If your money is controlling your life, you may have the feeling that you get up in the morning and go to work for the sole purpose of bringing home a paycheck and signing it over to the mortgage holder, the auto finance company, the utility providers, your eldest child’s college tuition office, your youngest child’s youth activity director and every door-to-door child pitchman selling school fund raising items.

How can you tell when your money is out of control? You fell as though it is simply getting up and leaving your wallet whenever it darn well feels like it. So what are you to do about your money and controlling where it goes?

Know Where You Stand

Anytime you are going to go change anything in your life, you have to know what it is that needs changing. This is the same whether you are talking about your finances or your weight.

What you need is a snapshot of where your finances are right now. The only way to do this is to create a Net Worth Index.

There is only one way you can create a Net Worth Index – and that is honestly. Drop the kids off with your in-laws, sit down with your spouse and start writing everything down on paper. You can use a computer spreadsheet if you want to.

Start by listing everything you have that can be sold, and how much you could reasonably expect to get for it. Do not claim your 19th Century rocking chair from Grandma Hopscotch is worth $500 if someone who isn’t sentimentally attached would only pay $100.

While you and your spouse are taking inventory, remember to include watches, diamond earrings, boats, vacation time-shares, stocks inherited from Uncle John and your retirement accounts. List everything and its’ sale value. When you do things like Certificates of Deposit and IRA’s where there is substantial penalty for early withdrawal use the face value. For our purposes we’ll figure you won’t be taking the money out until it has matured.

Now that you have inventoried everything of value and totaled up what it is worth, do the same for your debts. Add in loans from family, friends, banks, businesses, and mortgage companies, past due accounts with the Gas Company and all credit card balances. This is not the time to “forget” someone you owe.

Subtract how much you owe from how much you own. This number is your Net Worth and should be a positive one, though it could be kind of tiny. You won’t need to use this number again until next year when you calculate your Net Worth Index again.

If your Net Worth Index reveals a negative number you are definitely doing something right by working to bring your money under control. What you’ll have to do is follow these four steps, and if necessary taking drastic measures such as a second job, selling valuables, or even selling your current house and moving into a smaller, less expensive dwelling.

Develop Your Goals

After you know where you stand financially, you need to decide where you want to go. This involves setting some reachable targets or goals.

Goal setting is not very complicated and in this instance, we are referring to the overall target of gaining control of your money. To do this requires a few measurable small goals, sort of like baby steps.

Your first baby step is to create a plan to pay off your debts. Look at your list of debts again and find which one is the smallest. This is the one you want to pay off first. Pay your minimums on all the others, and then pay everything you can extra a month on the smallest debt.

When it is paid off, take all the money you had paid on the smallest and add it to what you are paying on the second smallest. Keep doing this until you are out of debts to pay off. It doesn’t matter if your debt is for a house or for your soda pop at the corner gas station Following this plan you have created to pay them off is your first baby step.

The second baby step will be the creation of an Emergency Savings Account. This account needs some money added each month until you have accumulated enough money to equal six months of your income. The money you set aside here will help you avoid debt when you have to make a surprise car repair or meet the deductible for your child’s appendix operation.

Your third baby step will be found in the next paragraph, under the heading of Spend with a Plan.

Spend With A Plan

Now that you know you are serious about controlling where your money goes, and you are seriously doing something about your debt it is time to make a plan. A spending plan is comparable to a budget in the same way an imported pickup compares to an F-150. When you use a spending plan to guide your finances, you know critical work is getting done.

You need to know what your take home, or net, pay is. Start with your gross monthly salary and deduct all taxes and Social Security contributions. Next you should subtract how much you tithe or contribute in charitable giving each month.

The amount you have left is your Spendable Income. The next thing to pay for is your house expenses and your grocery bill – include only the food you buy in a grocery store to prepare yourself, no eating out or fast food here.

The very next thing to subtract is your debt payment. Once this is taken out, you are left with the money you can spend on everything else you require to live on for the month – also known as your Disposable Income. Write down everything what all you spend money on and see just how much it costs you.

Since it wouldn’t do any good to be working at paying off your debts if you are adding to them every month, you had better find a way to cut your spending down below your Disposable Income or else you will never have control of your money.

Working with your spouse you can decide how to buy store brand things for a fraction of the cost, do without the monthly beauty saloon treatments, cancel club memberships and eat at home instead of dining out 3 nights a week. Perhaps you could even take your lunch to work instead of eating in the cafeteria every day.

The key is to find fun ways to decrease your spending amounts. Involve the children and find small ways to reward them for their practical money saving ideas, after all, they are part of the family and can help too.

Once your spending is under control and kept below the level of Disposable Income available, start to enjoy life. While you are probably not quite as materialistic as the Jones’, you can enjoy a great quality of life than they do as they run controlled by their money.

Clean Up Your Clutter

I’ve found that after setting debt repayment as a goal, wrangling the spending into line and in general improving my life by gaining control of my money there is too much stuff in my life. Not activities, but material things.

This is a good time for you to have a garage sale and clean out your closets, the attic and wherever you have hidden all that stuff over the years. The money you raise could be applied towards your smallest debt to speed along its repayment.

Another thing you can do is look for larger things in your life you can dispose of that will help you reach your goal sooner. Do you have a vacation home you haven’t taken a vacation to for several years? What about that second or third car – can you sell it, pay off the loan against it and use cash to outright buy a good used car?

You might think it will hurt to make large changes like this, and it might. Once you have taken the step though, you will feel an easing of the burden on your shoulders.

These four things are just the tip of the iceberg when it comes to controlling money. This short over view is enough for you to get started thinking about ways to begin taking control of your money, but it doesn’t begin to be a step by step guide. Those kinds of guides are out there, but they are too thick to include here.

Using this as a quick start guide to controlling your money will get you pointed in the proper direction. As you progress you’ll find dozens of ways to write your Spending Plan, a hundred more goals to set, and plenty of ideas on how to cut costs. When you are debt-free and telling your money what to do, instead of following it around, you’ll be a happier person.

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.

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.

U.S. car sales have dropped off 37 percent through May, but are expected to recover during the latter part of the year. However, reduced production – largely due to bankruptcies at General Motors and Chrysler – has left many suppliers low on cash, which could threaten their ability to ramp up production during the second half of the year. As such, suppliers are asking the federal government to guarantee loans in order to reduce risk and bolster lending.

“We have very good companies that can’t get financing,” Neil De Koker, president of the Original Equipment Suppliers Association, told Bloomberg. “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.”

De Koker warns that failure to put loan guarantees in place could disrupt production for GM and Chrysler when they finally emerge from Chapter 11 protection.

In all, suppliers will be looking to secure between $8 billion and $10 billion in loan guarantees. Industry trade groups will meet with the President’s auto task force on Wednesday, followed by a meeting with House and Senate members later this week.
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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.

An auto loan is a good way for individuals with bad credit to make a fresh start and re-establish a positive credit history. A range of factors contributes to a low credit score. Yet, you have the ability to change your current credit standing. For some, improving credit may be simple. Their situation may simply require paying past due bills and settling collection accounts. On the other hand, if a bankruptcy or repossession damaged your credit score, consider obtaining an automobile loan to improve rating.

Get Pre-Approved for an Auto Loan

Prior to beginning your search for a new or used vehicle, it may help if you get pre-approved for an auto loan. Accepting dealership financing with bad credit may not be the wisest choice. Most dealerships offer financing to individuals with poor credit. However, dealerships do not specialize in bad credit loans, thus they will not offer the best rate.

To assure getting a fair interest rate, secure your own private financing before negotiating with a dealership. Getting pre-approved for an auto loan is easy. Simply complete an online auto loan application. The lender will review your

complete a formal application to get pre-approved.

Apply for Auto Loan with a Sizeable Down Payment

Even though it is feasible to get an auto loan with bad credit, you are not promised the best auto loan rate. To raise the likelihood of attaining a slightly lower rate, apply for an auto loan with a down payment. Typical down payments are about 10% of purchase price.

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.

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/2009/04/27/bad-credit-auto-loans-%e2%80%93-ez-auto-loan-approval/ http://pierremoneymartblogs.com/index.php/2009/04/27/bad-credit-auto-loans-%e2%80%93-ez-auto-loan-approval/#comments Mon, 27 Apr 2009 18:49:06 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=788 Bad credit auto loans are provided by our auto loan lender network for people who are unable to qualify for a new or used auto loan elsewhere. The bad credit crunch we are experiencing has provided new opportunities from our bad credit auto loan lenders. You can guarantee approval for auto loans with bad credit, bankruptcy, poor credit, or a low credit score often with zero down payment.

The bad credit auto loan process takes less than 2 minutes to complete our free no obligation online auto loan application. You will be contacted shortly by a nearby auto loan center with all the details.

Get approved today for an auto loan even if you have bad credit

Fast Loan Approval Not the Only Consideration

Consumers have traditionally put the cart before the horse when it comes to buying cars–they find a car they want before getting a for a loan to pay for it. There are disasvantages to this scenario including:

• Limited time for comparing auto loans: Dealerships may pressure you to accept the first loan they can find for you. Their interest is in selling a car, while the customer’s interest is in negotiating the best deal possible on a vehicle and auto loan.
• Auto loan approval provides limits: Customers who have prior loan approval know what they can afford to spend, and can focus on affordable options instead of falling for a vehicle they’ll have trouble financing.
• Negotiating power:Buyers who are pre-approved for auto loan may have more leveragein negotiating; a pre-approved auto loan indicates that the buyer is not “just looking”, but intends to buy. Buyers can also reaffirm their price limits by saying “I have loan approval for $25,000. how can you help me?”
• Pressure to accept first loan offered: Dealerships depend on selling cars, and facilitating sales through streamlined in-house financing increases profits. Getting the best deal on auto loans requires comparison shopping and making  informed decisions.  Shop for auto loans from several sources.
• Missed opportunity: Don’t forget to shop for auto loans online. Online banks have less overhead and may pass savings on to customers.

Shopping for auto loans before shopping for a new ride can help in finding a loan that’s affordable and provides the best financing terms. Getting a great deal on a car is made sweeter by getting the best deal on a car loan.

Check out Auto Loan Options First

Consumers can increase their chances of getting a great auto loan by comparing loan options before looking for their next vehicle. The initial step in shopping for any type of credit is to verify current credit scores. Federal law allows consumers to obtain one free copy of credit reports from the three major credit reporting bureaus annually, but there is a fee for obtaining credit scores. Knowing credit scores is useful when negotiating with auto dealerships and credit providers.

Shopping for auto loans in advance also helps consumers determine how much they can comfortabley afford to spend for a vehicle; this can subdue the temptation to buy and borrow beyond their means. Dealerships may promise to “finance anybody,” but along with higher risk lending comes higher finance charges, and higher payments.

The Role of Debt in Getting Credit

Although auto loans are secured by the vehicles they finance, creditors may also consider how much debt consumers have when approving an auto loan. Keeping credit card balances at or below one third of each available credit line can help improve credit scores and the potential for getting favorable terms on auto loans.

Auto Loans Helpful for Improving Credit

Consumers attempting to rebuild their credit may find it easier to get an auto loan than unsecured credit such as credit card accounts. Repaying an auto loan over time, and ultimately ahead of time, is helpful for increasing poor credit scores.

Finding an Auto Loan

Having an established relationship with a financial institution may lead to favorable terms on an auto loan; credit unions generally offer members attractive rates on auto loans. Auto  dealerships accommodate customers by providing in-house financing. Dealership financing incentives are subject to change from month to month.   Rates promoted in advertising are typically for the best qualified customers, but it’s possible to qualify for a car loan with less than perfect credit. Shopping and comparing auto loans takes time, but it’s worthwhile for finding favorable auto loan terms.

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.

If you wear a seat belt, for example, you’ve astronomically improved your odds of surviving a car crash.

To up the odds even more, we’ve put together a list of five “gotta-have” safety features to look for when shopping for a new or used car or truck.

If you’re buying new, don’t leave the showroom without them, even if you have to pay extra. If you’re buying used, lean toward a car or truck with as many as possible.

First Gotta-Have: Side-impact air bags

Modern car design incorporates impact-absorbing crumple zones into the front end of vehicles to protect the cabin. But there isn’t enough space in the doors to allow for crumple zones.

That’s why side-impact collisions can be so deadly. Your head and chest will fare much better if they’re cushioned from all the bent metal, shattered plastic and broken glass coming your way.

These bags are now available on most models, and they’re increasingly available as standard equipment. If they’re still an option, this protection can cost anywhere between $250 and $650 a la carte, or as much as $1,300 if the bags must be bought as part of an option package.

Second Gotta-Have: Anti-lock Braking System

Anti-lock brakes keep you from skidding and allow you to steer around all sorts of potential hazards, even with your foot jammed down on the pedal.

Slam on the brakes without ABS and you’ll lockup the wheels, causing the car to skid or even spin. Anti-lock brakes repeatedly take your wheels to the threshold of locking up and then release them for an instant, allowing you to maintain control.

ABS is standard equipment on most new cars and trucks. Expect to pay $250 to $300 if it’s not.

Third Gotta-Have: Brake Assist

Even with anti-lock brakes, studies show drivers have a tendency not to brake hard enough during emergency stops.

So a decade ago, Mercedes-Benz developed a system that can detect panic braking, and automatically apply full pressure, when the driver fails to do so.

Brake assist can reduce emergency stopping distances by 20% to 45% — or as much as 70 feet — which is easily the difference between a close call and a rear-end collision.

It’s now built into most — but not all — anti-lock brake systems. Ask before you buy and consider a car or truck with brake assist to be much safer than one without it.

Fourth Gotta-Have: Electronic Stability Control

Stability control helps your car stay on its intended course by sensing tire slip before you do and taking immediate corrective action — automatically applying the brakes and cutting back on the throttle — to avoid a skid and keep you in control.

Think of ESC as an unseen hand keeping your vehicle on the road. It’s an absolute must on sport utility vehicles, which are particularly prone to tip and roll over if they skid.

Indeed, the government says stability control must be on all new cars and trucks by 2012, and will prevent up to 9,600 deaths and 238,000 injuries a year once every vehicle has it.

Look for ESC to become standard equipment on an increasing number of models between now and then. If you’ve got to spend extra for it, you may get away for as little as $200, but don’t be shocked if ESC is bundled with other options that pushes the price above $2,000.

Fifth Gotta-Have: In-Car Telematics

Whether they’re called OnStar, Tele Aid or Lexus Link, these wireless systems connect your vehicle to a 24/7 command center that knows where you are and can communicate with you and your car.

Benefits range from mundane — directions to a restaurant or opening the doors if you’re locked out — to lifesaving — automatically dispatching an ambulance anytime the air bags deploy.

The subscription price for telematic peace of mind should run $200 to $300 a year — plus any activation fees and airtime charges — depending on what level of service you subscribe to and how often you use it.

If you’re buying used be aware that many systems built before 2006 depend on analog cell phone service, which will be discontinued at the end of the year. An upgrade to digital service can cost as much as $824 — what Mercedes is charging to fix its Tele Aid hardware.

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.

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.

Downsize your ride.

You may have to overcome an upside-down loan and the shockingly low resale values of most full-size pickups and sport-utility vehicles — the prime candidates for such a switch.

Lower monthly payments: $250. Let’s say you borrowed $30,000 for 60 months at 7% interest. You’re paying about $600 a month. Reduce that to $18,000 for 60 months, and you’ll pay $350.

Less costly fill-ups: $50. Drive 1,000 miles a month averaging 15 miles per gallon, and you’ll spend $120 a month on gas at $1.75 a gallon. Drive the same 1,000 miles averaging 25 m.p.g., and you’ll spend $70.

Reduced insurance premiums: $10. The experts we spoke with say you can save 10% to 20%. That means your premiums could drop from $600 to $480 a year for the same coverage.

Total monthly savings: $310.

That’s far more than anyone can save by scrimping on things like eating out or going to the movies.

You could cut your costs even more if your current vehicle is out of warranty and you buy a new one or a late-model used car or truck that’s still covered by a factory guarantee.

Not having to worry about unexpected repair bills is a big plus, and many 2008 and 2009 cars and trucks are backed with the best warranties we’ve ever seen.

Of course, there’s a trade-off to downsizing your ride — you’ll be getting around in a smaller, less powerful car or truck.

But smaller doesn’t mean cramped. And less powerful doesn’t mean the best small cars, compact cars, compact wagons and small SUVs aren’t a blast to drive.

We think you’ll be surprised at how much fun they are — and how much stuff you can pack into them.

Many people buy a large pickup or SUV for tasks they only do once in a great while, like hauling furniture or tackling a muddy rural road. But they’re paying a lot for capabilities they use very little.

Think how much easier it would be to park a smaller SUV at the grocery store or mall. And that’s something you do every day.

The biggest hurdle to downsizing your ride will be financial.

Edmunds.com says one of every four auto loans is upside-down, which means the borrower owes more than the car is worth.

Many lenders used to allow you to roll that “negative equity” into a new loan on a new car, lending up to 130% of the new car’s value.

But you’ll have a hard time finding that kind of financing today.

That makes it difficult to get rid of a costly car or truck without spending thousands of dollars in cash to make up the difference.

The average deficit has grown to $4,300 as the resale value for large pickups and SUVs — the best candidates for downsizing — has slumped.

Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com, the most prominent valuation guide for used vehicles, says full-size SUVs “have declined in value about twice as fast as they normally would in the last 12 months.”

CarMax Inc., the nation’s largest used-vehicle retail chain, reports that during the company’s first quarter, which ran through May, wholesale industry prices (the price wholesalers pay for a vehicle that ends up on a used-car lot) for SUVs and trucks declined nearly 25%. That’s almost four times the normal depreciation.

“This is the most rapid depreciation of any vehicle segment that we have experienced in our 15 years,” says Tom Folliard, CarMax’s president and CEO.

Given that, Consumer Reports recently did a study to determine if, and when, trading in a fuel-thirsty SUV makes sense.

The magazine concluded that it’s almost impossible to save enough on gas to make up what you’re losing on depreciation if your vehicle is three years old or less.

It recommends holding onto the truck until it’s at least five years old, a point when most vehicles are paid off or at least worth more than the remaining balance on the loan.

Edmunds.com has a new Gas Guzzler for Gas Sipper calculator to help you decide whether ditching your truck is a good idea.

But here’s the bottom line: If you can’t afford the payments, and the insurance, and the gas, then you’ve got to do whatever it takes to replace your expensive ride, even if you have to take a big hit on depreciation.

You need to cut your expenses now, and this is one way to do it.

With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer.

Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases.

The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer.

I have copied some areas of this article directly from the Federal Trade Commission’s web site to ensure that the information is explained exactly as the law applies. These areas are identified.

The FDCPA lists the following guidelines that must be followed by all debt collectors:

(Copied from the Federal Trade Commission web site)

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~~Debt collectors may contact you only between 8 a.m. and 9 p.m.

~~Debt collectors may not contact you at work if they know your employer disapproves.

~~Debt collectors may not harass, oppress, or abuse you.

~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime.

~~Debt collectors must identify themselves to you on the phone.

~~Debt collectors must stop contacting you if you ask them to in writing.

It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.

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It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call.

Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date.

There are numerous companies that offer “Free Credit Reports”, however, you are obligated to sign up for their “Debt Monitoring Service” which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies:

Equifax

PO Box 740241

Atlanta , GA 03074-0241

(800) 685-1111

Experian

PO Box 2104

Allen , TX 75013-2104

(888) EXPERIAN (888-397-3742)

Trans Union

PO Box 1000

Chester , PA 19022

(800) 916-8800

I would advise you to visit the below link to find out exactly how to obtain your credit report:

http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm

Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights.

(Copied from the Federal Trade Commission web site)

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Your Credit Report

Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by “consumer reporting agencies” (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.

The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application.

Your rights under the Fair Credit Reporting Act:

~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.

~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes.

~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.

~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.

~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.

~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.

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If you believe that your rights have been violated under one of these laws you can file a complaint with the Federal Trade Commission online at:

While these laws won’t eliminate your obligation to pay your just debts they can prevent debt collectors and others from taking advantage of you.

• 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 Loan Options For Bad Credit Borrowers

More and more bad credit auto loan ads these days bombard debtors and other bad credit borrowers with the concept that they can buy a car or truck no matter what their credit may look like. Although most of these ads are based on truths, in this article I will carefully review some of the bad credit auto loan pit falls to be aware of, and help debtors to understand how some of these systems work.

The direct finance business works as a good credit auto loan would from your local bank, except borrowers with bad credit will be expected to bring in a larger down payment and pay a higher interest rate. Most local lenders, of course, will not make these loans at all to borrowers with bad credit. Depending on the severity of one’s bad credit, down payments for these loans can range from 20% to 50% and depending on the credit and legal limits of the state one lives in, interest rates can range from 12% to 26%. I have even seen in a few states extreme cases where borrowers already owning cars use their vehicles as collateral for very short-term loans. The effective interest rate can be as much as 144% per year. These loans, sometimes called title loans, offer a short-term loan at 12% per month, so when the loan can not be paid off another loan at 12% must be taken. Such lending is illegal in most states and even where allowed I can think of almost no situation where taking out such a loan would represent a prudent financial decision. In most cases debtors with bad credit should expect to pay in the 12% to 18% interest range. Amortization (the time needed to pay the loan in full if all regular payments are made) choices offered may only range from 2 to 4 years opposed to good credit borrowers whose auto loans may extend for as long as 5 to 7 years. Certain amortization schedules and higher interest rates combine for payments that can be considerably higher than for those with excellent credit. The good news is that if these loans are paid on time they can also serve as tools for rebuilding credit. Dealers who advertise their willingness to work with bad credit auto purchases often ultimately finance the transaction with one of the direct lenders as described above. Dealer’s who finance these loans internally sometimes combine of these things where they secure an external financing source by guaranteeing apart of the loan or allowing a part of the loan to remain un-funded until certain loan payments are made.

The greatest abuses in bad credit auto lending come from dealers who artificially inflate the prices of their cars and or the interest rates charged for the financing. A common tactic is for a dealer “specializing in bad credit purchasers” to price a car normally sold for $3,000 at $6,000, take $1,500 down and finance the balance at 24 to 26%. The reality would be that the borrower not only obligates themselves to a contract at a very, very high interest rate but that the under lying debt and price for the car bear no realistic relationship to the value of the vehicle. This leaves the borrower in a position that ultimately they will default on the loan further ruining their credit. Otherwise they will complete the contract by which time they may have paid double or triple what they would have for the same car if they had purchased it from a legitimate dealer at a legitimate price. The watch word here is “caveat emptor,” let the buyer beware, some dealers advertising they work with poor credit purchasers may be honest and forthright dealers. The best consumer protection is knowledge. Research the true value of the cars you are purchasing and try to pay only the wholesale cost plus a $200 to $500 profit for the dealer. In only the rarest of instances should you pay more than the retail price of the car.

Sometimes purchasing and financing a car through a dealer works to the buyers’ advantage. A company dealing in the finance operation only must make all of their money from the financing where the dealer also makes part of their money from the sale of the vehicle. In some incidences the incentive to sell the vehicle for the dealer and can mean financing concessions or less constringent guidelines. Surprisingly, this emerges frequently as a situation when purchasing a brand new vehicle. With a sizable down payment it may actually be easier for borrowers with bad credit to obtain financing for a new vehicle financed by the car manufacturers own funding arms because of the company’s incentive to sell their new cars. Purchasers of new vehicles can also be aided by the fact that interest rates are lowered in these transactions. Newer cars generally merit lower interest rates than older cars and amortization for new cars are longer too. The result maybe that the payment for purchasing a new car may be the same or lower than payments may be purchasing a used car.

With the popularity of the Internet and the mass marketing capabilities of television, two new types of marketing have emerged for someone with bad credit to obtain an auto loan. The most prevalent advertising of this type on the Internet is a dealer network system. A potential customer can click on a site advertising that they can purchase a car regardless of their credit. The site requests certain information about the borrower. This information is then passed along to a dealer capable of working with purchasers who have a problem in their credit history. How well these systems works will depend on the dealer used. It can be possible that the same referral network can have good and bad dealers. From the consumer point of view, since no fees are involved, the only caution is to understand the type of site you are working with and what they’re doing with your information.

Application services, predominately found on the Internet, involve automatic multiple submission of financial information to potential lenders. In this case, the potential borrower fills out some in depth financial information. The coordinator of the network then forwards the information to lending sources that may be willing to make the loan. When all works correctly, the borrower hears from four lenders who then fight for the loan by competing against each other to offer the best rates and amortization. For bad credit auto loan candidates it may be more a case of one or two lenders coming forward without much fighting, but where not many sources exist this can be a great time saver.

In most of these cases, either the car dealers or lenders may contact the borrowers directly. If you don’t have a car in mind already the dealer networks may be quite helpful in directing you to someone who has an inventory of vehicles and the experience and capability of securing a loan on the vehicle you wish to purchase. If you already have a vehicle in mind and are having trouble finding a financing source the multiple submission networks may be helpful.

Even with all of these opportunities which will allow “almost” anyone to obtain vehicle financing some borrowers will fall into the category that can not. People with no down payment whatsoever and bad credit may find it very difficult getting car financing. Debtors in the middle of bankruptcy proceedings may find that financing is not available until their bankruptcy case has concluded. Others may be pleasantly surprised to find financing only to realize payments on these loans beyond their means.

Don’t be discouraged if your first few attempts at financing fail or if you have to settle for your second or third choices of vehicles. With perseverance, and if needed a little polishing up of your tarnished credit, you should be able to obtain safe and reliable transportation despite a previous bout of bad credit or bankruptcy.

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.

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.

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.

Why don’t they work?

There are several answers to that question. Most budgets are doomed from day one because they are too complicated, don’t have the commitment of all involved or the numbers simply don’t add up. The biggest culprit is that most people don’t allow for unexpected expenses.

Let’s tackle these one at a time:

Too Complicated: When you list every expense you have on your budget you set yourself up for defeat. Some budgets include such things as cleaning supplies, dog food, haircuts and car gas. In order to keep track of all of these you would need a new box of envelopes every month.

Answer: Streamline your budget. By simply including a topic on your budget entitled “Household” where you can include everything you spend money on each month, excluding bills. Groceries will undoubtedly be the largest expense in this category. By taking the extra time to figure what needs to go into your household budget when you set it up, you can save a lot of time each payday.

Commitment:

1. Many times the commitment to live by a budget is lacking.
2. People get into spending habits that are hard to break.
3. There is constant friction in the family over money.
4. It is more comfortable to live beyond your means.

Answer: You have to consider all of the above problems when setting up your budget. The Family Budget is just that, the FAMILY BUDGET. Everyone in the family that is old enough to count should be included. I don’t mean to say that children should have a say in where the money goes, but they should be aware of what the spending limits of the family are. If you work closely with your spouse in developing a family budget you both are more likely to stick to it. There is one other detail that will help. By setting aside money for yourself and your spouse, that you don’t have to account to the other for, your budget is more likely to succeed.

The Numbers Don’t Add Up: You have more budget than you have paycheck. Generally, this is caused by not being realistic in your budget. You try to make your paycheck fit your budget.

Answer: Start by listing your household expenses and bills. Then include 10% of your income for long and short term savings. If this total is more than your paycheck, you have to cut back. Start by looking at your household budget. Are there items that you can do without? If you have money left over after considering all of the above, then increase your savings.

Unexpected Expenses: This can be from your car breaking down, need a new washer or any number of other expenses that you can’t predict.

Answer: While long term savings is for things such as a home or car purchase or college for the kids, short term savings is just as vital to your financial security. A short term savings will accomplish two things. It will provide you with the money you need to pay those unexpected expenses and it will cut down on the use of credit cards. The short term savings could save you hundreds of dollars a year.

When you develop your budget, keep the following things in mind:

1. Make your budget a simple as possible
2. Get the family involved.
3. Make your budget fit your paycheck, not the other way around.
4. Plan for the unexpected.

Don’t get me wrong. There are many people that can keep their check book up to date, even deducting all of the ATM advances and automatic withdrawals as they make them. However, too many people that write checks for everything wind up not entering a check when it is written or an ATM advance when it is made. The result is a bounced check fee of up to $25 for the bank and god only knows what the store where you wrote the check could charge you.

It seems like carrying cash to pay for things isn’t the “IN” thing to do. When I’m in the check out line, most people are paying with a credit card, debit card, or check. I realize that carrying cash has it’s risks. You could lose it or have it stolen. What are the risks when paying by check? There are absolutely none if you enter each check and properly deduct the amount from your account. However, I have counseled people that have as much as $100 per month in overdraft fees. This isn’t just for one month. This is an average over a six month period. That is a lot of money that these people couldn’t afford.

What’s the best way to handle my checking account?

If you don’t have problems keeping up with your checking account, keep doing what you are doing.

If you occasionally have bounced checks, I recommend that you use your checking account only to pay your monthly bills and use cash for everything else. If you have an ATM card, destroy it.

With that said, I know you will probably not quit writing checks or destroy your ATM card. So let’s look at what you need to do to keep up with your checking account.

• Determine exactly how much money you have in your account even if you have to go to the bank for help.
• Enter that information on a new page in your check register.
• Enter the date, your check number, payee and amount in your check register when you write the check. Don’t worry about the people in line behind you. This will only take a few seconds. If you like, you can deduct the amount of the check when you get home.
• Take your check book with you when you use the ATM and enter your withdrawal while you are still at the machine.
• Develop a system to deduct automatic withdrawals. It is probably best to deduct these on the first of each month.
• Add any deposits as you make them. You need to find out how much and when direct deposits should be entered in your check register.
• When you receive your bank statement, reconcile it as soon as possible. If you find any descrepancies check them out immediately. Don’t give up until you are sure you have resolved the problem. The balance you show in your check register should match the bank, less any bank charges.
• When you reconcile your bank statement be sure to clearly mark the checks that have been returned to you. One of the biggest problems people have with overdrafts is missing a check that is taking a long time clearing the bank. Go back at least a month to make sure all previous check have cleared.

I really don’t mean to insult anyone’s intelligence with this article. Having problems with your checking account, as with all other money problems, isn’t a matter of intelligence anyway, it’s a matter of discipline. It can cost you a lot of money by not applying that discipline to managing your checking account.

With millions of people experiencing financial problems it is absolutely necessary for everyone to know and understand their rights as a consumer.

Federal law requires that you receive fair and equal treatment from businesses issuing credit. This law applies when they evaluate your applications for credit, insurance, employment, and even leases.

The one area where I receive the most complaints are from individuals that are being harassed by debt collectors. These complaints range from debt collectors contacting their work and family members to being called names. All of these are a direct violation of the Fair Debt Collection Practices Act (FDCPA). This article spells out exactly what your rights are as a consumer.

I have copied some areas of this article directly from the Federal Trade Commission’s web site to ensure that the information is explained exactly as the law applies. These areas are identified.

The FDCPA lists the following guidelines that must be followed by all debt collectors:

(Copied from the Federal Trade Commission web site)

———————————————–

~~Debt collectors may contact you only between 8 a.m. and 9 p.m.

~~Debt collectors may not contact you at work if they know your employer disapproves.

~~Debt collectors may not harass, oppress, or abuse you.

~~Debt collectors may not lie when collecting debts, such as falsely implying that you have committed a crime.

~~Debt collectors must identify themselves to you on the phone.

~~Debt collectors must stop contacting you if you ask them to in writing.

It also prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.

———————————————–

It is very important to keep a record of any contact you make with your creditors especially when there is a dispute or misunderstanding regarding your account. You should list the name and address of the company, date and time of the call, the name of the person you spoke with and the content of the call.

Another important aspect of your consumer rights is Credit Reporting. Derogatory information in your Credit Report can have serious consequences. It is ultimately your responsibility to ensure that the information in your credit report is accurate and up to date.

There are numerous companies that offer “Free Credit Reports”, however, you are obligated to sign up for their “Debt Monitoring Service” which usually costs about $80. You will receive a free credit report and if you cancel your monitoring service within 30 days it will cost you nothing. Your best bet is to order your credit report directly from a Credit Reporting Agency. It will only cost you about $9. Below is a list of the three main companies:

Equifax

PO Box 740241

Atlanta , GA 03074-0241

(800) 685-1111

Experian

PO Box 2104

Allen , TX 75013-2104

(888) EXPERIAN (888-397-3742)

Trans Union

PO Box 1000

Chester , PA 19022

(800) 916-8800

I would advise you to visit the below link to find out exactly how to obtain your credit report:

http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm

Having knowledge of your rights under the Fair Credit Reporting Act (FCRA)can save you a lot of time and trouble when you apply for credit. The following explains these rights.

(Copied from the Federal Trade Commission web site)

———————————————–

Your Credit Report

Your credit payment history is recorded in a file or report. These files or reports are maintained and sold by “consumer reporting agencies” (CRAs). One type of CRA is commonly known as a credit bureau. You have a credit record on file at a credit bureau if you have ever applied for a credit or charge account, a personal loan, insurance, or a job. Your credit record contains information about your income, debts, and credit payment history. It also indicates whether you have been sued, arrested, or have filed for bankruptcy.

The Fair Credit Reporting Act (FCRA) is designed to help ensure that CRAs furnish correct and complete information to businesses to use when evaluating your application.

Your rights under the Fair Credit Reporting Act:

~~You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.

~~You have the right to know the name of anyone who received your credit report in the last ~~year for most purposes or in the last two years for employment purposes.

~~Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.

~~You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.

~~If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.

~~You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.

——————————————–

If you believe that your rights have been violated under one of these laws you can file a complaint with the Federal Trade Commission online at:

While these laws won’t eliminate your obligation to pay your just debts they can prevent debt collectors and others from taking advantage of you.

• Get a Free Quote • Find a Local Dealer

From now on, GMAC will only lend to prime borrowers, who have credit scores of over 700.  It’s expected the new restriction will block nearly 25 percent of all loan applications.

In addition, GMAC plans on limiting contracts with higher advance rates and longer terms. said it will restrict contracts with higher advance rates and longer terms.

Though the new policy is hard on consumers, it’s also troubling many GM dealerships.  GMAC has suspended sales bonuses to high-volume dealers, and also increased its fees for offering consumer financing with no incentives by 75 basis points.

GMAC, co-owned by both General Motors and Cerberus Capital Management, attributed the new rules to “the lack of stability in the global capital and credit markets.”

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Our customers who have been refused credit elsewhere will find that this is no obstacle for netcars. We won’t let financial problems in your past get in the way of you securing a car loan. Our staff are friendly and approachable, and we understand that everybody’s credit rating is different. Rates offered are dependant upon your credit score.

Genuine understanding

We know how easy it is to become downcast when you’ve been refused car finance due to bad credit. Often this situation occurs through no fault of your own. You may be self-employed and so have no proof of income, or you may have no credit history at all. Often you may have simply been a little bit late paying bills. At Netcars, we can overcome these so-called problems also as we have great working relationships with all of our lenders we are very optimistic we can obtain car finance for you!

Pierre Money Mart helps thousands of Car Loan shoppers every month with their car buying process. Let our Insider Guide give you access to valuable information to make you a more educated and powerful consumer purchasing your next car.

The guide features:

• Tips on how to Interact with the Lender
• Improve your chances of getting Auto Financing and getting a better Auto Loan Rate
• Be Prepared – Important Documents and Requirements for your Car financing
• How to check your Credit Report for errors Tips and Scams to watch for
• Why Lenders can still help Bad Credit Car Loan Customers

We have compliled the Insider Guide after months of research from all our Good Credit Auto Loan and Bad Credit Auto Loan shoppers. Get Finance Driven with Pierre Money Mart! Complete the short Auto Loan form above to be contacted by a Car Loan Specialist.

Negotiate the car’s price before you talk about the terms of a loan, so the dealer can’t hike the car’s price to give you a lower-rate loan. Even if you get low dealer financing rates of 2% to 5%, there’s a catch: these loans are usually short term. Since many must be repaid in 24 months, monthly payments can be steep.

Auto Loans at Pierre Money Mart Resources

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.

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.

Bad credit used car loans helps in getting car finance for people with bad credit. Not only can you buy a car with bad credit, you can get a bad credit auto loans, even at low interest rates. Buying a car with bad credit is no more a difficult feat to accomplish. There are a number of loan schemes available to fit every ones pocket and preference. Moreover, it is even possible to get low interest auto loans even with a bad credit. A low interest car loan can enable you trim down the repayment amount and thereby, help you save money.

Why Pay More When You Can Get For Less
Bad credit auto loans that are available with low interest can be obtained in two forms. One is the secured form and the other being unsecured. In the secured option, you may have to either place your property or bank account or any other asset as a security for the loan. Even the car you are purchasing can work as your security. However, if you do not wish to put any of you assets on stake, you can opt for the unsecured loan.

This type of loan will be granted to you, based on you credit static and your repayment capacity. In general, for a bigger amount, a secured loan is a better option. On the other hand, for smaller amount, unsecured loan fits well. So the situation is practically such that, anyone can buy a car with bad credit.

When buying a used car, a car that is less than five year old has a better chance of getting a low interest bad credit used car loan. Further, when buying a car with bad credit, you should always get their auto loans pre approved. This gives you better control at the time of purchase. Car finance for people with bad credit has become so simple these days that even a child can go and get one (provided he is given the right).

Car finance for people with bad credit is no big deal. Bad credit auto loan is available for anyone who can think of it. Buying a car with bad credit is even possible with low interest car loans. If you are someone with a bad credit history and planning to buy a car, a bad credit auto loan is the answer. This site provides a comprehensive and easy solution to all your needs related to low interest car loans.

Get Fast And Easy Online Low Interest Car Loans
Normally, a bad credit involves paying high interest for securing car loans. With the help of our low interest car loans, you will be able to get an auto loan that will reduce the burden of your loan greatly. Whether you decide to take a secured or unsecured loan, this site provides auto loans for all kind of people. Car finance for people with bad credit has never been easier with our attractive loan schemes that are customized to suit every need.

What more is that, you do not need to even move a step from your seat to have the loan in your pocket. This site provides you with all the necessary details you require to complete acquiring a car loan, sitting right where you are. Get free quotes for the car of your choice here and choose the one that matches best with your expectations. When you are done with that, all you need to do is, fill the online application provided in this site with the minimum necessary details. The approval will take place within minutes and in no time; you will be armed with ammunition in the form of your car loan.

Buying a car with bad credit is like a walk on the cake, with our systematic assistance. So wasting anymore time is keeping you away from driving your dream car. Take the first step – apply here and before you realize you are the owner of the car of your desire.

* W2 Income
o This type of income is most important to a lender because it is attachable (it can be garnished).
+ Acceptable POI includes:
# Computerized pay stubs with year-to-date calculations.
# Four consecutive handwritten pay stubs and previous years’ W-2. Often, cancelled checks from the employer are required.
o Self Employment or 1099
+ This type of income must be verified with tax returns prepared by a professional tax service. Lenders require two years’ tax returns. It is rare for a lender to approve a person with bad credit that has been self employeed for less than two years.
+ Lenders use a customer’s adjusted gross income. That is income net of all expenses. This can be found on Schedule C of a tax return, or line 31 of the 1040.
o Child Support
+ A copy of the court order and a recent check or check stub will likely be required. Lenders may not count this type of income if it will not last for the length of the car loan.
o Social Security
+ Form SSA 1099 and a bank statement showing deposits will likely be required.
o Unreported Income
+ Income from cash jobs is not counted when calculating income.

Purchase price
Total purchase price. Price should be after any manufacturer’s rebate.

Additional monthly payment
Your proposed extra payment per month. This payment will be used to reduce your principal balance.

Amortization
The number of years used in calculating the monthly payment. Loans that are amortized over a longer period than their loan term have a balloon payment. See “Loan term” for more information.

Amount owed on trade
Total loan balance still outstanding on the trade-in.

Annual percentage rate (APR)
A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example: a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate and very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.

Annual interest rate
Annual interest rate. Maximum interest rate is 20%.

Applied for Credit
Items on your credit report that you actually initiated the request for credit.

Assignment
The transfer of your loan from one lender to another. Or from the automobile dealership to the lender.

Auto loan interest rate (APR)
Annual percentage rate for the auto loan.

Non-taxable fees
Any additional fee that is not subject to sales tax. This usually includes document fees or any other fees that may be due at delivery and are not taxable.

No sales tax deduction for trade-in
In some states sales tax is calculated on your full purchase price. Others calculate tax based on the purchase price less trade in. Currently California, the District of Columbia, Hawaii, Maryland, Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on new vehicles.

Negative Trade Equity
The difference between the lien payoff and the value of your trade in. This is a Negative Number

Cash down
Total amount of cash used in this purchase. The larger your cash down payment the smaller the loan you will need to finance this purchase.

Charge Off
Items that the original creditor has given up on trying to collect. Often these Charge Offs will show up twice on a credit report, once from the original creditor as Applied for Credit, and once from a collection agency as Unapplied for Credit.

Co-Buyer
Unlike a Co-Signer a Co-Buyer’s income is combined with the Buyer’s. This option is normally limited to a spouse or a person closely related residing at the same residence.

Co-Signer
Someone who assumes legal responsibility for repayment of a loan in the event the borrower does not pay. A Cosigner may be considered for a Buyer who does not comply with all the credit requirements. The income of the Buyer, however, must meet all the income and budget guidelines without reliance upon the income of the cosigner.

Credit Bureau
An agency that compiles, maintains and provides credit and other personal information to creditors. There are three major credit reporting agencies:
o Equifax®
+ P.O. Box 740241
Atlanta, GA 30374-0241
Phone: (800)685-1111
o TransUnion®
+ P.O. Box 19022
Chester, PA 19022
Phone: (800)916-8800
o Experian® (formerly TRW)
+ P.O. Box 2002
Allen, TX 75013
Phone: (888)397-3742

Credit Report
A historical document that may include payment habits, number of credit or loan accounts, balance of those accounts, place and length of employment, and records of financial transactions. The following items normally appear within the credit report.

Credit Score
A statistical formula that assigns a numerical value to your credit worthiness. There are many different score models. When you apply for an auto loan the lender is most likely viewing your “Car Enhanced Score”. This score may be higher or lower than your regular credit score. Scores can vary widely among all three credit bureaus.

Credit Scoring
A system used by banks and other lending institutions to determine whether or not you are creditworthy. Each lender uses their own score card to determine if they will approve an auto loan.

Commitment fee
An upfront fee included in the APR calculation.

Judgments
A court order to repay a debt. A creditor with a judgment in their favor may request a wage garnishment to repay the debt.

Employment Insurance
Not available in every state. This insurance pays your monthly car loan payment if you involuntarily loose you job.

Extended Service Contract
Covers the cost of unexpected auto repairs. Service contracts normally have a per visit deductible and most do not cover normal wear items such as break pads.

Home equity interest rate (APR)
Annual percentage rate for the home equity loan.

Home equity closing costs
Any additional costs to the home equity loan. This should include any appraiser fees, points paid or other misc. fees.

GAP Insurance
If your vehicle is totaled for any reason the amount your insurance company pays may be a whole lot less than the actual amount you still owe on your loan. GAP Insurance pays the difference. This product is highly recommended if you are adding negative equity to your new loan.

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.

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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