Banks are More Open to Auto Loans

Big time lenders such as banks and big companies are still not open to loaning to just anybody. However, these institutions are very open to the car business. According to The Wall Street Journal, when it comes to auto loans, even those with low scores could easily get a loan from the bank, which could be the 5.7% increase that was recorded in the second-quarter of this year’s Experian report.

Car loans are still more expensive when you have less than perfect credit, according to Experian those with good credit usually are charged with only 3% on their interest. This year, those with FICO scores between 620 and 679 are charged 6.5% for the credit rate, those with 550 to 619 were charged 9.9% and those who have scores below 550 were given a 12.9% rate.

Subprime lending is also very high in numbers. Those who borrowed with bad credit had comprised almost one-half of the total numbers of the automobile loans. These are comprised of borrowers with FICO scores below 680.

The fact that lenders are now giving car loans to subprime borrowers is a positive sign that credit standards are starting to loosen up overall. This also shows that banks and other large lending institutions are more comfortable and trusting that people will be able to pay them their loans.

Car loans only represent a small risk to these institutions because of the small amounts that are being borrowed in a time interval shorter than that of mortgages. Also, once the borrower fails to pay or falls behind a monthly payment it is easier to repossess the car in the loan.

If you are a customer with poor credit and you want to own a car, it would be wise to shop around the internet or different companies for auto loans and a vehicle. Loans tend to have cheaper rates for those with poor credit if they come to banks or credit unions.

Understanding Cash Advance Payday Loans

Several lenders can offer you a loan without the need for you to go through a credit check. A cash advance loan is one of these loans. Before taking this kind of loan, you have to understand how it really works.

Cash advance loan is a type of short term loan that can give you quick access to cash. It is best for people who are not financially ready when emergency situations occur and for those who cannot take out a loan from traditional lenders because of poor credit.

Despite of its accessibility and ease in application, this type of loan come with high interest charges. Aside from the interest, it also charges high fees. On the average, cash advance loans charge $15 in fees for every $100 borrowed. As such, you have to find other

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means to obtain money if you think that you will not be able to afford repaying the loan.
Cash advance payday lenders are numerous. You can find it almost anywhere. If you want your application to be convenient, then you can go online and look for a lender there. As a recommendation, opt for an online network.

An online network of payday loans connects with 50 lenders competing in the business. When you apply through them, you can get the best rates because the lenders will try to make sure that you choose them by offering you the best deal. You only need to send your application online and then you will easily get the approval that you need.

To qualify for a cash advance loan, you must be at least 18 years of age. You must also be working during the time of your application. Oftentimes, the lender will only approve you if you earn at least $800 a month. Moreover, you need to have a bank account where the money can be deposited.

Once you get approved of your application, you can get a loan amounting from $300 to $1500 no matter what your credit rating is. The best part is, you can obtain this as quickly as 24 hours after submission of your application.

3 Things to Understand When Purchasing a Car on Bad Credit

If you want to buy a car but you have a bad credit, expect the dealer to require you a downpayment. But, if you know how, you can purchase a car without shelling out any money. You just need to understand a few things:

1.) The reasons why a down payment is required
The usual reason why a downpayment is needed is that it brings in additional profit to the sale. Aside from this, it is also needed in order to bring down the entire amount that will be financed for the approval of the lender. If you know the real reason why your lender is seeking for a downpayment from you, then you can work your way to lowering the amount or minimizing it completely.

2.) Your financing options are not limited
Even if you have bad credit, you are not limited to seek your financing from a car dealership. Many people think this way that is why they do not dare try seeking for bank loans. Moreover, settling for car dealership financing is the main cause of unnecessary expense because of the unreasonable finance charges. To avoid this, try traditional loans or other means to obtain cash for your car. You will never know if a bank or other lender will reject or approve you. You might as well try because you may be in for a surprise.

3.) Car dealerships increase their car prices
Everyone knows this and so must you. Not only do they mark up the prices of the car they are selling. They also do this for the interest rate they charge with it. If you seek financing from them, they will give your application to a lender. Then, the lender will give you an offer at a certain rate. Since you have a bad credit, the dealership will increase the interest rate by an average of 3%. The additional rate goes to the dealership as profit. This is not yet accounting for the revenue they already get from the sale of the car without the interest.

Bottom line, you can buy the car that you want without the need to give a downpayment or even despite of your credit standing. You only have to seek for other loan alternatives aside from car dealership financing.

3 Ways to Consolidate Your Debt

If you want to consolidate your credit card accounts and other debt and you have a history of bad credit, there are presently many options online to help you do so. Here are three of the services that you can find online.

First is to obtain an equity loan. This loan is ideal for debt consolidation for as long as you have a home that you can use

the equity or the maximum appraised value to obtain the money that you need.

Second is to apply for an unsecured loan. This type of loan does not require any collateral and does not have plenty of requirements. However, because you have a bad credit, expect this loan to have higher interest fees and not so flexible payment terms.

Third is not to take any form of loan but look for companies offering their financial

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services to assist you in managing your debt without the need to use a loan. Oftentimes, these companies will request for a fee to help you negotiate to your creditors to lower your interest rates and monthly dues. This technique is usually effective in bringing down or completely getting rid of your debt.

There are still many other ways to find a service that will help you manage your debt. Whatever choice you make, just make sure that the company you entrust your credit with will truly help you. There are many companies that will just go after your money and scam you to spend more. These companies will put you in a much worse debt situation so you have to be very careful. Thus, look for legit companies before making your choice.

Debt consolidation is a good solution that can help you manage your bills to be able to pay them on time. You just need to carefully look for the right service and choose the best deal before finalizing your decision to consolidate your debt.

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Financial Options Aside from Taking a Payday Loan

When you are just beginning with your life as an adult, you have to make the right decisions financially. A lot of people embark in the real world without having the right financial knowledge. Because of this, they end up making the wrong decisions that have a long term effect on their life. Some of these include being trapped in debt caused by taking out certain loans that becomes too difficult to pay. To avoid suffering in the long run because of your poor financial choices, you have to know your financial options that will not put your financial status in danger. Here are some of them.

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1.) Credit Union Loans- this is a small, short term loan offered by your local credit union if you are a member.

2.) Small Bank Loans- this is a small loan offered by traditional bank lenders.

3.) Cash advance from employers- some employers provide this loan. You can ask them to give you your paycheck in advance instead of seeking for a payday loan that will charge you with high fees and interest.

4.) Borrow from friends and family- Do not allow your pride to stop you from borrowing money from close family and friends. But, when you do obtain assistance from them, know your limits and set your expectations straight so that you will not end up destroying your relationships.

5.) Start an emergency fund- You must start building up your savings to reach an amount that can pay up for your six months worth of expenses. This is what you call your emergency fund. If you do not have this now, start it. This will help you avoid taking out any type of loan in the future.

6.) Use your credit card for emergency only- If you have a credit card to turn to, you do not need to obtain a loan just to pay for emergency expenses. Use your card for emergencies or only if you know that you can repay the balance of your card as soon as possible. Doing this will not only help you prevent payday loans, it will also allow you to maintain a good credit rating that is truly beneficial for your financial future.

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