Most people do not know that bad credit auto loans are very easy to get online; they channel all their strength, energies, and resources into searching for bad credit auto loans offline. These set of people have failed to recognize the fact that bad credit auto loans can best be sourced for online.

On the internet, there are hundreds of auto loaning schemes and auto loan lenders who are willing and have the potential, propensity, capability, and wherewithal to meet all your bad credit auto loan needs. Most of the online loaning schemes that exist online are trust worthy and very reliable to do transact business with. Their activities are regulated and governed by a government agency. The agencies that govern and control their activities vary from one country to another. Most online bad credit auto loan lenders not only operate online, most of them have physical presence offline. Some of them probably have offices in your in your city or neighborhood.

To avoid been scammed when applying for bad credit auto loans online, it is recommended that you should check and verify the website that you are transacting business with from the appropriate authorities. More also to avoid been scammed when applying for a bad credit auto loans online, it is recommended that you should try as much as possible to make enquires and seek the opinions of loan brokers and those who have experience with online auto loans before making out your application or applying for the loan.

Besides consulting the experts and the appropriate authorities, I would also advise that you should check the website of the lender to see or find out if they are affiliated to any bank or financial institution because chances are that every reputable lender should be attached or affiliated with a one financial institution or the other.

Online bad credit auto loans are honestly very difficult to come by. They are however very easy to apply for, take the chance today, your application might be granted approval.

Chapter 7 Bankruptcy is a straight forward bankruptcy that eliminates most debts and relieves you of your responsibility of paying most creditors. There are, however, some debts that you are still required to pay even when filing chapter 7 bankruptcy. These include taxes, child support, alimony, student loans, legal judgments against you, money you obtained through false financial statements and loans not listed in the bankruptcy filing. While the court may force you to surrender property you own in order to help satisfy the debt, you are usually able to keep your home, car, tools used in your job and personal property.

In Chapter 13 Bankruptcy, unlike chapter 7 bankruptcy where your debts are relieved, you are required to pay back all or part of your debt. You surrender control of your finances to the bankruptcy court which will approve a repayment plan based on your financial resources. The plan will lasts from 3 to 5 years. During the period of repayment, The chapter 13 bankruptcy plan provides that you do not have to pay interest charges on the debt during the repayment period and your creditors can not harass you for repayment during that period.

If you find that one of these bankruptcy options is the only one for you, then rereading this article will be of even more importance. It will let you take a preemptive measure to get your personal finances in order so something like this never has to happen again.

Sometimes the only way to stop a snowballing problem is to go back to the top of the hill and find out what started it. If you’re up to your eyeballs in credit card debt, take a step back and recount your money missteps. Knowing your weaknesses could help prevent you from falling back into the bad-credit pit and show you a way out. According to Gail Johnson, vice president of business relations at Consumer Credit Counseling Service of Greater Dallas, a nonprofit financial-management service, consumers mired in debt make common financial blunders, most of which they can prevent with discipline and behavior changes. Learn from these mistakes and start paying off your debt.

Bad Habit No. 1: Misusing balance transfers Transferring balances on high-interest cards to lower-rate cards can be an effective technique, but it’s easy to make it a good idea gone wrong. Transfer a balance onto a card with a low introductory rate and you can potentially save money on interest if you refrain from charging on it and focus on paying off the balance before that introductory rate expires. But most people continue to charge on the new card and wind up with more debt once the teaser rate expires, says Johnson. In fact, new purchases may pull an altogether different interest rate. Read the fine print very carefully, and only attempt the balance-transfer maneuver if you can control your spending on the new — and old — card. Try this: If you can’t refrain from charging, balance transfers won’t get you out of debt. If you’re really in the hole, consider getting a part-time job and dedicating your earnings to your debt load. If that’s not possible, go back to your budget and cut back on unnecessary expenses such as restaurant outings and cell phone extras. Put the money you save toward paying off your balances. Pay for new purchases with cash or a debit card.

Bad Habit No. 2: Not checking credit reports — you can’t change them anyway. Wrong. If you have credit cards, pull your credit report at least once a year and check it for errors. Purging your record of inaccuracies can be crucial for getting better interest rates, landing the job you desire and stopping an identity thief from ruining your credit rating. Your credit report also affects your credit score, which determines how high your interest rates will be on future loans. Dispute anything you think should not be there. The Fair Credit Reporting Act allows for the correction or deletion of inaccurate, outdated or unverifiable information, provided that a reinvestigation into the disputed data sides in your favor. Unfortunately, negative but truthful data must stay put. A Chapter 7 bankruptcy filing, for instance, will remain on your credit report for 10 years, a Chapter 13 for seven years. Try this: You can request one free copy from each of the big three credit reporting bureaus, Experian, TransUnion and Equifax, every year. Why bother? Errors on your report, such as a payment marked late that came in on time, could raise your interest rates, lower your credit score and affect your ability to obtain credit in the future.

If you do find a mistake, send a correction letter to each of the credit bureaus that show the error. Experian allows you to dispute errors online, as do TransUnion and Equifax . Don’t bother with so-called credit-repair clinics that aim to charge you hundreds or thousands to fix your credit record. “Anything you can legally do to repair it you can legally do for free,” says Johnson. Of course, if you’re not willing or dedicated enough to write those letters and follow up with the credit-reporting agencies, paying someone else to do it for you may not be such a bad idea. Better to have someone dispute the errors rather than no one. But be extremely careful in selecting such an organization — try to get referrals and seek out others who have been satisfied with the service.

Bad Habit No. 3: Failing to alert creditors about a financial hardship You heard the rumor: Layoffs are coming to a department near you next week. Don’t wait until it happens to worry about how to pay your bills. Do some damage control right away. Try this: “The best time to negotiate is before the problem spirals downhill,” says Johnson. Call the credit card company and explain the problem you’re about to have. Ask if they could temporarily lower your interest rate or extend your payment deadline. Some issuers have in-house help programs that provide such short-term services to customers.

Bad Habit No. 4: Thinking of ‘budget’ as a dirty word The word may call to mind tedious self-trickery meant for those with low incomes, but everyone could benefit from deciding on certain amounts for spending, and sticking to the amount no matter what. It also makes sense to budget for known future expenses, such as quarterly insurance premiums, college textbooks and rent. Not saving up in advance means you’ll have to charge expenses or cut into funds set aside for necessities. Budget these fixed costs while you can handle small financial pinches.

Try this: To find out what’s draining your finances, keep track of where your money goes for a month. Use a spreadsheet, financial software or a pen and paper and categorize your expenses. Doing this will reveal whether you’re spending too much on expenses you could trim, such as restaurant outings and gas. Then you can consider cooking at home more often or consolidating driving trips. Cut back as necessary without cutting out expenses important to you. Johnson suggests that if you enjoy watching TV, but don’t tune in to a majority of the 300-plus channels you have, consider cutting back on your cable package instead of cutting out TV altogether. For a detailed household spending plan, try this home budget work sheet. Plan for future costs by figuring out the total amount you’ll owe and divide by the number of months you have until that day, says Johnson. If you have money due next month, divide by the number of weeks you have and save that amount every week.

Bad Habit No. 5: Using retail store credit cards to make use of discounts Chances are, that card carries a high interest rate you’ll be forced to deal with if you don’t pay off your balance each month. Try this: If you must charge your purchase, use your general-purpose credit card, says Johnson. If you can’t pay off the balance, at least you’ll pay a lower interest rate. Limit the total number of credit cards you have to just two, if you can: one you can pay off each month and one with a low interest rate for those large purchases you’ll pay back over time.

Bad Habit No. 6: Procrastinating on creating an emergency fund Learn to save for financial emergencies. Even if you feel robust and invincible, a single emergency room trip or car accident could force you to put large balances on credit cards, causing interest to accrue and more debt to pile up. “That rainy day will happen,” Johnson says. “It’s not a matter of if, it’s a matter of when.” If your tire goes flat and you can’t pay upfront for the replacement, for instance, you’re stuck with charging it or reducing funds earmarked for necessities. That’s where the emergency fund fits in. Try this: Maintain an emergency fund of at least three to six months’ worth of living expenses, and keep your insurance policies up to date. Work toward that goal by socking away 10% of your take-home pay each month in a liquid savings account, says Johnson. If you receive a raise or bonus, add that money to savings. Since you’re not used to the extra cash flow, you won’t miss it.

Bad Habit No. 7: Paying bills in no particular order While the order may not matter if you can pay all the balances, it will matter if you fall short one month. Say you pay off the balances on your credit cards first, then find you can’t make the minimum on your house payment or monthly rent. You’ve put the roof over your head at risk. Try this: “Pay for living expenses first,” says Johnson. After the house or rent payment, necessities such as utilities, groceries and medical care should top the priority list. Next comes the car payment — you want to avoid repossession, obviously. On down the line, secured loans and co-signed debts follow in importance, then unsecured loans and credit cards. “Ideally, everyone can get paid, but if a choice has to be made, paying in this order will do a better job of keeping the home life stable.” Since bills often aren’t due in this order, you’ll need to work out a payment schedule and set aside money from each paycheck. See No. 9.

Bad Habit No. 8: Charging purchases instead of paying in cash or with a debit card How many times have you charged services or merchandise when you had the money to pay with cash or debit? Insignificant purchases of $20 and $30 made several times over can quickly add up, particularly if you already carry a balance. Balances you can’t pay off each month mean paying interest charges and, subsequently, more money for items you could have bought outright, interest-free. Try this: Make a habit of paying for purchases under $50 with cash, debit or check. Knowing that the money has to clear the bank sooner could help curb your spending habits. Just be sure to check your balance regularly to ensure that you have enough funds.

Bad Habit No. 9: Making credit payments late After all, it’s only a $39 late fee. Besides wasting money you could’ve put toward the balance, a payment that arrives at least 30 days past due can throw your account into default and triple your interest rate. Plus, other creditors may start charging you a default interest rate as well, thanks to a universal default clause buried in your contract. “Creditors are constantly reviewing your credit activity, and if they see you falling behind with one creditor, even if you have a perfect payment history with them, they can raise your interest rate,” Johnson says. Try this: On a calendar, mark upcoming paydays and payments that should come out of that paycheck, she says. If you’re mailing payments, send them seven to 10 business days in advance. Better yet, sign up for online bill pay. Just check that the address on file and the address on the statement match, or the payment might not arrive on time. If you’re still late, call the creditor, explain the situation and ask them to forgive the late fee. Check your credit report and be sure the information shows up correctly.

Bad Habit No. 10: Making the minimum payment only Paying the minimum is better than paying nothing, but it doesn’t do much to pay off most balances and forces you to keep paying interest. By paying interest on interest, you lose any savings from buying a dress on sale, Johnson says. Try this: If you can afford to pay more or in full, go ahead and pay as much of the balance as you can. You never know when you’re going to have a tough month. Pay in full every month and you can avoid interest charges altogether. Or, if paying more than the minimum proves difficult, consider working an extra part-time job or decreasing your expenses — or both, says Johnson. Put all of your extra earnings toward the debt.

The person I got on the phone I asked a certain question, “Hello, I just wanted to ask you about the commercial which states no money down for any auto loan regardless of credit problems.”

The response I got started out with a “yes” and within about 10 minutes they asked me for my social security number for a credit check and how much money I would be putting down. You can imagine my surprise. I reiterated the commercial and specific quotes from the advertisement and again they insisted that they had to run a credit check. This was only the first subject I tackled.

“Why would you need to run a credit check if all credit issues do not matter to the eligibility of the loan?” Unfortunately no one could answer this after being transferred to several people.

I was then asked how much I was willing to put down on the auto loan. I did first explain that I was not interested in buying a car, I was merely interested for future reference if there was any truth in the auto sale pitch. They said they could not help me without some percentage on the table as a down payment on the loan.

Tip 1: Buy it used – We’ve all watched friends buy a brand new car. They are really excited about their purchase…for a few months. After a year or two, they usually complain about their high loan payments. Don’t make the same mistake! Buying a used car, even if it is just a year old, can help you save big. A new car drops in value dramatically as soon as you drive it off the lot. Plus, used cars these days can come with warranty and service packages, just like a new car. If the car you want isn’t available used or comes with a 0% APR offer, buying it new may make sense.

Tip 2: Research prices online – Buyers have the upper hand now that they can easily research prices and features of cars online. Before you go to a dealer, investigate the blue book price, MSRP, and other details of the car you are interested in buying. Print out these documents and take them with you. When a salesman tries to offer you a high price, you can use these facts in the negotiations.

Tip 3: Order a CARFAX report – Most sellers will give you a free CARFAX report for the vehicle you are thinking about buying. If not, go online and order one yourself. This $20 report will show you how many owners a car has had, where it’s been located, if it was in an accident and other “lemon” indicators. It is especially important to check out a car’s history, as recent floods in the south have put a lot of damaged cars on the market.

Tip 4: Check your credit – Reviewing your credit standing before you start to shop for a car can help you save big. If you have a high credit score, you may be able to qualify for the dealer’s special financing offers. You’ll also have extra bargaining power when negotiating a deal with a salesman. If your credit score is low, work on improving it for a few months before your application and take extra time to shop for the best loan offer.

Tip 5: Save on financing – The cheapest way to buy a car is in cash, but there are also ways you can save if you buy with a loan. Put down the largest down payment possible and choose the shortest-term loan in order to reduce your loan costs. Compare loan rates from banks, credit unions, and online lenders by using their free calculators. Once you’ve found the best deal, apply for the loan and take the financial paperwork with you to the dealer. You’ll usually get a much better rate through a bank or online lender than from the dealer’s financing office.

These tips can help you save hundreds, if not thousands, on your next auto purchase. Take control of the car buying process today…

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.

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

Lenders granting high risk loan

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

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

High Risk Loans Eligibility

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

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

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

But cars? Cars are high-ticket items that consumers plan on buying for months ahead of time. Shopping for them requires research, financial planning and attention to details…so actually, the Internet is an ideal place for car shopping! There are hundreds of web sites that cater to the prospective car buyer. Some are locally based, specialize in used cars or classic cars, or are sponsored by a manufacturer and highlights their car models. The following are overviews of some of the more general car consumer web sites, available 24 hours a day, at your fingertips.

This site caters to the used car buyer and allows for you to search for the model and location of the available vehicles. It will help you to find dealers as well as private owners in your area that are selling the car you want. Also included on the site is information about comparing cars, financing and insurance.

Site Highlight: An excellent source of used car tips and information. There is advice on test-driving pre-owned vehicles and buying/selling, among other topics.

Good Debt:

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

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

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

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

To guard against abuse and to protect your privacy, the FCRA requires that all businesses must meet the following requirements before they are allowed to access credit information:

*      Proof of a permissible purpose under federal law
*      A background check and on-site inspection of the business
*      A current business license
*      A signed contract requiring the business to use the data properly

The only time your credit report can be accessed without your permission is in prescreening for credit offers or if a judge subpoenas your credit information. You can opt out of prescreening by contacting the three major credit bureaus, although you will then receive no more pre-approved credit card offers.

Accepted or Rejected?

You have the right to know whether your application for credit was accepted or rejected within 30 days of filing it. If it was rejected, you have the right to know why. The creditor must either immediately give you the specific reasons your application was rejected or provide you with reasons if you ask for them within 60 days. Indefinite or vague reasons are illegal, so ask for specifics.

If you have been denied credit because of the contents of a credit report, the creditor must also provide you with information about how to contact the credit bureau that supplied the credit report. This is one of the few circumstances under which you are entitled to a free credit report directly from the credit bureau.

1. Purchase a calendar with the appropriate space for you to list your tasks. Some calendars offer weekly, daily, hourly breakouts. A notebook can also be used.
2. Prioritize your tasks and allow necessary time to complete each task. Remember to include travel time.
3. Try to complete your task in order of priority. You can go through your list and write “A” next to important items that must be done first today, “B” next to items that must be done before tomorrow, “C” next to items that must be done this week, delegated or started. Choose a priority system that fits you.
4. Stick to your schedule and move flexible items to another day should an emergency arise.
5. Check off tasks that are complete with a check mark. You can make another notation next to items that must get postponed or can wait for tomorrow, have been canceled or that you’ve delegated (with the name of who is taking care of it).
6. Allow space at the bottom of your schedule for low priority items or things coming up later in the week. If you have time today you can begin working on those items to get ahead.
7. Remember to transfer items not done today to tomorrow’s list.
8. Adjust your schedule system as needed to allow for your personal lifestyle and tasks.

The credit crunch is affecting us all as lenders are now classifying low-risk creditors as potentially moderate to high risk when it comes to auto financing. Bad credit lenders can help you out of this situation if you find you have been reclassified. It’s not that you have done anything wrong it’s just that the rules have changed. A transgression from your past that never caused you any problems is now affecting your auto financing. Bad credit lenders specialize in dealing with individuals that are unable to secure loans through traditional sources.

If you’ve been denied auto financing, bad credit lenders are ready and willing to help you “get back on the road” with a reliable vehicle. With the economy in tatters and traditional lending sources tightening their belts when deciding whether to provide auto financing, bad credit lenders are contributing to the recovery by approving loans for individuals such as you.

If you find that you are now classified as having bad credit, don’t despair. It’s simply a classification based on the economic times we are witnessing. It’s a problem that can be worked out with some strategic thinking. Take this opportunity to apply for an auto financing loan and improve your credit score for your next vehicle purchase.

- Obtain your credit report and review the contents. You may find some old accounts that remain unpaid. Clean these up by paying them now and keep records of the transactions. Give copies to the lender that you have chosen for an auto financing loan to show that you pay your debts.

- If you have had an excellent credit rating for the last couple of years, approach your creditors and utility companies for a letter of reference. This will provide proof to your auto financing lender that you have changed your ways. When deciding on whether to provide auto financing, bad credit lenders are less concerned with your distant past. The contributing factor for loan approval is that you have the ability to pay and that you currently pay your bills.

- Obtain a letter of reference from your employer and provide a copy to your potential auto financing lender. If there are no plans for layoffs at your company, ask them to state this in the letter. A secure job and a steady income is a major pre-requisite to obtaining an auto financing loan.

- Calculate how much money you can afford to pay on an auto financing loan per month. Refrain from “stretching yourself” to make the payments. Look for an affordable car that is reliable enough to last for a few years and meets your minimum vehicle requirements. They’ll be plenty of opportunity to purchase a more expensive vehicle in the future when your credit rating has improved and the economy has sorted through its problems. Be sure to include maintenance, gas, and insurance costs when determining your ability to pay an auto financing loan.

1. Credit cards for students

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

2. The bank of your checking or savings account

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

3. A department store or gas credit card

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

4. A secured credit card

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

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

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

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

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

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

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

We know what you’re going through

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

Your FICO score

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

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

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

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

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

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

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

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

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

A quick call to your agent might help you narrow your choices — and avoid a second case of sticker shock after you drive your new car home.

The reason: Along with your own driving record, your ZIP code and the demographics of the drivers in your household, the make and model of your vehicle can have a big effect on your insurance bill, says Russ Rader, spokesman for the Insurance Institute for Highway Safety. Of all of those factors, the type of vehicle you put in your garage is the only variable you can change immediately.

“The choice of the car itself is going to affect, in particular, what you will spend for comprehensive and collision,” says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute.

Why some cost more Collision-damage costs are one of the main factors in differentiating the cost of insuring one type of car over another, says Rader. To a lesser extent, you also want to look at how attractive the car is to thieves.

Vehicles that top the insurance-cost list tend to be either high horsepower, high dollar or expensive to repair, Rader says. An expensive choice: “Sporty cars that are favored by young drivers who are risky drivers, so they are crashing a lot.”

Higher horsepower means the driver is more likely to be going faster and getting into more accidents. That will send insurance rates up for everyone who owns a similar car.

Many of the vehicles that are expensive to insure “share a common problem, and that is horsepower,” says Kim Hazelbaker, a senior vice president with the Highway Loss Data Institute, an affiliate of the Insurance Institute for Highway Safety.

Size matters Some think that a smaller, more maneuverable car is able to outrun trouble and avoid crashes. It’s a myth, Rader says.

“When you look at the statistics and insurance claims, small sports cars tend to be in more crashes,” he says. Adding to the problem: “They tend to be engaged in faster driving.”

From a statistical standpoint, the safest models tend to be the full-sized family sedan-type cars, he says.

A few other special circumstances can also send rates through the roof. If a car is a popular target for thieves, your insurance company might charge you higher rates.

If you’re driving a high-priced car, it will likely cost more to fix after a collision. As a result, your insurance bill will go up when you add it to the policy, Rader says. Likewise, some luxury or high-end cars feature aluminum body panels that are more expensive to fix or replace than sheet metal, he says.

One other factor to consider: How much damage is your vehicle likely to inflict in a crash?

As sport utility vehicles have become more popular, insurance companies have had to study and factor that issue into premiums, Salvatore says. As a result, if you drive an SUV, your liability premium (which covers damage to other vehicles), could be higher because of the increased damage a vehicle of that size can cause in an accident, she says.

Most expensive models to insure

1. Mitsubishi Lancer Evolution
2. Mercedes CL-Class
3. Dodge SRT-8
4. Subaru Impreza WRX
5. Jaguar XK (convertible)
6. Lexus IS 300
7. Honda S2000
8. Acura RSX
9. Nissan 350Z
10. Jaguar XJ

Don’t let the list scare you; insurance cost isn’t necessarily a reflection of safety.

“A safe car is not necessarily the cheapest car to insure,” Salvatore says. The car itself could also be expensive or just expensive to repair after an accident, which would increase insurance costs.

But a high rate is a red flag to ask a few questions. For instance, if a car has a lot of horsepower and is involved in a lot of crashes, that can also send insurance rates up, even if the car itself is relatively inexpensive.

So if you’re getting ready to buy your teenager that dream model and the insurance rate comes back sky high, it may be a tip that it’s time to search for another make and model.

The least expensive Sometimes the driver really does make all the difference.

Insurance companies and crash analysts have noticed that vehicles most often associated with family transportation — such as minivans, station wagons and family sedans — get in fewer crashes than the high horsepower hotrods that appeal to young male drivers.

“It’s pretty traditional to see things like station wagons and minivans there — vehicles probably operated by soccer moms in non-aggressive fashion,” Hazelbaker says.

In addition, many (but not all) of the vehicles that rank low in collision costs also tend to be “generally, not real expensive vehicles,” he says.

The 10 least expensive models to insure, in terms of collision losses, starting with the least expensive are:

Least expensive models to insure

1. Volvo XC90
2. Chevrolet Malibu Maxx
3. GMC Safari
4. Buick LeSabre
5. Nissan Pathfinder Armada (2004 only)
6. Pontiac Montana (standard model)
7. Mazda MPV
8. Ford Thunderbird
9. Pontiac Montana (extended model)
10. Ford Taurus (station wagon)

1) Weatherize your home 
If you want to make your home more energy efficient, the stimulus package sets aside $5 billion for the Department of Energy’s Weatherization Assistance Program. The average family can make up to $6,500 in energy efficiency upgrades. It’s available to everyone who makes fewer than 200 percent of the federal poverty level – about $44,000 a year for a family of four. Contact your state energy office, which will refer you to a local nonprofit who will visit your house and do an energy audit before carrying out the work. 

2) Get Extended Unemployment Benefits 
As a result of the Recovery Act, everyone on unemployment will be receiving $25 extra each week. The stimulus package also suspends federal income tax on the first $2,400 in unemployment compensation that unemployed workers collect in 2009. The stimulus package also extends by 13 weeks the amount of time an unemployed worker can receive cash assistance.

3) Get the Government to Pay Your Health Insurance 
If you’re laid off from your job between September 1, 2008 and December 31, 2009 and you had health insurance with your old employer; the government will pay 65 percent of your health insurance premiums for nine months. This COBRA subsidy is available to most laid-off workers with a family income of under $250,000 – although in many states it does not extend to companies with fewer than 20 workers. Submit a claim for benefits with your health plan. The Department of Labor web site on COBRA and the Recovery Act has information.

4) Buy an Appliance and Get $200 
Buy an Energy Star-qualified appliance and get up to $200. Dishwashers, refrigerators and washing machines are covered by the Recovery Act’s $300 million grant State Energy Efficient Appliance Rebate Program. Details of how the program will be administered by each state are still being ironed out. 

5) Buy a House and Get $8,000 
If you’re a first time home buyer – or if you buy a house and have not owned your own home for at least three years – the IRS will send you a check for $8,000. All you have to do is fill out an IRS Form 5405 and include an amended copy of your 2008 tax return. Then, in about six weeks, the IRS will send you a check in the mail. This credit applies to purchases that close after April 8, 2008, and before Dec. 1, 2009. 

6) Get a Small Business Loan 
The American Recovery Capital Loan Program offers interest-free loans of up to $35,000 to help businesses with existing debt for up to six months. The loans carry a 100 percent guaranty from the Small Business Administration (SBA) to the lender, and require no fees paid to SBA. 

7) Get Money for College 
The Recovery Act appropriated $17 billion for Pell Grants, which increased the amount of money for each grant from $4,850 to $5,350 in 2009 and $5,550 in 2010. You can apply for this benefit with your campus financial aid office. There’s also a new American Opportunity Tax Credit of up to $2,500, which can be used for education-related expenses and an additional $200 million for work-study programs to help students find jobs on campus. 

Get Trained for a Green Job 
The Recovery Act sets aside a large pot of money for green jobs training in environmentally sustainable fields. The advocacy group Green for All has put together a Recovery Resource Center that lists opportunities created by the stimulus. 

9) Get Help Paying Your Transit Bill 
Under the Recovery Act, you can set aside up to $230 a month from your paycheck tax-free for the cost of commuting to work on public transit (the previous benefit was $120 a month). Your employer must enroll in the program for you to claim this benefit. Tell your boss or supervisor they’ll also save money because they won’t have to pay payroll tax on the money you spend on your commute. 

10) Eat 
If you’re having trouble putting food on the table, you can get more money for groceries from the federal government. Families eligible for Food Stamps can receive on average $80 more per month because of the Recovery Act.

Don’t be taken advantage of because you have bad credit. At pierremoneymart.com we are your friends. We know that having bad credit is the worst financial problem in the lending world. Individuals with bad credit can finally stay in the game and if you are one of those persons, a bad credit refinance car loan may be the answer to your financial crisis. Save money by replacing your existing car loan with a new finance deal and get a bad credit refinance car loan. Here is how it works. Apply today with refinanceitt.com for a bad credit car refinance loan, with better interest rates so you can effectively and efficiently make smaller monthly payments. When approved, refinanceitt.com pays the loans and existing balance to your existing lender. Your high interest debt to them is now repaid and you can breathe easier. Your new lower payments are easier to manage, making them easier repay and saving your credit score from further decline.

There are many benefits of Bad Credit Car Refinancing at Refinanceitt:

1. Lower monthly payments.
2. Extended time to pay off loan.
3. Rebuild your credit and regain a peace of mind.
4. Fix your credit problems as soon as possible, once you take the steps to improve your credit, other auto loan companies will be willing to offer you loans in the future.
5. Bad credit programs can also help to make you eligible for auto insurance.
6. Avoid personal bankruptcy.

Auto loans are offered by a number of lenders, all over the world. They are dedicated to capitalizing on the customer’s re-payment capacity in return for immediate finance to buy a vehicle. The rates and terms of the varied loan policies offered by the different auto loan companies are different and when you compare auto loans, it is important to ensure that the ground work and information assimilated is correct. You need to familiarize yourself with the different types of auto loans; the auto loans with a fixed interest rate and those with variable rates. While in the former, the rate of interest does not change throughout the life of the loan; in the latter, the rate keeps changing through the course of the loan.

The type of auto loan and the terms and conditions dominating the calculations are best understood via the fine print. It is very important to conduct prior research, relating to the types of loans and understanding the regulating factors for the finance extended. Auto loan is money loaned to enable you to purchase an automobile of your choice, according to the re-payment capacity you are able to prove to the lending company. In general, every auto loan is secured by placing the vehicle being purchased as collateral against the loan amount. This also means that in case of a default on payment, the vehicle is repossessed by the company.

Personal auto loans:

The auto loan could be researched and obtained according to your specific needs. The personal auto loan is one in which you personally take charge and responsibility for the loan to purchase the vehicle. The finance cannot be re-directed in this case to take care of any other expenses or purchases. The extended finance has to be used on the vehicle only and the automobile becomes the collateral to secure the loan. The repayment is made monthly, and the responsibility of loan lies with the person who signs on the dotted line. The onus is not shared by the company the individual works for or any other entity.

The auto loan procedure:

The auto loan procedure is a simple process that can be obtained by going to a lender and filling out an application form. You need to provide true and accurate details to the lender as the information, especially that on your job and income, helps the agent to work out details such as the rate of interest and the duration of the loan; not forgetting the repayment structure. The loan is in a way secured by the vehicle itself, and it hardly matters what your credit rating or score is! You could go through the procedure on you own or employ the assistance of a professional like a local auto loan specialist. Once you submit proof of your income and the details of the car that you have narrowed down your search to.

Auto loan access routes:

When choosing an auto loan, it is very important to check the terms and conditions carefully, to make sure that there are no hidden catches or extra costs involved. It is advisable never to accept the very first loan offer that comes your way. Comparison shopping online and in the various brick and mortar outlets helps to save, time, effort and most importantly – money! You need to check on the kind of finance you can avail of, the referrals on the company and the feed back from existent customers. There are sites that provide extensive access to many auto loan lenders.

Online quotes can be received and you can also apply online if you like what the mouse brings up! The quote should clearly indicate how much the loan will cost you, the interest you will be paying during the term of loan and the monthly payment. Auto loan can be accessed to finance a new or used car, depending on specific wants and your financial situation. You need to tread carefully because if you don’t meet the re-payment requirement, the lending company simply repossesses the automobile. There are many factors incorporated in the overall decision and final terms of an auto loan.

How Does Auto Loan Amortization Work?

A loan is said to have an amortizing repayment structure, if regular repayments consist of both principal and interest payments. Auto loans have an amortizing schedule since the loan, which is usually granted for a period of 48 to 60 months, is repaid in monthly installments that consist of both principal and interest payments. In other words the amount of money that is repaid, consists of a principal and an interest component. The interest is calculated on the balance remaining at the beginning of each month. The balance at the beginning of each month is obtained, by subtracting the amount paid from the amount due. Hence in the beginning, the interest component of the loan payment will be more than the principal component. As interest payments increase, the balance at the beginning of the month reduces. This in turn results in the principal repayments exceeding the interest payments. Pre-payments are also allowed thus making the entire process very complicated. Thankfully, there are amortization schedules and calculators available to help the borrower determine the structure of the payments. The schedule also helps a person assess the wisdom of seeking a loan. In case the cost of the interest and principal payments are more than the worth of the car, the person may be better off making an outright purchase assuming, he has the money.

Factors Affecting Auto Loan Amortization

Number of Installments: Despite the availability of cheap credit, a person with a bad credit score will not find the amortization schedule in his favor. The reason is, the amount of money to be repaid will depend on the period during which a loan is amortized. A person with a good credit score is typically given a loan for a period of 60 months. In other words, he can repay the principal and interest in 60 payments. A person with a poor credit score is generally expected to repay the same amount in 24 to 48 installments. Fewer installments would mean larger payments per installment. Hence, a poor credit score would require the auto loan to be amortized over a short period of time thus increasing the monthly payment.

The Rate of Interest: The amortization schedule is directly affected by the rate of interest. A higher rate of interest would result in increasing the amount of repayments. In fact, a very high rate of interest may result in the worth of the car being less than the amount of principal and interest payments to be made on the car loan. A good credit score would help a person avail a car loan at a low rate of interest while a bad credit car loan would mean, a higher APR (Annual Percentage Rate).

Ironically, a relatively high down payment on a car loan is expected from a person having a poor credit score. This reduces the auto financing requirement. Since the principal balance in the beginning of the year is less, the amortization schedule becomes favorable! Of course, higher APR and shorter repayment period negate any benefit that could have accrued as a result of higher down payment.

The particularly bad news for DiGiovanni was that GM’s finance arm, GMAC (51 percent of which is actually owned by Chrysler parent Cerberus), was one of the lenders that was most crippled. GMAC had already largely exited lease underwriting and begun restricting loans to only the most credit-worthy customers (with FICO scores of 700 or better) – shutting out more than half of all applicants.

GMAC’s woes have dragged down GM sales recently, but for decades it was a powerful engine of the automaker’s success. When GMAC was founded in 1919, its original mission was not to finance retail new-car sales. It was to lend money to dealers so they could purchase cars from GM’s factories during slow-selling winter months (those being the days before closed cars were commonplace), which allowed them to build up inventory for the warm-weather selling season. This kept GM’s factories humming on a more efficient, year-round cycle.

Soon, though, GMAC expanded its purview to include financing new-car purchases for consumers. But in those early days (the Roaring Twenties), customers first had to be convinced that borrowing for a new car – or buying it “on time,” to use the vernacular of the day – was a good idea.

Odd as it sounds today, back then thrift was seen as a virtue, and debt was something to be avoided. Carmakers, joined by other consumer-goods manufacturers (furniture, sewing machines, pianos), sold the notion of installment plans as wise, convenient, and modern. Once consumer perception began to change, it opened the floodgates to increased sales. Determining how much car one could buy was no longer a question of how much cash you had on hand, but how much you could afford per month.

Before then, the average American family would have to save for five years to purchase a new car, which is why Ford’s ultra-low-priced Model T was such a huge success. Henry Ford, though, disapproved of installment purchasing (although his dealers were happy to arrange financing for customers), and instead Ford in 1923 launched the Ford Weekly Purchasing Plan. But this was essentially just a savings account, in which customers could deposit as little as $5 a week in an attempt to save up for the purchase of a new Ford. The Plan flopped, and Ford wouldn’t launch its own captive finance arm until 1959. Chrysler followed in the 1960s. Meanwhile, by 1925 GMAC was writing almost half of all auto loans, and it helped General Motors power past Ford in sales and gain its dominant position in the automotive marketplace.

Today, just over half of all new vehicles are financed and a further 20 percent are leased; only 27 percent are bought outright with cash. It’s no wonder that a disruption in the credit market can so devastate auto sales. In America, saving for a big-ticket purchase is an idea as old-fashioned as cranking up a Victrola to hear some music. Credit isn’t just the lifeblood of the auto business, it’s the lifeblood of the entire economy.

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

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

Shop money first — Many people make the mistake of shopping for a car, then worrying about how to pay for it. Instead, check into your financing options before you get near a dealership. You have many options — from credit unions to banks to the captive financing arms (GMAC, Ford Credit, etc.) of the automakers themselves. Offers can vary considerably; as with a real estate loan, even a seemingly small difference in the interest rate being offered can cost (or save) you a lot of money over the life of a new car loan. And just as you’d haggle with the salesman over the price of the car itself, you can and should try to negotiate the best deal possible on your financing. Make them earn your business; don’t just give it to them on a silver platter. If GMAC is offering 1.9 percent financing, you may have to forego an additional rebate to get it. Get the specifics and ask your bank/credit union if they can do better.

Know the true cost of what you’re buying (and what you can afford) — There is more to the cost of a new car than the price you pay for the car itself. Things like insurance, property taxes (where applicable), annual fuel costs and so on should always be factored into your purchasing decision — before you commit to buying anything. Insurance payments on a high-performance sports car may be more than you expected. People sometimes get into trouble by focusing on the car payment alone — forgetting about the peripheral costs that come with the purchase of any new car or truck. If you buy “on the edge” — with little cushion left for these unanticipated expenses — you might end up getting a visit from the repo man.

Know your quarry — Before you get near a dealer’s lot, you should have spent some time online getting to know as much about the vehicle you’re thinking of buying as possible. What are the standard and optional engines? Available equipment? The trim levels? What’s the dealer invoice price for the vehicle — and the various options? (Many people forget there’s a big difference between the MSRP “sticker price” and actual dealer cost for individual options as well as for the car itself.)

The more informed you are, the less likely it is you’ll end up with buyer’s remorse — or a bad deal. AOL Autos is one of several excellent resources for this research. Trade publications such as Automotive News and Consumer Reports are also a great resource for in-depth info about any new car on the road. It’s a good idea to read as many new car evaluations of the model you’re considering as possible. These expert reviews may enlighten you about good (and bad) points you might otherwise be unaware of until after you’ve already bought the car.

Check into the available deals — Year-end closeouts, cash back, special financing, etc. Each automaker publishes their current offers on their official web page (for example, General Motors’ web site is www.gm.com). AOL Autos brings all these offers to you alongside other vehicle details to assist you in your shopping. These offers are constantly changing, vary from region to region — and model to model — so it’s important to get the latest, most up-to-date info. Compare what’s being offered by one automaker against the deals (or lack thereof) being offered by a competitor. A little digging could save you thousands before you even get to the dealer’s lot. Also pay attention to the market. Slow-selling models (or final year models of vehicles about to be replaced or updated) are typically the ones dealers are most anxious to get rid of — which means you can usually negotiate a great deal for yourself. On the flip side, avoid shopping for the latest, most trendy and popular models until the buzz has died down a little — unless you don’t mind paying every penny of full MSRP sticker, plus a little extra.

Never focus on the monthly payment — “How much can you afford per month?” is a deceptive shuck and jive used by some car salesmen to get you to stop thinking about the total price of the car by focusing your attention on what appear to be “low” monthly payments. But ultimately, the only figure that matters is the bottom line cost of the car itself. Haggle over that figure — and the monthly payments will take care of themselves.

Worry about your trade-in later — You’re buying a new car; haggling over your trade can be distracting. With the focus on how much you’ll be getting for your old car, it’s easy to lose sight of how much you’re paying for the new one. Haggling over one car is confusing enough; adding another to the mix is never a good idea. Estimate the value of your trade-in online using a service such as KBB brought to you by AOL Autos. This will give you a ballpark number to free your mind while you shop for a new car. The best thing to do is negotiate your best deal on the new car — and once that’s done, bring up the matter of your trade-in.

Always take an extended test drive — Buying a new car or truck without spending at least a few hours behind the wheel is a lot like getting married after that first date. Things you didn’t notice at first may soon come back to haunt you — for example, seats that give you a back ache; or an under-powered engine. Or terrible blind spots. These are things you’ll notice during an extended test drive — and it’s why you should never buy any new car without having spent a t least a couple of hours behind the wheel in a variety of driving environments, such as stop-and-go traffic and highway driving. If the car will be used by family members, they should come along for the ride, too. If everyone’s not happy with the car, odds are you won’t be happy with the car. Most dealers will be happy to let a serious buyer take a test drive. If the dealer won’t allow it, you should think hard and long before buying the car — from that dealer, anyhow.

Interest Rates That Make Credit Card Companies Blush

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

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

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

Fees and Interest Only Payments

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

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

Rolling Over and Repossession

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

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

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

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

Alternatives

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Risks of Shopping around

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

Home Equity Loan

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

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

2) Know Thyself! – You must know the basic criteria for applying for an auto loan. Basic criteria includes that you must be above 18 years of age. Best if you earn at least $2000 a month. Also needed is residence and employment history.

3) Get Approved First – Don’t have make the mistake of looking for a car before being approved. Get approved first then they will give you a voucher of how much you are allowable to loan. Doing this will save you future frustration and disappointments.

4) Down Payments – This varies from lender to lender, and some don’t even require. But typically its about 10% of the price or $1000 whichever is the lower number.

5) Interest Rate – Interest rate is not fixed as most people think, and yes it can be negotiated. If you have a good credit score and good negotiating skills you can have a lower interest rate. But some factors are way out of you’re control such as the state of the economy.

There you have it. We’ll that’s not all, there’s lot of other things you need to know. But what I’ve enumerated are the vital essentials before applying for that auto loan. One thing also is ask advice from an authorized dealer or loan official. They’re there to help you. If there’s something you don’t understand, ask them now or you’ll might face lots of headaches later.

With a secured car loan, the borrower can buy a new car or even a used car of his choice. The money is obtained by him very easily to buy the car. The borrower can make a decision as to what car he wants to buy, and if it is a used car then it should not be more than 5-7 years old. The car may be useful for any purpose, personal or commercial.

For taking up the loan amount, the borrower is required to pledge the car that is being bought as collateral with the lender. At the time of purchase, the title of the car is made in the name of the lender. When the borrower repays the full amount to the lender, then the title of the car is transferred to the borrower’s name.

Before taking up this loan, the borrower needs to decide the car and his next step should be to look for a suitable car dealer. After deciding on one who is giving the borrower a good deal, the borrower should then apply for the loan. This application can be made through the online mode if the borrower does not want to take any hassle and wants to speed up the process of approval. The money is transferred to his account and he can easily pay the price of the car to the dealer. This loan is also available to the borrowers with a bad credit history.

Borrowers can now easily borrow money for their car purchase through a secured car loan. Possessing a car has not remained very difficult now.

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.

Shopping Online

Getting a loan from a regular lender with bad credit can be difficult. However there are many online auto loan lenders willing to consider bad credit applications. As the auto loan business becomes more and more competitive lenders tend to reduce the interest rate they charge even for bad credit loans. This is the reason why it is not strange to find affordable bad credit loans these days. So just search around the net for bad credit loan lenders and request as many loan quotes as possible to compare interest rates and other loan terms. This way you will be able to get the best deal available for you.

Secured Or Unsecured

There are mainly two kind of bad credit auto loans, Secured auto loans and Unsecured auto loans. Secured auto loans require a form of collateral as a guarantee for the lender. This greatly reduces the interest rate charged compared to unsecured auto loans. On the other hand, unsecured auto loans do not require collateral driving away the risk of repossession. In order to decide which of these options is the best for you, you need to ponder the risk involved in the transaction if you use your home as collateral and the money you would save in interests.

Repayment Length

Repayment schedules can last between two to thirty years, it really depends on the borrowers income whether he should choose a shorter or longer repayment program. However, it is always the best to keep it as short as possible as this will save you thousands of dollars in interest. “Pay off the loan as early as possible” is definitely a good advice. If you think you might make additional payments due to having a variable income, make sure there are no prepayment penalties within the loan terms as you may end up paying more just because you want to cancel your loan sooner.

Down Payments

Some lenders require down payments in order to provide finance for the purchase of a car. Nevertheless, there are many lenders out there willing to finance 100% of the vehicle value. Bare in mind though, that if you can raise some money and set it aside for a down payment, you’ll be able to get a much better deal as lenders usually charge lower interest rates when the applicant is capable of making a down payment because it shows that you are able to save money and thus it is more likely that you will be able to repay the loan without any problems. It’s a great way to save thousands of dollars.

1. Compare Rates Among at Least 3 Different Lenders Online – If you have 3 or more loan offers to compare, you are much less likely to take an offer from a lender who is charging excessive interest rates. If you have 3 or more interest rates to compare, you will have a good idea of what the average interest rate is that is being offered to people with credit problems for auto financing.

2. Get Financing Before You Visit a Dealer – If you are going to buy your car from a dealer, make sure you get your financing before you actually visit the an auto dealership. Dealers and lenders often make agreements to work together to charge the borrower a much higher interest rate than they could otherwise get by shopping around. If you have your financing ahead of time, you won’t have to accept the financing they offer you there.

3. Apply With Reputable Lenders – If you are applying with lenders who are established and reputable, you minimize your chances of being taken advantage of.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“The budget is merely a statement of intent.”

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

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

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

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

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

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

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

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

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

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

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

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

“Don’t be naive,” we were told.

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

Hey, life goes on.

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

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

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

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

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

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

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

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

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

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

Never before was picking a car so political.

Ford or Chevy?

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

June 9 (Bloomberg) — Credit Karma Inc., the Web site that offers free credit scores and financial advice to U.S. consumers, is adding a tool today to help users understand the components behind their credit reports.

The free service requires users to register and give personal information such as their Social Security number and date of birth. Users of the “Credit Report Card” will be able to see how their total debt, payment history and other factors may affect their scores.

“Ninety-five percent of consumers don’t know any of these relationships and how they work in regards to a credit report,” said Ken Lin, the chief executive officer and founder of San Francisco-based Credit Karma, in an interview. “If you’ve ever looked at a credit report you’ve got 8 to 12 pages of data that doesn’t correlate to a credit score.”

Lenders use credit scores as a measure of creditworthiness when providing credit cards, mortgages, auto loans and other financial products. The site pulls information from users’ credit reports and compares their numbers for total debt, credit utilization ratio, credit lines open and on-time payment record with profiles from Credit Karma’s 400,000 users, Lin said. Borrowers with higher scores generally receive more favorable terms such as lower interest rates. Credit Karma pays a fee to use credit scores from Chicago-based TransUnion, said Lin.

The score may differ from the FICO score developed by Minneapolis-based FICO, formerly known as Fair Isaac Corp. Atlanta-based Equifax Inc. and Dublin-based Experian also issue credit scores.

The actual credit report is not accessible from Credit Karma. Consumers can obtain a free credit report from the major credit reporting firms at annualcreditreport.com. The credit score is generally not part of the free report.

Information Not Stored

The company said it doesn’t store personal sensitive information on its site such as Social Security numbers, credit card numbers or account numbers. “We only do that for user validation,” Lin said. The company does compile data collected from users for research that isn’t tied to personally identifiable information, according to the company’s Web site.

Closely held Credit Karma’s primary investors are Chris Larsen, the co-founder and chief executive officer of Prosper.com, a peer-to-peer lending Web site, and Mark Lefanowicz, a former president of E-Loan, according to Lin. The company’s revenue comes from advertisements for financial products and services, Lin said.

The credit-card “bill of rights” that U.S. President Barack Obama signed May 22 is intended to protect cardholders from excessive fees and last-minute contract changes. Charge- offs on credit cards, which are loans the banks don’t expect to be repaid, were 9.01 percent on average in April compared with 5.24 percent a year earlier, a 72 percent jump, according to data compiled by Bloomberg. “The average consumer has $8,000 to $9,000 in debt with their credit cards,” Lin said. “People on the margin are in trouble.”

“We’re doing the right thing for consumers,” Lin said. “We’re giving them access.”

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

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

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

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

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

The OESA and the Motor & Equipment Manufacturers Association will meet with the auto task force on Wednesday, and U.S. House and Senate members later in the week, according to the report. ]]> http://pierremoneymartblogs.com/index.php/2009/06/04/auto-suppliers-to-seek-new-government-aid/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/06/03/us-auto-suppliers-to-seek-loan-guarantees-this-week/ http://pierremoneymartblogs.com/index.php/2009/06/03/us-auto-suppliers-to-seek-loan-guarantees-this-week/#comments Wed, 03 Jun 2009 18:42:37 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=863 On the back of waning demand, the nation’s auto parts suppliers will ask President Obama’s auto task force this week to back between $8 billion and $10 billion in loan guarantees. U.S.-based car parts suppliers have already received $5 billion in federal aid, but are seeking loan guarantees to ensure production can continue uninterrupted.

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.

In recent weeks, at least two dealerships with domestic cars, James-Rivard Buick Pontiac GMC near Brandon and Heritage Ford in Wesley Chapel, have adopted “Buy American” themes in their billboards and marquee signs. A third dealership, Bill Currie Ford Lincoln Mercury in Tampa, began a heavy Buy American campaign on billboards and radio spots two years ago. It has since moved on to a different ad message.

James-Rivard may be going to the greatest lengths, at least temporarily. In mid-May, the dealership took out four or five billboards primarily in eastern Hillsborough County citing a comment that Obama made in an April 30 press conference on Chrysler’s bankruptcy. The billboard campaign runs for a month.

“If you are considering buying a car, I hope it will be an American car,” the billboards read, quoting the president.

On a subtler note, Heritage Ford has a small message on its marquee along State Road 54 in Wesley Chapel, encouraging people to buy a Ford and “Invest in America.”

Heritage Ford general manager Rich Dearborn said the company put up the message in advance of Memorial Day, along with red, white and blue balloons. It hasn’t gotten around to taking it down yet, he said.

Heritage Ford is part of a dealership group that also owns an import dealership, Stadium Toyota, according to state corporation records. Dearborn said believes in supporting American brands, although he was only speaking personally and not on behalf of the ownership group.

“There’s so much to it,” Dearborn said, speaking of patriotic appeal. “Anyone who sees what’s going on in the world, it’s a crazy time.”

Two years ago, when Bill Currie Ford Lincoln Mercury began its “Buy American”-themed billboard and radio campaign, it took some heat from competing dealers. Among the criticisms were that many cars produced by General Motors, Ford and Chrysler are made in foreign countries, such as Mexico, or are made using foreign parts.

At the time, a former general manager at Heritage Ford, Jason Brunner, told the Tribune such an appeal to patriotism amounted to “guilt-trip advertising.”

Roger Rivard, president of James-Rivard, said his billboards are subtler than that.

“I’m just saying consider it,” Rivard said.

Wherever it gets its cars and parts, GM does employ far more U.S. citizens than foreign carmakers do. And the domestic companies’ profits stay at home, helping to pay American wages.

Rivard isn’t expecting people to rush in and buy a Buick, Pontiac or GMC after seeing his billboards. But he is hoping to plant a seed in their minds. H3e said one of his customers is considering buying a Pontiac and trading in his Toyota Corolla, in part because he is embarrassed driving it with all of Detroit’s problems.

“Having been from Detroit previously, I can tell you how important the auto industry and related technology is to the country,” Rivard said.

Danny Lewis, director of community relations for Bill Currie, said his dealership has been touting Ford Motor Credit’s ability to make loans in recent ads rather than making patriotic appeals.

Noting the new Buy American pitches by other dealers, he said, “I don’t want to criticize them, but where have you guys been?”

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.

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

Biggest Hidden Car Loan Danger: The Inherent Money Pit

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

Solution: spend as little on your car as possible.

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

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

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

Hidden Car Loans Danger: Dangerously High Monthly Payments

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

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

= ____ Maximum monthly loan payment.

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

Final Hidden Auto Loan Danger: Unnecessarily High Rates

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

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

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

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

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

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

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

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

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

Q: Is it possible to get an auto loan even though I filed for bankruptcy?

A: Yes, it is possible to get an auto loan with a bankruptcy still showing on your credit report. As long as a bankruptcy has been discharged and your credit is ok since the bankruptcy, you should have no problem getting auto loans.

Q: Will I be limited to older model vehicles just because my credit is bad?

A: Certainly not! You will be suprised at the choices you will have, including late model, dependable cars, trucks, vans, and SUVs.

Q: Can I buy a car from an individual and get the loan from you?

A: At this time, we are not able to offer this service. You can choose a vehicle from one of our nationwide dealers.

Q: How much money will I need for a down payment?

A: Because everyone’s situation is different, and there are many things that factor into figuring a down payment amount, it is impossible for us to give you a definite amount. If you think coming up with a down payment will be difficult for you, ask about the down payment options that are available to you.

Q: I have no credit and would like to buy my first vehicle; can you help me?

A: Of course! We welcome first time buyers,and will ensure that you drive away in a nice, affordable vehicle.

Q: I would rather apply over the phone, can I do this?

A: We do not accept phone applications because of safety concerns. Applying on our secure server is a much safer way to apply.

Q: Can I get a bad credit auto loan with 0% interest?

A: To be honest, probably not. 0% interest rates are often reserved for people who have excellent credit. If you are a first time buyer, or a buyer who may have credit problems, the interest rates you get vary from state to state and fluctuate daily. If you start out paying a higher interest rate, you can always refinance your auto loan in a year or so, as long as you have shown that you are creditworthy.

Q: Is you dealer network limited to any one state or are you a nationwide company?

A: We serve all 50 states and Washington D.C.

The national average interest rate for a bank’s new-car loan is 7.45 percent for a 48-month term; used cars are 7.87 percent for a 36-month loan average, according to PierreMoneyMart.com.

A loan’s interest rate depends on many variables, including your personal credit history, lender (bank or credit union), loan term length (36 months, 48 months, 60 months, etc.) and the car itself (new or used). For example, a bank’s 36-month new-car loan has an average interest rate of 7.19 percent; a 60-month loan is 7.64 percent. In 2008, the national average for credit union interest rates was 5.6 percent and 5.9 percent for new and used cars, respectively, for 48-month loans.

Obviously, 11.9 percent is higher than these listed national averages, so you should determine why that is and shop around for a better rate. You can find more information about shopping for the best interest rates in the PierreMoneyMart.com article, “Best Interest Rates: How to Get Them.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- Ford’s initial vehicle quality improved 5 percent over last year.

- Ford customer satisfaction continues to improve and is equal to Toyota and Honda.

- Ford has five segment leaders: Ford Mustang, Taurus, Taurus X and Ranger, and Mercury Milan.

DEARBORN, Mich., April 17 /PRNewswire-FirstCall/ — Ford Motor Company (NYSE: F), continuing its rapid quality improvement, surpassed Honda in initial vehicle quality for the first time and reached new levels of customer satisfaction with vehicle quality, a new survey shows.

Ford is also statistically tied with Toyota at the top of the industry when it comes to initial vehicle quality, according to the 2009 U.S. Global Quality Research System (GQRS) survey conducted quarterly for Ford by RDA Group of Bloomfield Hills, Mich.

“This is truly a significant accomplishment for us,” said Bennie Fowler, Ford group vice president, Global Quality. “Honda and Toyota have claimed bragging rights for years, but now we are seeing our hard work pay off. It’s evident in study after study.”

The latest GQRS survey measured 2009 model year vehicle initial quality in two categories: the number of “things gone wrong,” and customer satisfaction with vehicle quality in the first three months of ownership.

In the first quarter of 2009, Ford, Lincoln and Mercury vehicles saw things gone wrong fall by 5 percent to 1,228 per 1,000 vehicles, significantly better than Honda’s 1,422 things gone wrong per 1,000 vehicles and statistically equal to Toyota’s 1,150.

In addition, the survey shows that Ford Lincoln Mercury improved two percentage points to 79 percent in customer satisfaction with vehicle quality, which puts Ford’s domestic brands in a tie with Toyota and Honda for industry leadership.

“Ford’s commitment to quality is really paying off as they continue to rival Honda and Toyota on both initial quality and customer satisfaction with the quality,” said Donald Pietrowski, president, RDA Group.

The following models led their respective segments in the survey:

• Ford Mustang – initial quality and customer satisfaction for sports cars
• Ford Taurus – initial quality for large cars
• Ford Taurus X – initial quality for crossover utilities
• Mercury Milan – initial quality for midsize cars
• Ford Ranger – initial quality for compact pickups

The new 2009 Ford F-150 recorded quality levels that equate to less than one problem per vehicle, as did the Taurus, Taurus X, Fusion, Milan, and Edge.

“We are energized by the continuous improvement we are seeing on both initial vehicle quality and customer satisfaction,” said Fowler. “This survey validates the hard work and dedication to quality from Ford employees, suppliers and dealers. We will keep the momentum going as we strive to become the clear global quality leader.”

The GQRS study is conducted on a quarterly basis with scores assessed from survey responses collected from owners of vehicles purchased within specific short-term time frames.

New vehicle owners are asked to report any defects or issues as well as rate their satisfaction with vehicle quality on a scale of 1 to 10 across an array of vehicle systems and features.

Changan Ford Mazda, a tie-up with Chongqing Changan Auto Co and Mazda Motor sold 25,882 cars in April, up from 19,462 cars a year earlier, Changan Auto said in a statement.

Sales came to 82,957 vehicles in the first four months, up from 81,465 units in the same period last year, it said.

General Motors’ China sales surged 50 percent to 151,084 units in April, a monthly record, helped in part by its Wuling brand mini vans and pickup trucks made at a local venture, it said earlier this week.

China overtook the United States as the world’s largest auto market this year and year-on-year sales growth in March rebounded to more than 10 percent as government stimulus measures helped fuel a recovery in demand.

Jiangling Motors Corp Ltd, a commercial vehicle maker partly owned by Ford, sold 10,568 vehicles, down 5.7 percent from a year earlier, with sales for the first four months down 5.3 percent to 35,980 units, the statement said.

Overall sales of Changan Auto were 117,846 vehicles in April, up 51 percent from a year earlier. January to April sales rose 22 percent to 415,594 units, it added.

Bad Credit Auto Loans

Identity theft is a crime involving illegal usage of another individual’s identity.

According to the non-profit Identity Theft Resource Center, identity theft is sub-divided into four categories:

* Financial Identity Theft (using another’s name and SSN to obtain goods and services)
* Criminal Identity Theft (posing as another when apprehended for a crime)
* Identity Cloning (using another’s information to assume his or her identity in daily life)
* Business/Commercial Identity Theft (using another’s business name to obtain credit)

Related crimes include illegal immigration, terrorism and espionage. Identity theft may also be a means of blackmail. There are also cases of identity cloning to attack payment systems, such as obtaining medical treatment.

A classic example of consumer-dependent financial crime occurs when Bob obtains a loan from a financial institution impersonating Peter. Bob uses Peter’s personal identifiers that he has somehow acquired. These personal identifiers conform with the data retained on Peter by national credit-rating services. For Bob, these crimes are non self-revealing, although authorities can track Bob down unless he conceals his mailing address somehow. With consumers being credit-dependent, the onus shifts to them to re-establish their credit-worthiness with the lending institutions and credit-rating services.

Another example: a criminal legally acquires personal identifiers, and then clones someone to them for concealment from authorities. Unlike credit-dependent financial crimes, these crimes are non self-revealing, continuing for an indeterminate amount of time without being detected.

]]> http://pierremoneymartblogs.com/index.php/2009/05/11/what-is-%e2%80%9cidentity-theft%e2%80%9d/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/10/identity-theft-techniques-government-response-2/ http://pierremoneymartblogs.com/index.php/2009/05/10/identity-theft-techniques-government-response-2/#comments Sun, 10 May 2009 22:59:26 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=816

Techniques for obtaining information

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

Legal response

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Identity theft is when a person uses your individual information in a malicious way. They can find out your name, Social Security number, credit card, mother’s maiden name, email address, mailing address and much more. Once they have this information, it is a race against time as they buy cars, electronics, open new credit cards and much more with your information. Sometimes, you won’t find out about the financial issues until years after it has occurred. ]]> http://pierremoneymartblogs.com/index.php/2009/05/08/although-there-is-no-universal-definition-simply-stated-it-occurs-when-someone-fraudulently-assumes-another%e2%80%99s-identity-in-the-physical-world-a-person%e2%80%99s-identity-is-concrete-and-i/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/07/what-is-%e2%80%9cexperian%e2%80%9d/ http://pierremoneymartblogs.com/index.php/2009/05/07/what-is-%e2%80%9cexperian%e2%80%9d/#comments Thu, 07 May 2009 22:57:15 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=808

Experian is a global credit information group, with operations in over 30 countries around the world. The company’s largest operation, Experian North America, is a consumer credit reporting agency, considered one of the big three US credit agencies along with Equifax and TransUnion. As well as the US, Experian has operations in most European countries, Argentina, Brazil, Chile, South Africa, China, Japan and Australia.

Experian’s principal lines of business are Credit Services, Marketing Solutions, Decision Analytics and Interactive Services. It collects information on consumers, businesses, motor vehicles and insurance, along with lifestyle data from a range of on- and offline surveys. Access to the much of the information Experian holds is subject to regulatory control, depending on the regulations in each country it operates.

Experian employs approximately 13,500 people in 36 countries and as of 2007 had clients in more than 60 countries. Its corporate headquarters is in Dublin, Ireland with operational headquarters in Nottingham, England and Costa Mesa, California, USA. According to its corporate site, Experian’s annual sales exceed $3.4 billion USD (£1.8 billion) and it has net assets of $2.107 billion.

Experian was demerged from the British company GUS plc in October 2006. The new company, Experian Group Ltd, is listed on the London Stock Exchange under the abbreviation EXPN The company is part of the FTSE 100 Index.

Experian acquired its US credit reporting business from TRW in 1995, and its databases contain credit information on 215 million consumers in the United States. In addition to providing credit reports, Experian maintains a database of over 450 million vehicles containing title and registration data from North American governments and provides address information for more than 20 billion promotional mail pieces to more than 100 million households every year.

Like the other major credit reporting bureaus, Experian is chiefly regulated in the United States by the Fair Credit Reporting Act (FCRA). The Fair and Accurate Credit Transactions Act, signed into law in 2003, amended the FCRA to require the credit reporting companies to provide consumers with one free copy of their credit report per 12 month period. Like its main competitors, TransUnion and Equifax, Experian markets credit reports directly to consumers. Experian heavily markets its for-profit credit reporting service, FreeCreditReport.com, and all three agencies have been criticized and even sued for selling credit reports that can be obtained at no cost.

Experian handles its credit disputes in its National Consumer Assistance Center (NCAC) in Allen, Texas. It is frequently sued for violating the Federal Fair Credit Reporting Act (FCRA) and uses the large national law firm of Jones Day to defend these lawsuits. Experian’s litigation and settlement decisions are made by its in-house attorneys based in California. You may contact the NCAC once you have a copy of your personal credit report by calling the number that is located on the personal credit report itself. Experian announced that it would be opening a second NCAC in Santiago, Chile during the summer of 2007. Many divisions of the Allen NCAC will be relocated to the Chile location.

Experian provides regional data at nationalscoreindex.com which shows average credit scores by region and zipcode as well as various other measures of household debt. The site does not indicate if it uses a FICO based credit score, the new VantageScore, or some other scoring model.

Credit bureaus collect and collate personal financial data on individuals and businesses, from data furnishers with which the bureaus have a relationship. Data furnishers are businesses, utilities, debt collection agencies, public institutions and the courts (i.e. public records) that a consumer or business has had a relationship or experience with. Data furnishers report the experience with the consumer or business to the credit bureau.

A major credit card company, wants to promote a new credit card. They contact the credit bureaus and deliver a profile of the kind of person they think will be interested in the new card. The profile might include things like personal income, region or state the person lives in, number of credit cards, credit score, etc. The credit bureau then searches through their records looking for anyone that matches that profile. If you fit the profile, an offer is mailed to you or someone calls you on the phone at dinner time. It’s one of the ways the credit bureaus make money.

A good credit rating is very important. Businesses and financial institutions inspect your credit history when they evaluate your applications for credit, insurance, employment, and even leases. Based on your credit payment history, companies can choose to grant or deny you credit provided you receive fair and equal treatment. ]]> http://pierremoneymartblogs.com/index.php/2009/05/06/credit-bureau-3/feed/ 0 http://pierremoneymartblogs.com/index.php/2009/05/05/bad-credit-car-loans/ http://pierremoneymartblogs.com/index.php/2009/05/05/bad-credit-car-loans/#comments Wed, 06 May 2009 00:56:20 +0000 Kyle Sorenson http://pierremoneymartblogs.com/?p=804

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

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

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

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

One of the best ways to qualify for a loan is to plan in advance. Stop making purchases with credit cards and pay off remaining balances before applying for a loan. This will help boost your credit rating and show lenders that you are responsible with your money. Making purchases on your credit cards before the loan has been processed may hurt your chances of receiving the loan. Try to hold off using credit cards until after you bring the car home. Even if you have missed a payment or two in the past, if you have consistently paid your bills for the past year or so, you should qualify for a car loan.

The type of car you want to buy will matter to lenders. Try to find cars that are within your price range. When budgeting for your new car, include monthly insurance payments. This will give you a good idea of how much you can spend without using up all of your available income. Many lenders will not grant loans to those who will use 60% or more of their monthly income on the car loan, living expenses, and other bills. Be sure to stay within your range and try to save a little extra money to use as a down payment. When lenders see that you are willing to put up your own money, they will feel more at ease about granting you a loan.

After you have found a car within your price range, and saved up money to use as a down payment, you will be ready to find a lender. There are many options for you to choose from including banks, credit unions, auto finance departments, and online lenders. You should start with your local bank because they will already know about your financial situation and more apt to working with customers that bank with them. Banks usually offer the lowest interest rates as well. If you belong to a credit union, then you should apply for a loan through them as credit unions can also offer low interest rates.

If you have already tried a bank, but have had little success, you can try the finance department at the dealership where you want to buy the car. They usually work with many lending institutions and will be able to match you with a lender that will grant you a loan. Keep in mind that you may have to pay a higher interest rate when going through the finance department, but it may be worth it depending on how much you need a car.

If you do not want to use the finance department at the dealership, shop around online. You will be surprised to learn that there are many lenders online that want your business. They are competing with other online lenders and traditional lenders as well. This means that they will be able to offer you a better deal even if your credit isn’t that good. Make sure that you research the lender before you contact them to find out if they are legitimate or not. You should also read all contracts before signing them in case there are hidden fees you were not told about.

Depending on your credit history, the interest rate you will be offered may be higher than you expected. If you can put down a larger down payment or pay off the car sooner than your original loan terms, this rate will go down. You should weigh all of your options when it comes to loan terms. If you cannot pay off the car in two or three years, do not risk it. Take out a loan for five or seven years instead. This will cost you more in interest, but at least you will be able to make payments each month.

Qualifying for an auto loan may require you to research your options and apply for several loans before being accepted. Planning ahead of time by getting your finances in order and finding a car that is in your price range will increase your chances. If you are buying a car for the first time and have little or no credit, you may also run into problems along the way. Being patient and trying different lenders will pay off in the end.

Click here to download

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

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

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

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

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

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

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

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

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

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

Click here to download

Click here to download

You wanted an auto loan but the bank rejected your application. Of course, you wanted to know why you were being denied and with a sinking heart you hear that your credit score is so low that you are defined as a subprime customer. Of course, you will ask again what this subprime label is. Subprime means that you are a borrower with bad credit. This means that your credit score is below the score acceptable to the lending institution. The bank computes the credit score using various categories, which are payment history, outstanding balances, and length of credit history, new credit and types of credit used.

Not the end of the world

Being considered a bad credit customer is not the end of the world. You can still obtain an auto loan by applying for a bad credit auto loan. But here is the catch: a bad credit auto loan always means you will get higher interest rates. Luckily, there are many lenders who are willing to approve an auto loan with bad credit. Once you find one of these lenders, the next step is to negotiate the best interest rates that you can get.

First, evaluate your credit report and look for any errors. There is always a possibility that your credit report has a lower score than it should. If you find any errors, contact your credit offices and request for them to correct any errors.

Second, your credit report will tell you your credit score. If not, there are credit bureaus that can give you that information online. Knowing your score and that you have bad credit will give you a sense of where you stand if you get an auto loan.

Third, never apply for auto loans from a car dealership. They always have cuts on these deals and are therefore not giving you the best deal. Try to find your own bank or lender before going to a car dealer.

Fourth, look around at different banks, credit unions and online auto loan lenders. The rates vary from one to another. The more choices you have, the greater the chances that you will get a better rate. If you have a checking account, it might be better to ask your bank for a loan. Many banks tend to give credits to those who are regular clients.

The credit union is also a possible alternative. Before, credit unions would only give auto loans to members but this has changed in the past years. Non-members are now included for consideration.

Fifth, start immediately improving your credit history to move out of the bad credit category. Pay your bills on time and don’t overextend your credit. It usually takes two years to be able to improve the state of your credit so be patient.

A bad credit auto loan is a good choice for people with less than perfect credit. Consumers should take steps to know their credit score and work to improve their credit situation through patience and hard work.

What is Auto Financing Bad Credit? [ Auto Financing Bad Credit ]

For those that have less than perfect credit scores, auto financing bad credit is a viable option. Traditional financial institutions as well as credit unions for the benefit of the customers extend the loans for auto financing bad credit. You can also obtain the auto financing bad credit from a number of car dealers and manufacturers. If you have faced bankruptcy, vehicle repossession or foreclosures in the previous year, you could still get a loan for auto financing bad credit. … more

Getting the Best Deal on a Bad Credit Auto Loan [ Bad Credit Auto Loans ]

You wanted an auto loan but the bank rejected your application. Of course, you wanted to know why you were being denied and with a sinking heart you hear that your credit score is so low that you are defined as a subprime customer. Of course, you will ask again what this subprime label is. Subprime means that you are a borrower with bad credit. This means that your credit score is below the score acceptable to the lending institution. The bank computes the credit score using various categories, which are payment history, outstanding balances, and length of credit history, new credit and types of credit used. … more

Tips to Drive Away with Low Interest Rate Auto Loans [ Auto Loans ]

Are you tired of using public transportation? Or are you tired of your old car? You want a new car but you just don’t have enough money to buy one. Further, you don’t see yourself saving money for a car until you’re too old to enjoy it. The best alternative then is to apply for an auto loan. … more

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

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

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

You stretch and look each time to go by the car lot. You may even know exactly what you want.

It can be enticing, especially the new car smell.

But buying a new car goes much further than simply picking out all the options. If you want to get the most vehicle for your money, you will do a little homework. There are some essential steps that will help you avoid being fleeced. You know the stereotype of the car salesman. If you are well informed, she or he won’t be any problem.

Think of this as an exploration. You map out a game plan that gives you the upper hand. Knowing what you want gives you a huge advantage in the buying process.

This guide will help you in selecting, financing, purchasing and insuring your new vehicle. It may seem like a little work, but it may be the difference between getting the car you want and settling for a different one. You will find that the process is easy, and in the end it saves you money, time and aggravation.

Bad credit or no credit does not have to keep you from getting an auto loan anymore. Many companies specialize in helping people with bad credit get the car they have their hearts set on. There are still some general guidelines that many lenders follow, but keep in mind that each company is different so look around for the auto loan that will suit your needs best.

Here is some of the basic criterion that you must meet to be granted an auto loan:

Proof of income is required. In most cases the minimum required monthly income is $1,500 per month or $8.66 per hour with full time employment.

Applicants with no bureau score or rating must have been working at least 1 year for their current employer. Auto lenders look more favorably on applicants that have been working for their current employer for 2 years.

If you have a repossessions with a deficiency balance that is less than one year old and not included in bankruptcy, a cash down payment may be required for you to qualify.

Direct lenders that offer car loans have much more stringent underwriting criteria than the indirect car loan lenders available to some licensed auto dealers. If you’ve have bad credit and have been rejected for an auto loan in the past, chances are you were dealing with a direct lender.

Auto loans are just like any other form of credit. It is never free of charge. Remember that how much creditors will charge you for their services differ, so be sure to check out the competition. And always find out their rates before you agree to borrow from them. It is imperative that you review the terms of your auto loan before you enter into an agreement with the lender.

You will also want to take into account the amount of time you will be making payments. For example, you may get lower monthly payment rates over 3 years than over 2. However, the total finance charges over time are higher over a longer term.

There is nothing wrong with using an auto loan to purchase a car, just make sure that you are informed about your choices of lender. The right choice will make all the difference when buying your car or truck.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

If you need less than $200…

Redeem credit card points.

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

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

Ask a social-service group.

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

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

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

Sell your stuff.

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

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

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

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

If you need $200 to $1,000…

Ask friends or family.

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

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

Ask your employer.

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

Ask a stranger.

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

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

If you need more than $1,000…

Go to your bank or credit union.

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

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

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

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

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

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

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

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

Take advantage of peer-to-peer lending.

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

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

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

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

If you need more every week…

Get a second job.

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

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

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

Boost your take-home pay.

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

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

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

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

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

Our reports will help you learn more about:

* What goes into your credit score.

* Where to find free copies of your credit reports.

* How to get your credit score.

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

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

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

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

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

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

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

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

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

Smart move 3. Use every credit card you have.

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

Smart move 4. Pay down credit card balances.

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

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

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

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

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

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

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

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

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

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

Will all of this really work?

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

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

Honda Fit

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

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

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

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

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

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

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

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

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

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

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

That’s what we’d buy.

Nissan Versa S

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

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

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

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

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

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

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

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

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

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

Scion xD

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

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

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

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

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

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

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

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

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

Until recently, your only option was to return the car to your leasing company — if it would let you — and pay a big penalty.

But now it’s possible to transfer your lease to another owner using a Web site such as LeaseTrader.com or Swapalease.com.

Just sign up, create an ad that includes photos of your car and the terms of your lease, and wait for consumers looking for a car like yours to respond.

Posting a car on one of these sites usually costs $50 to $100. If someone agrees to buy your lease, there’s an additional closing fee — $95 for Swapalease.com and $250 for LeaseTrader.

Under the Swapalease system, the seller and buyer do most of the legwork in terms of getting the lease transferred. LeaseTrader.com facilitates the exchange of paperwork and other tasks, resulting in the higher fee.

The major finance companies initially were reluctant to allow lease trading. But most are now on board and taking advantage of the system by charging transfer fees that range from $75 to $595.

Fortunately, it’s the buyer, not the seller, who usually has to pay that.

If a lease transfer sounds like something that could help you, here’s what to do.

Start by checking the list of leasing company fees and policies posted on these pages at Swapalease.com and LeaseTrader.com.

You’ll need the answers to these three questions:

* Will your leasing company permit a transfer?

* How much will it charge?

* Are there any special restrictions that might affect you? (Some leasing companies, for example, won’t allow transfers within the last year of the contract.)

* Does the transfer include a contingent liability clause? (On Swapalease.com, look for the question that says: “Does Original Lessee Remain Liable?”)

Danger! Danger!: Don’t transfer your lease if it contains such a clause.

It means the lender will continue to hold you liable for the payments and the condition of the car if the new lessee defaults. You could even be on the hook for the purchase price if your buyer fails to turn the car in when the contract expires.

Some major leasing companies, including GMAC Financial Services, Toyota Financial Services, Wells Fargo Bank, US Bancorp and Mercedes-Benz Financial, don’t impose contingent liability on their customers.

Others, including Chrysler Financial and Nissan Motor Acceptance Corp., make contingent liability a standard part of any transfer, at least as of early 2008.

But policies can change, so check with your leasing company before deciding against a lease transfer. You also can make a written request for that liability to be dropped, and sometimes the lender will agree to do so.

If it refuses, the only way to protect yourself is through an insurance policy such as Swapalease.com’s “Lease Transfer Peace of Mind” plan. But there’s a long list of potential charges those policies don’t cover, they’re very new, we don’t know how well they work, and the premiums add to your cost.

So, in our opinion, contingent liability is a deal breaker. If you can’t avoid it, don’t do it.

If you’re still good to go, the next step is checking out the leases being offered on comparable models.

If your payments are among the most expensive, you’ve used most of your miles or are especially eager to unload your lease, you may need to offer an incentive to attract a buyer.

You can give the buyer cash to offset a portion of the future payments or agree to pay the lender’s fee or the cost of transporting the car to its new owner.

Now you’re ready to total up all the costs and decide whether transferring your lease makes financial sense.

If it does, here’s everything you’ll need to post your car or truck on one of the lease trading sites:

* Contact information. Land line and cell phone numbers, e-mail address and home address.

* Vehicle information. The more specific the information you provide, the better chance you have of getting a buyer interested in your car. Include basic information such as year, make, model and style as well as the car’s features and current mileage.

* Lease details. The date the lease expires, the monthly payment, the number of miles you’re allowed to drive, the number of miles on the car, the name of the leasing company and the end-of-lease buyout price and excess mileage fee.

* Pictures. Take a number of shots from different angles of the inside and the outside of the car to hook potential buyers. Get the car washed and clean out the inside so you can showcase it at its best.

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.

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.

But look how quickly the savings add up with a smaller car or SUV:

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.

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

Low Interest Auto Loans: Don’t Stop with Dealerships

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

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

Bad Credit? Savings may be Possible

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

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

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

Auto Loans for People with Bad Credit?

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

Balancing Risk with Recovery

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

The scenario grows worse as auto sales fall, production is cut, and employees face layoffs. GM and Chrysler have requested another $21.6 billion to see them through this crisis, and Ford, which has not yet taken any bailout funds, has asked for a line of credit for approximately $9 billion.

Auto Loans and Other Incentives

The (formerly) Big Three take some of their bailout/line of credit funds and use them to provide potential car buyers with attractive financing options and buyer incentives. They’re going to have to go beyond zero percent auto loan. They’re going to have to go beyond auto loan incentives, and agressively advertise the availability of auto loans for people with not-the best credit. After all, they buy cars too. Some of the obstacles families encounter when buying a new car are registration and insurance fees. Using some of the bailout/line of credit funds to offer registration and insurance incentives along with more accessible financing may convince Americans to support the spine of American industry by buying new cars. Dealer promotions will have to do more than turn consumers’ heads to get them to visit their lots.

Although the government may provide consumers with tax incentives for buying new American cars, we’re still a culture driven by instant gratification. A consumer tax incentive may help, but US auto makers must convince consumers that the time to buy a new car is now, and that compelling financial incentives are readily available.

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

Bad Credit Auto Loan Opportunities Essential for Consumers

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

Bad Credit: Understanding Credit Scores

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

Auto Loan Shopping Technique: Comparing Rates and Terms

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

About Author:

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

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

Interest Rate Know-How

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

Lengthy Loans

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

Tempting Incentives

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

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

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

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

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

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

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

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

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

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

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

“The American Recovery and Reinvestment Act of 2009” was signed into law effective February 17, 2009.  The law includes a new customer tax deduction for State and local sales and excise taxes paid to purchase a motor vehicle during 2009.

• Provides consumers a new tax deduction on their 2009 Federal income taxes for “qualified motor vehicle taxes”.
• Qualified motor vehicle taxes include any State or local sales or excise tax imposed on the purchase of a qualified motor vehicle.
• Qualified motor vehicles include passenger automobiles or light trucks with a weight rating of not more than 8,500 pounds.
• Applies to NEW vehicles only.
• Deduction allowed for non-itemizers.
• Limitation on Vehicle Price: limited to the tax on up to $49,500 of the purchase price of a qualified motor vehicle.
• Income Limitation: Phased out for taxpayers with modified adjusted gross income between $125,000 and $135,000 ($250,000 and $260,000 in the case of joint return).

Effective Date: Purchases on or after February 17, 2009, and before January 1, 2010.

Customers with questions related to their particular tax situation should be advised to consult with their financial advisor.

In a recent application for a U.S. Department of Energy (DOE) grant, two NU operating companies, The Connecticut Light & Power Company (CL&P) and Western Massachusetts Electric Company (WMECO), are proposing to build a network of 575 charging stations over the next two years. The plan calls for a geographically diverse combination of home-based, workplace and publicly-accessible sites in the utilities’ existing service territories. The companies are collaborating with New England-based Environment Northeast, the Greater New Haven Clean Cities Coalition, and the Town of West Hartford, Conn., on key aspects of the project including location selection and results monitoring.

“We see extraordinary potential in electric transportation as one of the tools to help meet the environmental and energy policy objectives of our regional and national leaders,” said James B. Robb, NU senior vice president of enterprise planning and development. “As the next generation of vehicles gets introduced, likely late in 2010, we want to be sure that New England is among the first markets. The development of a charging infrastructure is important, both to support the adoption of these exciting new vehicles and to allow us to assess the impact on our electric distribution system.”

“For sustainable technologies such as alternative fuel vehicles to really take hold and deliver significant benefits, a collaborative effort between policy makers, businesses and other stakeholders is required,” said State Representative Vickie Nardello, House chair for the Connecticut General Assembly’s Energy & Technology Committee. “NU’s program is a necessary catalyst and part of the forward-thinking solutions we must embrace for a viable and sustainable future.”

“Plug-in hybrids and other electric vehicles are going to be important components of our green energy future, but they won’t work without a network of charging stations. I applaud Northeast Utilities for looking into the future and making this initial proposal to meet that need in their service territories,” said Philip Giudice, Commissioner of the Massachusetts Department of Energy Resources.

NU has been working with the Electric Power and Research Institute (EPRI) in a collaborative effort to understand the utility impacts of plug-in electric vehicles. As part of NU’s strategies for carbon reduction and sustainability, the company has several other forward-looking initiatives under way. In particular, the EV charging network complements the Smart Grid pilots at CL&P and WMECO, and is consistent with the planned expansion of company energy efficiency programs. “In addition, our transmission development program, which will facilitate the integration of low-carbon energy into the New England power supply, provides even more leverage to the environmental benefits of electric vehicles,” noted Robb.

The DOE’s decision is expected in June 2009. NU’s application requested federal funding of $693,750 which is fifty percent of the project’s total estimated cost of $1,387,500. “This is an initial proposal and we will be developing more specifics of the program over the summer, including substantial outreach to various stakeholders to help us maximize the impact of the grant,” Robb said. “We are also examining opportunities to participate with other stakeholders in additional federal grant opportunities to advance the electrification of transportation.”

To view the multimedia assets associated with this release, please click http://news.prnewswire.com/viewrelease.aspx?STORY=MTY=

Having passed this first wave of judging, these teams now move one step closer to competing for their share of a $10 million prize purse that will be awarded to teams that win a rigorous long distance stage competition and can exceed 100 MPG equivalent fuel economy (MPGe).

The teams, which collectively represent 136 vehicle entries with 14 different fuel sources, include diverse groups from 25 U.S. states and 11 countries. Established automakers, emerging start-ups, universities and inventors are among those represented. Six of the Registered Teams remain confidential.

In the coming months, Registered Teams will undergo Design Judging based on a detailed Data Submission package, which will provide information on their vehicle’s features, production capability, safety and business plans. Those that pass Design Judging will move into the performance testing phase and partake in a series of competition events that will begin as early as May 2010. Winners will be announced in 2010.

The competition start date, the number of venues, and the geographic distribution of venues will be determined prior to July 2009.

“We are thrilled with the wide variety of teams and technologies from around the world that are joining us in this competition,” said Dr. Peter H. Diamandis, Chairman and CEO, The X PRIZE Foundation. Being accepted as a Registered Team is a major milestone. This is also an exciting step for the Foundation as we move closer to our goal of inspiring a new generation of real, clean, safe and super fuel-efficient vehicles.”

“The level of American innovation and entrepreneurship we’re seeing in the Automotive X PRIZE is encouraging,” said Senator Jeff Bingaman, Chairman of the Senate Energy Committee. “It’s also a positive response to many of the challenges confronting the U.S. auto industry. I applaud these teams for the important work they’re doing for our nation’s energy future.”

Winners will be selected from two classes in the Competition Division — Mainstream and Alternative. A complete list of Registered Teams, listed by the category in which they will compete and their proposed fuel type will be available on April 8 at www.progressiveautoxprize.org.

Earlier this year, the competition announced details of a Demonstration Division designed specifically for large, established automobile manufacturers to showcase their latest fuel efficient vehicles. Entrance into this Division will remain open until the summer.

About the Progressive Automotive X PRIZE Competition:

The goal of the Progressive Automotive X PRIZE is to inspire a new generation of viable, super-efficient vehicles to offer consumers more choices and make their lives better as a result. The competition will place a major focus on affordability, safety, and the environment. It is about developing real, production-capable cars that consumers want to buy, not science projects or concept cars. For more information about the Progressive Automotive X PRIZE, please visit www.progressiveautoxprize.org

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Smart move 2. Do an economic reality check.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Either one means it’s time to sell.

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.

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

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

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

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

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

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

Whatever the reason, the ultimate goal is to get out of debt and back into the black.

There are a few questions you can ask yourself regarding your current credit card use to determine if you are creating a credit card debt problem. Do you have outstanding monthly balances on more than one credit card? Do you only make the minimum monthly payment on your credit card? Have you had debt on your credit card for more than three consecutive months? If you answer “Yes” to any of these questions, then your credit card is probably more of a liability to your financial well being than an asset and, you should consider a plan to reduce your debt.

Although there are many types of debt, credit card debt is by the far the most menacing form for most people. Although many sites have debt reduction plans, we have put together one that will not only eliminate your credit card debt, but ALL your debt (credit card, car payments, student loans, medical bills, legal bills, taxes and even the mortgage of your house) in less than 10 years. That’s not a misprint. Depending on the depth of the debt and how motivated you are, it is quite possible to be debt free much quicker!

Before you write us off as crackpots – take the time to look at the system. There are no tricks, easy ways out or magic cures. It’s all straight forward common sense and anyone can do it if they have the will. We do take an approach that is probably different than you have seen elsewhere, but that is the goal of all the writing on our site. Off to step #1.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

Research the car models: do you prefer manual or automatic transmission?
Need four-wheel drive or all-wheel drive?
What safety features do you want?
Do you require a lot of cargo-carrying capacity?
Will you be doing any towing?
Will the car easily fit in your garage or parking area?
Regardless of whether you decide to buy or lease your next car, establishing a realistic monthly payment that will fit into your budget is a crucial first step. How much should this be? A rule of thumb is that your total monthly car payments — whether you own one car or more than one — shouldn’t exceed 20 percent of your monthly take-home pay.

Check your financial status to help you estimate what your monthly payment will be based on purchase price, down payment, interest rate and length of loan. Take the time to run the numbers now, before you go car shopping, print out the result and put this information into your car-buying folder. It will not only show you what you can afford, it will also help you control the numbers when you negotiate with a car salesman.

By completing these steps, you should now have a good idea about what car will work for you. Maybe there are a few cars that fit your criteria. It’s time to narrow it down.

Car buyers have been trained to visit local dealerships to find the car they want. In the Internet age, this is a waste of time and money. You can quickly cover more ground by shopping on-line. Car dealers are waking up to this new breed of shopper and have created Internet departments within their dealerships to serve the educated buyer who already knows what he wants and what he’s willing to pay. The only thing you have to do in person are test drive the car and sign the contract. And in some cases, you can even have the car “delivered” to you by the salesperson
he goal of a test drive is to experience — as closely as possible — the same type of driving conditions the car will be used for after purchase. If you commute, drive the car in both stop-and-go traffic and at freeway speeds. If you frequently drive into the mountains, try to find some steep grades to climb. Drive over bumps, take tight corners at aggressive (but not dangerous) speeds and test the brakes in a safe location, such as a deserted parking lot. Get in and out of the car several times and be sure to sit in the backseat, especially if you plan on carrying passengers. In short, ask yourself what it will be like to live with this car for a number of years.

While you are evaluating the car, don’t be distracted by the salesperson’s pitch. Don’t drive with the radio on — you can evaluate that later. A new car is a big investment; make sure you spend enough time really looking at it. And then, consider one last thing: your intuition. If you are uneasy about this car, follow your instincts. A vehicle purchase decision is too important (and expensive) to undertake without total confidence.

At this point you should have considered all the cars in the class that interest you. You should have a good idea what you can afford. You should know if you want to buy or lease your next car. You should have test driven your top choices.

Now it’s time to narrow your choices down to one car and make a deal. In either case, take a moment to congratulate yourself. You have done your homework to find the right car for you. Now you can move forward with confidence.

But before you go off on a shopping spree, you should be aware that your “convenience check” is nothing more than a cash advance on your credit card. Cash advances on credit cards carry many extra fees, often overlooked or misunderstood by consumers.

Here’s a quick look at the types of fees most card issuers charge for a cash advance:

1) Upfront fee of 2-4% of the amount advanced. On a $1,000 cash advance your fee will range from $20-$40 in addition to the interest charges.

2) Higher interest rate than on purchases. Many credit card companies charge 18% or more on cash advances. In addition, most companies apply only a small percentage of your monthly minimum payment toward the cash advance.

Some require that you pay down the balance on your purchases first before applying payments to the higher-interest advance. In other words, you’ll be paying fees and interest on your cash advance for a long time, especially if you only pay the minimum payment.

3) Cash advances normally carry no grace period. This means interest charges accrue as soon as you withdraw money or cash the convenience check.

By law your credit card company must disclose any fees associated with a cash advance. The easiest way to find out what fees are charged is to carefully read your credit card statement or to call your credit issuer’s toll-free customer service number and ask questions.

Credit card companies charge these fees for two main reasons. One, to cover the costs to process this transaction which are often higher than a regular credit card purchase. And secondly because of the percentage of defaults among credit advance users. These costs are then passed along to you the consumer in the fees and interest rates associated with a cash advance.

The next time you are tempted to cash that convenience check or withdraw money from an ATM using your credit card, be sure you understand the fees and long term effects of using a credit card cash advance.