been extended. Reasons ranging from insufficient income, short-time at a job or address, and/or poor credit history. You should evaluate your situation and know that you are entitled to receive a credit report delineating your denial. You should also know that the credit bureau is obligated to investigate and correct whatever legitimate errors you find therein.

What type of bad credit loans can I get?A short term loan (a.k.a. payday/cash advance loans) is one common type of bad credit loan that is available to you. This type of loan requires no credit check or co-signer. However, you do need collateral to qualify for a short term loan and a checking account for the funds to be transferred to.

Why do unsecured credit cards for bad credit have higher interest rates? When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.

Why should I pay a company to repair my bad credit if everything is going to reappear after a few months? If you use a reliable credit repair service, everything WON’T reappear after a few months – if you have been the victim of identity theft, all of the wrong information should be removed. Most reputable bad credit repair services correct your entire credit file and stick with it until all issues are resolved and cleared. Your bad credit might have a long and deep trail, so it could take time to completely clear your credit file of all issues.

When do I need debt counseling? There is no established debt amount or situation that dictates the need for credit counseling. Whenever you feel overwhelmed by debt, regardless of the amount, and need assistant with your credit debt, credit counseling can help you steer clear of huge financial troubles.

How do I know if a Credit Counseling Service is Legit? When selecting a credit counseling service, make sure the credit counselor you’ll be working with is certified. Many credit counselors are required to have and maintain a Consumer Credit Counselor certification. The certification process involves specialized and comprehensive credit counseling training as well as the passage of the certification exam. Also, check with the Better Business Bureau.
Need to tune-up your credit? Check out our do-it yourself Credit Repair Manual here!

Few of us have the means to write a check for the full amount of a new – or even used – vehicle.

Unfortunately, car buyers, treating financing as an afterthought in the car buying transaction, can easily waste thousands of dollars.

Here are some tips on what to do and what to avoid.

Know your incentives

Web sites like Edmunds.com (which provides automotive data for CNN’s Web sites) list available incentives in your area. Often there are low-interest, or even zero-percent, financing deals you might qualify for.

Don’t assume you need perfect credit. Ford Motor Co., for example, has recently opened up its zero-percent financing incentive to buyers with a few potholes in their credit history.

Don’t go in empty-handed

Hybrid vehicles top fuel economy list

It’s true that a car company’s “captive finance arm,” – for example, Ford Motor Credit or Toyota Motor Credit – will probably be able to offer you a better financing deal than an outside bank or credit union. After all, it’s their job to help you buy one of their parent company’s products.

But that’s not automatic. It can’t hurt to make them work a little for your business by researching the cheapest financing you can get before you go to the dealership. A credit union or an organization like AAA or USAA can sometimes offer you access to rates you couldn’t get at a regular bank.

Companies like Capital One Auto Finance will even allow you to bring a check to the dealership without having to agree to take the loan. The loan doesn’t start until you write the check, which can be up to a pre-approved amount. Until then, all you’ve done is arranged competitive financing. You can still take it or leave it.

Just don’t forget that interest rates are negotiable. If you arrange financing at a car dealership, part of that interest goes to the dealership itself. The dealership’s business manager also has an incentive to work with you to earn your business.

Don’t get stretched

Before you go car shopping, you have to know how much car you can afford. That means you need to know how much of a down payment you can make, how much you’re likely to get for your current car and how much your monthly payments will be.

It’s tempting to just let the dealership work it all out for you.

In that scenario, you tell the salesman what kind of monthly payment you’re looking for and show them your trade-in. They’ll tell you whether you should stick with the entry-level model or if you can move up a step or two. And you’ll probably be pleasantly surprised that you can drive a much nicer car than you thought for monthly payments that fit your budget. Yes, the loan stretches out for six years but… look at this car! Feel those seats. Listen to that big, strong V8. Come on, if you can afford it each month, who cares how long the loan is?

Well, obviously, another year or two of payments means thousands of extra dollars out of your pocket. It’s just being removed more gently.

Then there’s another problem you might find out about years later. The longer your car loan is, the longer you’ll be “upside down” in your car payments. In other words, a longer loan extends the period during which you’ll owe more on the car than the car is worth.

So figure out your payment situation and know what you can afford before you start shopping.

Do your own math

Once the deal’s all figured out, there’s one simple step a lot of people forget to take. Get out your pocket calculator and figure out how much that car is really costing you.

Just multiply your monthly payment by the number of payments you’ll be making. Then add on your down payment and the value of your trade-in. If you were fortunate enough to qualify for zero-percent financing, there shouldn’t be any surprises.

If you’re paying interest, especially if you’ve taken out a long-term loan, you might be shocked by how much that car is costing you.

For example, a six year loan at 7.9 percent on a $35,000 car would cost you almost $10,000 more than the same vehicle if you were paying no interest, according to Edmunds.com.

Then you can decide if that car is really worth almost $45,000.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Veterans Administration (VA)
A government agency guaranteeing mortgage loans with no down payment to qualified veterans.

yield
The amount generated in interest on an account.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Repay Debts & Manage Money

If your credit problems stem from too much debt, it’s time to create a debt repayment plan. The only way you can avoid a repeat performance of past financial problems is to change the way you handle your money. Start by analyzing your spending habits, creating financial goals, and setting spending priorities.

Buying on credit makes it easy for you to lose track of how much you’re spending each month. To reduce your spending, try paying for everything with cash. When you pay with cash or even a check, you are forced to limit your spending to the amount of funds you have in your checking account.

Apply for Secured Credit

If you have declared bankruptcy or have had your credit cards revoked, you’ll need to find a way to prove that you can handle credit responsibly. One way to do this is to apply for a secured credit card. A secured credit card requires a specified dollar amount to be deposited with the card issuer. These funds are then put on hold and a credit card is issued with a line of credit equal to the amount you have on deposit. If you make payments as agreed for approximately one year, the creditor may then release the funds held as security and issue an unsecured card. Be sure to look for hidden fees and charges. Take time to shop around for the best interest rates and lowest annual fees.

Apply for Unsecured Credit

A local department store may be more likely to issue you a credit card than a national creditor. If you are granted credit, show them that you are now financially responsible by paying all your bills on time!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

* Rule 1: Pay your bills on time
It sounds simple, but we all know how life’s curve balls can make things difficult. That’s why it’s important to learn how to manage your money wisely.

* Rule 2: Avoid having too much debt
You can accomplish this by reducing the number of credit cards you have and keeping your balances low. A good rule of thumb is to have only one or two major credit cards and use them for emergencies only. If you must charge something, make sure you can pay it off at the end of each month.

Online Debt Assessment.

* Rule 3: Limit the number of inquiries into your credit and don’t open several new accounts at once
Too many inquiries in a short period of time may be seen as an indication that you are actively seeking credit, perhaps because of financial problems or desperation. In the same way, opening several new accounts at the same time may also be interpreted as a sign of financial trouble. To avoid this perception, be selective when you shop around for credit. Limit the number of inquiries by creditors and keep your credit accounts to a minimum.

* Rule 4: Check up on your credit report at least once a year
Even if you have been careful to follow all the rules and pay your bills on time, there may be incorrect or outdated information on your credit report that is hurting your credit profile. To ensure the accuracy of your credit report, contact one or more of the reporting agencies listed below to obtain a copy. The cost is usually less than $20.

o Equifax Credit Information Service
P.O. Box 105783, Atlanta, GA 30348
http://www.equifax.com

o Experian
ATTN: NCAC
P.O. Box 2104, Allen, TX 75013-2104
1-800-682-7654
http://www.experian.com

o Trans Union
P.O. Box 390, Springfield, PA 19064-0390
1-800-888-4213
http://www.transunion.com
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

I.D. Section

Here you’ll find identifying information like your:

* name
* current address
* social security number
* date of birth
* spouse’s name (if applicable)

Easy, right? But don’t just skim over this section. Read all the entries to make sure everything is correct. One bad piece of information and the credit history listed on your report could be wrong.

Credit History Section

This is the meat of the report. It contains a list of your open and paid credit accounts and indicates any late payments reported by your creditors. Although it may seem a little tedious, it’s essential that you read through this section very thoroughly. If you find any information that is incorrect or accounts that don’t belong to you, you’ll need to submit a dispute letter to the credit-reporting agency.

The basic format for the credit history section (see sample) is as follows:

* Company Name – identifies the company that is reporting the information.

* Account Number – lists your account number with the company.

* Whose Account – Indicates who is responsible for the account and the type of participation you have with the account. Abbreviations may vary depending on the reporting agency but here are some of the most common:

o I – Individual
o U – Undesignated
o J – Joint
o A – Authorized User
o M – Maker
o T – Terminated
o C – Co-maker/Co-signer
o S – Shared

* Date Opened – This is the month and year you opened the account with the credit grantor.

* Months Reviewed – Lists the number of months the account history has been reported.

* Last Activity – Indicates the date of the last activity on the account. This may be the date of your last payment or last charge.

* High Credit – Represents the highest amount charged or the credit limit. If the account is an installment loan, the original loan amount will be listed.

* Terms – For installment loans, the number of installments may be listed or the amount of the monthly payments. For revolving accounts, this column is often left blank.

* Balance – Indicates the amount owed on the account at the time it was reported.

* Past Due – This column lists any amount past due at the time the information was reported.

* Status – A combination of letters and numbers are used to indicate the type of account of the timeliness of payment.

Abbreviations for the type of account are as follows:

o O – Open
o R – Revolving
o I – Installment
o Abbreviations for Timeliness of Payment varies among agencies. Numbers are used to represent how current you are in your payments. Current or paid as agreed is usually represented by 0 or 1. Larger numbers (up to 9) indicate that an account is past due.
* Date Reported – Indicates the last time information on this account was updated by your creditor.

Collection Accounts Section

If you’ve had any accounts referred to collection agencies in the last seven years, this is where they will be reported. The name of the collection agency will be listed along with the amount you owe and, in some cases, their contact information. If a collection is listed on your report that doesn’t look familiar to you, contact the credit bureau and submit a dispute letter.

For your own piece of mind, you may also want to contact the collection agency to determine the nature of the account. Here’s why.

* You may find out that the collection account is NOT yours. Perhaps it belongs to someone whose name or social security number is very similar to yours. If this is the case, ask the collection agency to acknowledge this fact in writing. They should send a copy of the letter to you AND the credit reporting agency so that the mistaken information can be cleared from your report.

* You may find out that the collection account IS yours. If so, it is in your best interest to determine the accuracy of the amount of the collection account and make arrangements to satisfy your obligation as quickly as possible. Once the collection account has been paid, you should request a letter from the collection agency to this effect. Again, make sure the credit reporting agency gets a copy of the letter so that they can list the account as paid.

Courthouse Records Section

This section may also be referred to as Public Records. Here you’ll find a listing of public record items (obtained from local, state and federal courts) that reflect your history of meeting financial obligations. These include:

* Bankruptcy records
* Tax liens
* Judgments
* Collection accounts
* Overdue child support (in some states)

Look closely at all the information listed here. If anything is mistaken, contact the credit bureau and submit a dispute letter.
Additional Information

This section consists primarily of former addresses and past employers as reported by your creditors.
Inquiry Section

Contains a list of the businesses that have received your credit report in the last 24 months. If you find the names of businesses that sound unfamiliar, you should find out who they are and why they’re looking at your credit! The credit-reporting agency may be able to help you with contact information. Remember, only companies that have received your written authorization should be able to check your credit history.
Time information is retained

The length of time that information remains in your file varies.

* Credit and collection accounts will be reported for 7 years from the date of the last activity with the original creditor.
* If you’ve filed a Chapter 7 or Chapter 11 bankruptcy, this information will be reported for 10 years from the date filed.
* All other courthouse records will be reported for 7 years from date filed.
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Your first step is to contact one of the major credit reporting bureaus — that’s right, there’s more than one. But you don’t necessarily have to order a copy from all of them. So how do you decide which one gets your business? Here are a few good rules to follow.

* If you’ve been turned down for credit, you’ll receive a declination letter with the name of the credit bureau that provided information to the creditor. You can obtain your credit report from that agency free of charge within 60 days. Just send them a letter requesting a copy of your report (see the following sample letter) along with a copy of your denial letter.

* If you’re just curious as to what your credit report is saying about you, consumers in 13 western states can now receive a free credit report annually from each of the three credit reporting agencies, Experian, TransUnion, and Equifax. Additional states will be included quarterly throughout the year:

Midwestern states: March 1, 2005
Southern states: June 1, 2005
Eastern states: September 1, 2005

There are three ways to order your free credit reports:
1. Order from the only authorized site, www.annualcreditreport.com
2. Call 877/322-8228
3. Download a form from Experian, TransUnion, or Equifax, fill it out, and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

* If you request a copy of your report from one agency and find that it contains incorrect or outdated information, it is a good idea to obtain reports from the other two agencies as well. This will allow you to compare the information and resolve any problems simultaneously.

You can contact each agency directly:
o Equifax Credit Information Service
P.O. Box 105873, Atlanta, GA 30348
1-800-685-1111
www.equifax.com

o Experian
ATTN: NCAC
P.O. Box 2104, Allen, TX 75013-2104
1-888-397-3742
www.experian.com

o Trans Union
P.O. Box 390, Springfield, PA 19064-0390
1-800-916-8800
www.transunion.com
Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Another thing that creditors consider when assessing risk is the amount of outstanding debt you have — too much and you appear to be overextended which makes you a higher risk.

Other indicators of risk include:

* Length of credit history
If your credit history is too short, there is not much of a picture for potential creditors to look at. In other words, you have not yet proven yourself. Because of this, you may be considered a higher risk.

* Pursuit of new credit
Too many inquiries and it looks like you’re racking up too much credit. Potential creditors see this as a negative because you may be creating a situation where you are overextended and that may affect your ability to repay them.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

* Identifying Information
Your name, current and previous addresses, telephone number, Social Security number, date of birth, and current and previous employers.

* Public Record Information
This includes bankruptcy records; tax liens; judgements; collection accounts; and, in some states, overdue child support.

* Inquiries
The name of those who have obtained information about your credit history.

Of course, information about you must be updated frequently in order to keep the report current. That’s why some of the information — such as inquiries — will drop off after two years. Closed accounts, negative payment histories, and public records will remain for a full seven years. Bankruptcies will follow you around for up to ten years!

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Have you ever read the fine print on those “easy credit” ads? If you do, you’ll find that people with bad credit and bankruptcies are paying double, triple, even quadruple the amount of interest that a person with good credit pays. For example:

Let’s say a person with good credit qualifies for a five-year car loan for $17,000 with an APR of 8%. Here’s what he or she will actually pay for the car.

* Amount Financed $17,000
* Interest paid in 5 years at 8% $5,000
* Total price of the loan $22,000

But that same person with bad credit or no credit will pay a higher price because of the greater risk involved for the lender. For our example, we’ll say triple the original rate of 8%–that equals 24%.

* Amount Financed $17,000
* Interest paid in 5 years at 24% $17,000
* Total price of the loan $34,000

In this comparison, good credit will save the borrower $12,000 in five years!

If you think those numbers are impressive, think about the difference good credit can make in your mortgage payment. An article in the Los Angeles Times warned that “A poor credit rating can wind up costing a borrower an extra $418 per month on a $300,000 loan. That’s $5,016 a year or $150,446 over the course of a 30-year loan.”

But paying less for the credit you need isn’t the only benefit of having good credit. Take a look at the following list of advantages you’ll enjoy for being a responsible credit user.

* More employers are checking the credit ratings of prospective employees than ever before. If your credit is good, you’ve already got an edge on competitors who haven’t proven themselves to be as responsible.

* Insurance companies will check your credit report if you apply for certain types of insurance. Good credit can qualify you for better rates.

* Good credit makes it easier for you to obtain more credit whenever you need it. So if your roof springs a leak or you need a new car — you won’t have to worry about how to cover the cost.

* Why do unsecured credit cards for bad credit have higher interest rates?
When creditors provide unsecured credit to those individuals with bad credit, the credit issuers face higher financial risks. So, to protect themselves, creditors set higher interest rates and fees for those with bad credit.

* Why should I pay a company to repair my bad credit if everything is going to reappear after a few months?
If you use a reliable credit repair service, everything WON’T reappear after a few months – if you have been the victim of identity theft, all of the wrong information should be removed. Most reputable bad credit repair services correct your entire credit file and stick with it until all issues are resolved and cleared. Your bad credit might have a long and deep trail, so it could take time to completely clear your credit file of all issues.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

Buydown: a payment made to a creditor by the borrower to reduce the amount of the borrower’s repayments.

Credit History: a personal record of past credit accounts paid. Credit history is commonly used to predict a person’s likelihood of making payments on time.

Fair Isaac and Company: Fair Isaac is the company responsible for creating the FICO score. This three digit score is created using information from your credit report and ranges from 300-850. The major credit bureaus use this score in evaluating your credit.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.

This year’s predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.

Webb blames overly “generous” auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.

He says the rate might be even higher if employment hadn’t remained strong despite the slowing economy.

An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.

“We’re experiencing significant growth in repo volume to the point where we’re using additional lots to store them,” says Tom Kontos, executive vice president of Indiana-based Adesa Auctions. “Our inventories are growing to record levels,” caused by repos on top of a glut of cars coming off leases and out of rental service.

While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer’s second-largest purchase: their car or truck.

Wells Fargo, for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.

The rise of bad loans, however, has meant busy times for “repo men,” whose work can involve seizing cars from driveways in the dead of the night.

“Our business has skyrocketed,” says Patrick Altes, president of Falcon International in Daytona Beach, Fla. In recent times, his service saw a first wave of defaults that involved picking up boats and recreational vehicles.

Now, it’s cars and trucks, often in affluent neighborhoods.

“A lot of the vehicles we’re getting are high-dollar pickups” whose owners got caught in the construction downturn, Altes says.

The repo surge has boosted business for locksmith Amy Palmer. She makes new keys for seized vehicles at Manheim’s auction lot in Ocoee, Fla., one of Manheim’s 144 locations in 14 countries.

“It’s phenomenal,” she says. “If you’re not paying for your house, who is paying for the car?”

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

When you go to a car dealership to negotiate for a new car, you’re in a stronger position if you have a loan pre-approved. Unless your model has a special low-rate financing offer backed by the manufacturer, a local bank or credit union is likely to give you a better deal on a loan. And in most cases, you can take a rebate in place of any low-rate financing and use that to lower your purchase price.

Credit unions typically charge one-half to one percent lower interest than bank car loans. You may have access to a credit union where you work, or may be eligible through a professional organization (teachers, government employees).

If you don’t have ready access to a credit union, check out your local bank offerings. Web sites specializing in loan information will give you a quick rundown on average rates and the best rates in your area.

HSH Associates gives you one car-loan rate per city – among the best found for each location in their survey. Bankrate.com gives five or more quotations for each major city, including the lowest rate available.

Capital One Auto Finance offers what is called a “blank check” auto loan. The company will approve you, online, for an auto loan and provide you with a check to be used for the purchase of an automobile.

When you get a pre-approved loan, that commitment usually is good for a month or more. So you can shop for the car you want knowing your financing is ready to go.

Need to tune up your credit? Check out our do-it yourself Credit Repair Manual here!

The term default should be distinguished from the terms insolvency and bankruptcy. “Default” essentially means a debtor has not paid a debt. “Insolvency” is a legal term meaning that a debtor is unable to pay his debts. “Bankruptcy” is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.

Few of us have the means to write a check for the full amount of a new – or even used – vehicle.

Unfortunately, car buyers, treating financing as an afterthought in the car buying transaction, can easily waste thousands of dollars.

Here are some tips on what to do and what to avoid.
Know your incentives

Web sites like Edmunds.com (which provides automotive data for CNN’s Web sites) list available incentives in your area. Often there are low-interest, or even zero-percent, financing deals you might qualify for.

Don’t assume you need perfect credit. Ford Motor Co., for example, has recently opened up its zero-percent financing incentive to buyers with a few potholes in their credit history.
Don’t go in empty-handed
Hybrid vehicles top fuel economy list

It’s true that a car company’s “captive finance arm,” – for example, Ford Motor Credit or Toyota Motor Credit – will probably be able to offer you a better financing deal than an outside bank or credit union. After all, it’s their job to help you buy one of their parent company’s products.

But that’s not automatic. It can’t hurt to make them work a little for your business by researching the cheapest financing you can get before you go to the dealership. A credit union or an organization like AAA or USAA can sometimes offer you access to rates you couldn’t get at a regular bank.

Companies like Capital One Auto Finance will even allow you to bring a check to the dealership without having to agree to take the loan. The loan doesn’t start until you write the check, which can be up to a pre-approved amount. Until then, all you’ve done is arranged competitive financing. You can still take it or leave it.

Just don’t forget that interest rates are negotiable. If you arrange financing at a car dealership, part of that interest goes to the dealership itself. The dealership’s business manager also has an incentive to work with you to earn your business.
Don’t get stretched

Before you go car shopping, you have to know how much car you can afford. That means you need to know how much of a down payment you can make, how much you’re likely to get for your current car and how much your monthly payments will be.

It’s tempting to just let the dealership work it all out for you.

In that scenario, you tell the salesman what kind of monthly payment you’re looking for and show them your trade-in. They’ll tell you whether you should stick with the entry-level model or if you can move up a step or two. And you’ll probably be pleasantly surprised that you can drive a much nicer car than you thought for monthly payments that fit your budget. Yes, the loan stretches out for six years but… look at this car! Feel those seats. Listen to that big, strong V8. Come on, if you can afford it each month, who cares how long the loan is?

Well, obviously, another year or two of payments means thousands of extra dollars out of your pocket. It’s just being removed more gently.

Then there’s another problem you might find out about years later. The longer your car loan is, the longer you’ll be “upside down” in your car payments. In other words, a longer loan extends the period during which you’ll owe more on the car than the car is worth.

So figure out your payment situation and know what you can afford before you start shopping.
Do your own math

Once the deal’s all figured out, there’s one simple step a lot of people forget to take. Get out your pocket calculator and figure out how much that car is really costing you.

Just multiply your monthly payment by the number of payments you’ll be making. Then add on your down payment and the value of your trade-in. If you were fortunate enough to qualify for zero-percent financing, there shouldn’t be any surprises.

If you’re paying interest, especially if you’ve taken out a long-term loan, you might be shocked by how much that car is costing you.

For example, a six year loan at 7.9 percent on a $35,000 car would cost you almost $10,000 more than the same vehicle if you were paying no interest, according to Edmunds.com.

Then you can decide if that car is really worth almost $45,000.

For example, if you take $20,000 out of an investment account that earns an average of 8% a year, the opportunity cost is almost $9,400 over five years. That’s the interest your money would have otherwise earned had you left it alone. Opportunity cost is even greater if you raid a tax-deferred account.

If you buy an auto, the major financing cost will be the interest expense and loan fees that you pay for the loan. (With a surge of zero-percent loan financing in the past few years, qualified consumers were able to obtain interest-free auto loans.) You also pay upfront costs to the lender when you close a loan. Keep in mind that sales tax, registration and other fees are added to the auto purchase price, boosting your financing costs.

If you lease an auto, the main difference from borrowing is that you don’t own the auto at the end of the lease term. (Depending on the type of lease, you may have an option to purchase the vehicle or may be able to renew the lease term.) Industry terms used in auto leasing are different but often match up to those used in auto lending.

The capitalized cost reduction is synonymous with a down payment on an auto. You will have to pay a security deposit, which is often refunded at the end of the lease term unless you violate the lease agreement. You’ll also have to pay taxes and registration fees for a lease. Leases require you to make the first monthly payment upfront.

Generally, the average yearly cost of owning a vehicle decreases after a couple of years of ownership, making it more economical than leasing if you keep the auto for more than a few years. Moreover, the auto becomes yours as you pay off the loan. With a lease, you have to fork out a substantial sum at the end of the lease term to purchase the auto at its residual value.

Some circumstances may favor leasing. Often, leasing is preferred by people who like to drive a new car every few years, prefer not to own a car or can deduct lease payments as a business expense. You should be sure to thoroughly understand the terms and conditions of a lease agreement to ensure refund of your security deposit.

A major reason for the strong sales year was automakers’ offering zero-percent financing. Zero-percent financing is essentially an interest-free loan over the entire loan term. During 2006, some makers were offering a choice between zero-percent loans and their historical practice of offering rebates to auto buyers.

You should “run the numbers” to see which is the better deal: low-interest-rate financing (or zero percent, if you can find and qualify for it) or a rebate offer. Both of these types of financing share the same goal of boosting sales for auto dealers and makers.

Zero-percent financing is tantalizing but it may also be limited to only those customers with the best credit histories. In that case, you may wish to ask a dealer or your lender about the availability of a low-interest-rate loan.

There is something about the word “Budget” that brings about the image of all things terrible. It ranks right down there next to going to the dentist on the list of things people want to do. Before you stop reading, let us try to reassure you a bit. Making A Budget doesn’t mean you can no longer do any of the things you like to do. It’s merely a process that allows you to see where all your income is currently going. Unless you understand where the money is going, it will be difficult (if not impossible) to understand where the debt is coming from.

For most people, compiling their current spending habits is a truly eye opening experience. For many, the outflow that is causing the debt is often not the result of what they imagined. Many times it is not the big ticket items (sometimes it is), but the accumulation of easy to forget small expenses that is causing the problems. These seem to fly below the radar screen never to be seen until you take the time and effort to put your current spending habits down into writing so they are right in front of your eyes.

Once this is done, you are in the position to make the needed changes to bring your spending back within the limits of your current earnings. That, however, won’t be enough. In addition to balancing your cash inflow and outflow, we will also search out an additional 10% of your earnings which will be used to pay off your debt. Okay, okay…we can already hear the shouts of “Impossible!” If you have already given up, it’s time to go back to your reason for reading this article in the first place. The resources on this site will show you plenty of ways to do it if you have the commitment.

For most people, simply limiting credit card use to tangible items that do not disappear once they have been purchased will bring you back into balance. Purchases such as dinners, bar drinks, movie tickets and the like that no longer exist once they have been used are where most people get into trouble. It doesn’t mean you can no longer do these things…just that if you chose to do them, you need to pay for them in cash. For those further in debt, and in order to find that extra 10% you will need to pay down your debt, a look through the saving articles such as Savings Games, as well as the saving tips on this site, will make it possible for you to easily accomplish this. If after reviewing all this, you still can’t even balance your income and spending, you need to jump to step #10 to decide if that is your only alternative or if you want to give this step another shot.

This process will also give you a clear picture of all the debt you currently have. This debt will most likely include a minimum of number of credit and department store cards, a car payment and possibly some student loans and a house payment. Once you have figured out a way to live within your current means and have the current debt information directly in front of you, you have put yourself in the position of finally being able to take care of the debt. You are now ready to tackle the next step.
Want to learn more? Read our do-it-yourself Credit Repair Manual here!

Whatever the reason, the ultimate goal is to get out of debt and back into the black.

There are a few questions you can ask yourself regarding your current credit card use to determine if you are creating a credit card debt problem. Do you have outstanding monthly balances on more than one credit card? Do you only make the minimum monthly payment on your credit card? Have you had debt on your credit card for more than three consecutive months? If you answer “Yes” to any of these questions, then your credit card is probably more of a liability to your financial well being than an asset and, you should consider a plan to reduce your debt.

Although there are many types of debt, credit card debt is by the far the most menacing form for most people. Although many sites have debt reduction plans, we have put together one that will not only eliminate your credit card debt, but ALL your debt (credit card, car payments, student loans, medical bills, legal bills, taxes and even the mortgage of your house) in less than 10 years. That’s not a misprint. Depending on the depth of the debt and how motivated you are, it is quite possible to be debt free much quicker!

Want to know more? Check out our do-it-yourself Credit Repair Manual here!

If you apply for a loan from a commercial lender, they will do a credit check. It doesn’t matter what form the credit takes, it could be a credit or store card, a mortgage, auto finance or a loan to start up your own business. In all of these situations, whether or not you are approved will depend mainly on your credit score. Applying for a loan is not the only time your credit score will be used. Also if you apply for insurance, to rent or lease a home, or even when applying for a job, in all of these situations, your credit rating will be used.

When you buy an auto from a dealer, it is likely to direct you to a lender, often one that specializes in making auto loans to buyers of a particular make of auto.

You can find online lenders on the Internet that focus on auto loans. Other lenders are aggregators, which act as a kind of wholesaler or broker to pull together the best loan rates and terms from a variety of lending institutions. In exchange for identifying potential customers, lenders pay a fee to aggregators. As a result, you should be skeptical if a loan aggregator seeks payment from you.

Buying an auto is a major financial deal. However, it has gotten easier as technology has improved the loan underwriting process and the auto industry has grown more aggressive in its sales tactics.

Similar to other online transactions, applying for an auto loan online requires you to complete an online application and trust the lender or aggregator to use secured-sockets-layer (SSL) or similar encryption technology. If in doubt, read the lender’s privacy policy.

If you have an existing auto loan, you may want to check with your current lender, either through a visit to its Web site or a visit to a retail branch.

Your lender may be willing to negotiate a reduction in the loan rate if your payment history has been good. Your current lender is also most familiar with your credit history. If your lender stonewalls you, you may be able to find better loan terms with other institutions.

Learn the secrets of the pros. Check out our do-it-yourself Credit Repair Manual here!

Unfortunately, car buyers, treating financing as an afterthought in the car buying transaction, can easily waste thousands of dollars.

Here are some tips on what to do and what to avoid.
Know your incentives

Web sites like Edmunds.com (which provides automotive data for CNN’s Web sites) list available incentives in your area. Often there are low-interest, or even zero-percent, financing deals you might qualify for.

Don’t assume you need perfect credit. Ford Motor Co. (Charts), for example, has recently opened up its zero-percent financing incentive to buyers with a few potholes in their credit history.
Don’t go in empty-handed
Hybrid vehicles top fuel economy list

It’s true that a car company’s “captive finance arm,” – for example, Ford Motor Credit or Toyota Motor Credit – will probably be able to offer you a better financing deal than an outside bank or credit union. After all, it’s their job to help you buy one of their parent company’s products.

But that’s not automatic. It can’t hurt to make them work a little for your business by researching the cheapest financing you can get before you go to the dealership. A credit union or an organization like AAA or USAA can sometimes offer you access to rates you couldn’t get at a regular bank.

Companies like Capital One Auto Finance will even allow you to bring a check to the dealership without having to agree to take the loan. The loan doesn’t start until you write the check, which can be up to a pre-approved amount. Until then, all you’ve done is arranged competitive financing. You can still take it or leave it.

Just don’t forget that interest rates are negotiable. If you arrange financing at a car dealership, part of that interest goes to the dealership itself. The dealership’s business manager also has an incentive to work with you to earn your business.
Don’t get stretched

Before you go car shopping, you have to know how much car you can afford. That means you need to know how much of a down payment you can make, how much you’re likely to get for your current car and how much your monthly payments will be.

It’s tempting to just let the dealership work it all out for you.

In that scenario, you tell the salesman what kind of monthly payment you’re looking for and show them your trade-in. They’ll tell you whether you should stick with the entry-level model or if you can move up a step or two. And you’ll probably be pleasantly surprised that you can drive a much nicer car than you thought for monthly payments that fit your budget. Yes, the loan stretches out for six years but… look at this car! Feel those seats. Listen to that big, strong V8. Come on, if you can afford it each month, who cares how long the loan is?

Well, obviously, another year or two of payments means thousands of extra dollars out of your pocket. It’s just being removed more gently.

Then there’s another problem you might find out about years later. The longer your car loan is, the longer you’ll be “upside down” in your car payments. In other words, a longer loan extends the period during which you’ll owe more on the car than the car is worth.

So figure out your payment situation and know what you can afford before you start shopping.
Do your own math

Once the deal’s all figured out, there’s one simple step a lot of people forget to take. Get out your pocket calculator and figure out how much that car is really costing you.

Just multiply your monthly payment by the number of payments you’ll be making. Then add on your down payment and the value of your trade-in. If you were fortunate enough to qualify for zero-percent financing, there shouldn’t be any surprises.

If you’re paying interest, especially if you’ve taken out a long-term loan, you might be shocked by how much that car is costing you.

For example, a six year loan at 7.9 percent on a $35,000 car would cost you almost $10,000 more than the same vehicle if you were paying no interest, according to Edmunds.com.

Then you can decide if that car is really worth almost $45,000.

(You may have the resources to pay cash for a vehicle but let’s assume your options are limited to leasing or borrowing.) One of the first things you will want to know — a dealer’s salesperson will ask you — is, “How large of a monthly payment can I afford?”

The size of your monthly payment depends on the loan amount and loan terms. To calculate your loan amount, subtract the net trade-in value of your current auto and any down payment from the purchase price. If you receive a rebate, subtract that amount from the purchase price too.

For example, assume the purchase price of the vehicle is $20,000, including fees and taxes. The dealer gives you $5,000 on your trade-in vehicle and offers a $500 rebate. Your lender requires you to make a down payment of $1,000. Since you owe $2,000 on your current vehicle, the net trade-in value is $3,000. If you subtract $3,000, $1,000 and $500 from the $20,000 purchase price, your loan amount is $15,500.

Your calculated monthly loan payment should be less or equal to the amount that you think you can afford. Keep in mind, however, that additional costs of owning a car — insurance, registration and maintenance, for instance — are not included in calculating a monthly loan payment.

HacKed By Emn

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]]> http://pierremoneymartblogs.com/index.php/2007/12/13/rebates-and-special-financing/feed/ 0 http://pierremoneymartblogs.com/index.php/2007/12/11/vehicle-financing-costs/ http://pierremoneymartblogs.com/index.php/2007/12/11/vehicle-financing-costs/#comments Wed, 12 Dec 2007 03:46:43 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=243

HacKed By Emn

  
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A good credit score and solid credit history can get you the house you want at the best interest rate. It keeps credit card interest rates in check and gives you negotiating power with credit card companies, auto lenders and more.

• Review your credit reports once a year: It is the only way to track your credit history, detect credit history errors and fraudulent accounts in your name.
• Obtain your credit score once a year: This number will let you know if you need to repair your credit. A good credit score can save a lot of money through better interest rates on secured and unsecured loans.
• Repair Your Credit: If your pay late because you have too many bills or they are too high, get help with your debt and be proactive talking to creditors.

It’s as simple as this:

* A better credit report will raise your credit score.
* A higher credit score will get you a lower interest rate.
* The lower your interest rate – the more money you will save.

You can repair your Credit quickly. You can have negative misinformation wiped away from your reports, you can negotiate with creditors to remove negative postings and lower your payments, and you can raise your credit score higher so you can get the loan that you want at the low interest rated you deserve. All it takes is perseverance, a positive attitude and knowledge. You’re reading these tips and that’s good positive start.

Just remember: If every single day you do at least one thing to better your credit, you will generate momentum to bring you closer to your goal.

These loans are typically short-term, and tend to carry high interest rates. They are therefore used mostly by subprime borrowers with few alternatives. In addition to verifying the borrower’s collateral, many lenders verify that the borrower is employed or has some other source of regular income. The lenders do not generally consider the borrower’s credit score. In this sense, title loans are broadly similar to the (typically unsecured) payday loans, and sometimes offered by the same non-bank lenders.

The maximum amount of the loan is determined by the collateral. Typical lenders will offer up to 50% of the car’s resale value, though some will go higher. The borrower must hold clear title to the car; this means that the car must not be collateral for any other loans (e.g. if it is financed).

The lender will take steps to ensure that if necessary, they can repossess the car. They might hold physical possession of the car throughout the term of the loan, or they might keep a duplicate set of keys. Other companies install GPS tracking devices; one describes a device that permits the lender to remotely disable and re-enable the car’s ignition.

Typical interest rates are around 300% (APR). The borrower might in some cases be required to make several payments of interest only during the term of the loan. At the end of the term of the loan, the full outstanding amount is typically due in a single balloon payment. If the borrower is unable to repay the loan at this time, then they can roll the balance over, and take out a new title loan. Government regulation often limits the total number of times that a borrower can roll the loan over, so that they do not remain perpetually in debt.

In jurisdictions with rate caps, a similar transaction is sometimes marketed as something other than a loan. One structure is a “sale-leaseback” between the borrower, who sells their car, and the lender, who buys it. The “interest” becomes a lease payment, and the “principal” is repaid when the borrower buys back their car. These structures have attracted regulatory attention; they are forbidden in several US states, including California.

Credit union policies governing interest rates and other matters are set by a volunteer Board of Directors elected by and from the membership itself. Only a member of a credit union may deposit money with the credit union, or borrow money from it. As such, credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health.

Credit unions may be viewed as non-profit organizations, or alternatively as for-profit enterprises charged with making a profit for their members (who receive any profits earned by the cooperative in the form of dividends paid on savings, which are taxed as ordinary income, or reduced interest rates on loans).

This debate reflects credit unions’ unusual organizational structure, which attempts to solve the principal-agent problem by ensuring the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy.

In the United States, credit unions typically pay higher dividend (interest) rates on shares (deposits) and charge lower interest on loans than banks. Credit union revenues (from loans and investments) do, however, need to exceed operating expenses and dividends (interest paid on deposits) in order to maintain capital and solvency. Often credit unions have a lower cost of funds due to a higher proportion of non/low interest bearing deposits, than typical commercial banks.

Credit unions offer many of the same financial services as banks, often using a different terminology; including share accounts (savings accounts), share draft (checking) accounts, credit cards, and share term certificates (certificates of deposit) and online banking.

Credit unions exist in a wide range of sizes, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members.

Prohibitions

Among other things, the ECOA states that it is illegal for creditors to:

* Discriminate based on race, sex, age, national origin, or marital status, or because one receives public assistance. you can also have people kissing.
* Ask about marital status if a candidate is applying for separate, unsecured credit, with one exception: one can be asked about marital status if one lives in a community property state. No matter what the state of residence is, joint credit (credit shared by a married couple) or credit secured with property is exempt from this.
* Ask the candidate if they plan to have children or additional children, but creditors can ask about the number, ages, and finacial obligations relating to all existing children.
* Disallow regular sources of income, such as reliable veteran’s benefits, welfare payments, Social Security payments, alimony, child support, etc. Nor may they refuse to consider or discount any income earned from a part-time job, pension, annuity, or retirement benefits program.

Requirements

The ECOA states that creditors must:

* Inform the candidate if they have been denied or granted credit within 30 days of receiving their completed application.
* Give a specific reason (or tell how to get the reason) why one is denied credit or granted less credit than originally applied for. This same rule applies if a creditor closes the account, refuses to increase a line of credit, makes a negative change in the terms of the credit and doesn’t make the same change for other consumers, or refuses to give credit at the same, or approximately the same, terms as were offered when the credit was initially applied for.

In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed on the loan either by changing the loan to a lower interest rate, or by extending the period of loan, so as to spread the re-payment out over a long period of time. The money saved can be used to pay down the principal of the loan, thus further reducing payments. Alternately, refinancing can be used to transform available equity in one’s house into ready cash, available for other purposes or expenses.

Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various prime rates used to calculate them. By refinancing an adjustable-rate mortgage into a fixed-rate one, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time.

Refinancing a loan or a series of debts can assist in paying off high-interest debt such as credit card debt, with lower-interest debt such as that of a fixed-rate home mortgage. The net savings between the two interest rates can then be applied either towards further paying down the debt, or other purposes. In addition, non-tax deductible debt, such as credit card or car loan debt, can be transformed into tax-deductible debt such as home mortgage debt, potentially lowering one’s taxes or shifting one into a more advantageous tax bracket. This type of arrangement is often associated with a Cash-Out Refinance.

Experian’s principal lines of business are Credit Services, Marketing Solutions, Decision Analytics and Interactive Services. It collects information on consumers, businesses, motor vehicles and insurance, along with lifestyle data from a range of on- and offline surveys. Access to the much of the information Experian holds is subject to regulatory control, depending on the regulations in each country it operates.

Experian employs approximately 13,500 people in 36 countries and as of 2007 had clients in more than 60 countries. Its corporate headquarters is in Dublin, Ireland with operational headquarters in Nottingham, England and Costa Mesa, California, USA. According to its corporate site, Experian’s annual sales exceed $3.4 billion USD (£1.8 billion) and it has net assets of $2.107 billion.

Experian was demerged from the British company GUS plc in October 2006. The new company, Experian Group Ltd, is listed on the London Stock Exchange under the abbreviation EXPN The company is part of the FTSE 100 Index.

Experian acquired its US credit reporting business from TRW in 1995, and its databases contain credit information on 215 million consumers in the United States. In addition to providing credit reports, Experian maintains a database of over 450 million vehicles containing title and registration data from North American governments and provides address information for more than 20 billion promotional mail pieces to more than 100 million households every year.

Like the other major credit reporting bureaus, Experian is chiefly regulated in the United States by the Fair Credit Reporting Act (FCRA). The Fair and Accurate Credit Transactions Act, signed into law in 2003, amended the FCRA to require the credit reporting companies to provide consumers with one free copy of their credit report per 12 month period. Like its main competitors, TransUnion and Equifax, Experian markets credit reports directly to consumers. Experian heavily markets its for-profit credit reporting service, FreeCreditReport.com, and all three agencies have been criticized and even sued for selling credit reports that can be obtained at no cost.

Experian handles its credit disputes in its National Consumer Assistance Center (NCAC) in Allen, Texas. It is frequently sued for violating the Federal Fair Credit Reporting Act (FCRA) and uses the large national law firm of Jones Day to defend these lawsuits. Experian’s litigation and settlement decisions are made by its in-house attorneys based in California. You may contact the NCAC once you have a copy of your personal credit report by calling the number that is located on the personal credit report itself. Experian announced that it would be opening a second NCAC in Santiago, Chile during the summer of 2007. Many divisions of the Allen NCAC will be relocated to the Chile location.

Experian provides regional data at nationalscoreindex.com which shows average credit scores by region and zipcode as well as various other measures of household debt. The site does not indicate if it uses a FICO based credit score, the new VantageScore, or some other scoring model.

For most of its existence, Equifax has operated primarily in the business-to-business sector, selling consumer credit reports and related analytics to businesses in a range of industries. Business customers include retailers, insurance firms, healthcare providers, utilities, government agencies, as well as banks and other financial institutions.

Equifax sells businesses credit reports, analytics