Buy a Car with Poor Credit Through the Help of Credit Unions

If you are planning to buy a car, but you have poor credit, then you are having a financial problem. Purchasing a car is not an easy process, and made worse by your poor credit, selfish dealers, scams and very high interest rates. However, if you are a credit union member, then you have the help you need to get that car you badly want.

Here are some guidelines from Credit Unions Online regarding how to buy a car with poor credit.

First, be aware of your credit score and do everything to make it higher. Based on the website buyingcarwithbadcredit.com, the difference between a credit score of 585 and 595 could already be equivalent to one point in the interest rate. If you are in between two score groupings, try to check your credit report for errors and this might cause your credit score to be higher and your interest rate to be lower.

Second, give as much as possible for a deposit. Since you have poor credit, then it is most likely that you are also struggling with cash. So do anything and everything to obtain cash because this will help the lender decide and persuade him that you are credit worthy.

Third, you might want the option of having a co-signer. Look for someone who is willing to be your co-signer, especially someone with good to excellent credit. However, remember to respect him as a co-signer and make sure to pay on time because if otherwise, he will be held responsible for your debt.

Last, visit your credit union. Credit unions provide their member with low interest rates and financing options on car loans that suits their member’s needs. Moreover, credit unions offer vehicle buying services that will assist members in getting the right deal and financing option.

Vehicle buying services vary from one credit union to another, but one thing they all have in common is that they offer cost-free services. If needed, most credit unions also offer cost-free credit counseling.

These are some of the things done by your credit union that cannot be done by an auto dealership. Your credit union will certainly cater to your financial needs.

Sublime Moneylenders Starting to Reach Their Toll

Borrowing big sums of money is a big headache for those with bad credit. A loan of $10,000 is not impossible to get, even if you have a not-so-good credit score. The remedy can be found on the internet: sublime money lenders.

Online moneylenders and credit cards are now becoming the substitute for banks in providing the money loans of clients with bad credit scores. In fact, according to Equifax, the number of borrowings from credit card lenders to clients with less-than-average credit status has grown to 41% from the previous years.

People with bad credit have to pay a larger amount to borrow from the institutions, but it’s a trade they are willing to take. However, subprime lenders (those entities that loan money to those with bad credit) are slowly closing out some of their branches; this is according to Wall Street Journal. Among these entities is Springleaf which was bought by Citigroup from AIG Company.

The paper also reported that the credit status of Springleaf has fallen so badly that it is having difficulties in getting the money it needs to make profit from loans. Another lender that is having the same difficulties is One Main.

The current strategies that these lenders are taking are giving high rates for interests, implementing strict short due dates for borrowers, and giving firm consequences. The same terms apply regardless of the amount sublime borrowers request from them.

Sublime borrowers can also turn to pawnshops for higher loans. However, this step is only good for short-term needs but it is a safe and guaranteed way to get money.

If this is not sufficient, a face-to-face approach could be the only option for those with bad credit. You can turn to unions to get the loan you need, or you can sign an agreement and borrow from a friend.

Homes Act to Provide More Affordable Housing in California

The state leaders of California are discussing whether or not they should tax homebuyers to be able to provide more affordable housing for those who cannot buy or even rent a house.

One-third of homeowners in the United States have more mortgage debts than the cost of their houses. These families are drowning in debts and having problems with their housing.

When a family loses a house to the bank, then they begin to compete with other families in renting apartments or small houses, which have limited living space. There is a one in a million chance that these families rent a good apartment considering the fact that they most likely have poor credit and no savings left.

California’s state policy makers know that their constituents still cannot afford to buy a house. As a result of the elimination of Redevelopment Agencies, $1 billion was deducted from the funds for annual affordable housing. Also, this caused Californians who earn a small income to struggle from finding an affordable housing that is adequate for their small budget.

Now, there is a bill called Housing Opportunity and Market Stabilization Act (HOMeS Act) or also known as SB 1220. This bill suggests a $75 addition to all real estate transactions in California, and the earnings would be used to fund affordable housing.

This bill is criticized by many and they say that the $75 could damage California’s weak housing market.

Despite criticisms, the $75 would actually accumulate and reach $400 million to $1 billion annually. Consequently, this could already finance a lot of houses to be given to families and individuals who earn little or who have no homes.

Over the years, Californians have been considered as trendsetters of the state because of, for instance, living a healthy lifestyle or taking care of the environment. Now, California might make a new trend in helping its constituents through providing more affordable housing.

How to Get an Apartment Despite Bad Credit

Bad credit is always the problem when you want to purchase automobiles or apply for a college loan. Banks are always specific on credit scores, making it difficult for clients to even get the money to pay for a decent apartment.

But you can always turn this around, even if you have less than the preferred status in your credit that does not mean you can never get a good place. Here are ways you can acquire that:

First, get the information of your credit reports. This will not get you the apartment overnight, but this will certainly allow you to keep the place for a long time. Getting the information about your financial status and problems will allow you to explain your situation to the landowner. Being honest and getting in the good side of the owner may just get you the approval you need.

Furthermore, monitoring and reviewing your bank’s reports will allow you to spot probable errors like a recently paid debt that was not recorded, or typos that could be harmful to your balance. It is also best to look for private apartment owners, not large company-owned ones, so that you can negotiate easily.

Second, you can as someone to cosign a loan with you. This person could be a relative or a trusted friend who has good credit. The person will be answerable too, a good financial backer also gives the landlord an assurance that he will be paid for his lot.

Third way to get you that apartment is to give a large deposit for it. But not every potential landlord may agree to give in. A big deposit is not a guarantee that you will be able to pay off the apartment in the future. Furthermore, some states have laws about maximum deposits that can be given for a property.

Fourth, try to look for a place that makes no credit checks. There are some private managers that do not bother for credit checks, and just look on to a person’s personality. If you can talk out and negotiate the price as well as the terms with the owner (provided he likes you) the place is as good as yours.

Finally, you should have a plan for the future. If you want to be able to stay for a long time you have to think far ahead. You have to repair your bad credit. If currently, all your efforts are in vain, the best thing to do is to get a good credit and lease the apartment in the future.

This will not only give you the opportunity to pick any apartment you want, it will also mean easier access to car loans, financial aids and make other purchases.

Good Credit is Better Than Having Cash

Between cash and credit, having good credit is better than having lots of cash. This is because your own credit history is checked prior to notifying the client of your buying power.

If you have no credit or bad credit, then, as a prospective buyer, the total cash you may loan and the kind of mortgage you may obtain might be restricted. Also, you might be charged a higher interest rate than that of someone with good credit history.

The three major credit reporting agencies are TransUnion, Experian, and Equifax. Lenders report loans to either or all of these three every month. If the borrower has on time payments, it may be good for the credit history, but if the borrower has overdue payments, then it may be bad for the credit history.

The three credit reporting agencies have different scoring systems but they all end up with three-digit credit score. It is better if the credit score is higher and your score should be in the middle of 700 and with restricted credit lines.

It is not necessary to have a lot of credit cards because two to three cards can already increase your credit score. Having lots of open credit lines will also mean having a greater possibility of late payments, and remember that a single overdue payment can already radically decrease your credit score.

The following are some tips for you to follow to have high credit scores or to increase your present credit scores. First, you should never have late payments. Next, pay the credit cards with higher interest rates as soon as possible. Credit cards with higher interest rates will you have higher costs every month. Lastly, discard all you credit cards except two to three credit cards with low interest rate. Close the accounts of credit cards with high interest rates. Don’t worry if you have a balance, because you can still use it in the future.