How to Rent an Apartment with Poor Credit

Besides difficulty making purchases, having a poor credit can also mean that you will have difficulty renting an apartment. On the positive note, there are still ways that you can have a nice apartment and the following are some tips on how to do so with poor credit.

First, get a copy of your credit rating and examine it. If there are any problems in your credit, then try solving them. For instance, pay off previous debts to improve your credit score.

Second, consider getting a cosigner, someone you know, a family member or a friend with good credit score, who will be held responsible for your liabilities in case you don’t pay. This can help convince the landlord that your rent will be paid. Although cosigning is avoided as much as possible, there are a lot of landlords who are more comfortable renting to people with poor credit, as long as there is a cosigner with good credit.

Third, pay a huge amount as deposit. Paying more than the average deposit can make the landlord feel more confident about renting to you. Besides earning back their losses, landlords will feel that you are sincere and will be more difficult for you to leave.

Fourth, find an apartment that does not require a credit check. Unlike bigger corporate apartments, there are small-time landlords that do not perform credit checks because of the additional expenses and hassle for them. Even though it will be harder for you to find an apartment that don’t perform credit checks, there are still good apartments among rental properties.

Fifth, don’t only think of the apartment you’re getting right now but also having a long-term plan of improving your credit. By doing so, it will not only allow you to get apartments easier, you will also be able to get auto loans and mortgages. One of the benefits of improving your credit is there are landlords who require smaller deposits from those with good credit.

Less Debt More Uncollectable Accounts

The debt of Americans is continually decreasing these past few years. From an average of $16,383 two years ago, it has fallen to only $14,517 this year. This has nothing to do with financial discipline, and certainly this is not very good news for the industry.

The decrease in the rate in 2010 was due to the uncollectable amounts that were write-off by the companies, and this may be the case for 2012.

It has been nerve neither racking for consumers that the rate of debt is not going down nor showing signs at all. Credit rate has continued to stay stable in 2011 and has not made no signs of change ever since. The largest decline in credit occurred in 2010 but the two years that followed did not follow its trend.

The only hope for consumers is the fast recovering economy of the United States from the recession it suffered from in 2008, and the fact that more credit lending companies are more open to lend to customers even if they do not have a spotless credit history. Furthermore, the high employment rate continues to boost the confidence of lenders.

But this current trend in the lending business poses a threat in the future. The more the economy becomes progressive, the more these financial intermediaries will take on risky decisions. This will lead to the eventual rise in the debt rate again. It is an unavoidable cycle that once too much debt is made, and then the economy will surely fall again.

As all of you might now, the top three debts that American households endure are housing loan in first place, followed by student financial loans in second and credit card liabilities in third.

Debt occurred by student loans make out a total of $1 trillion. Though credit cards could be a very hard deal, student loans are imposing a very high threat in the economy. The US president Obama is trying to get legislators to sign a law to address this problem, and hopefully they succeed.

A Merry May for Auto Dealers

More and more Americans are getting their hands on brand new sizzling cars because of the current automobile friendly status of the industry. Since it has been easier for consumers to get their hands on automobile loans and the price of gasoline has dramatically decreased in the past weeks, it was a whole lot easier for car dealers to sell.

The  industry has sold over 1.3 million automobiles on the month of May. This has increased by 26 percent compared to the sales in April of this year. This has been the best month for the industry since 2008.

Analysts were surprised with the trend of the auto industry last month. Since the sales of these car dealers were often interdependent with the confidence ratio of consumers and market stocks, and May was a very difficult year for the national market for it was in the worse state that it has ever been since 2010. The confidence of consumers in numbers is also very low for the month.

In an interview, Mr. Jesse Toprak the vice president of the TrueCar.com in market intelligence shares his amusement in the turn of events as well. He says their company expected a very bad business month for May, but the complete opposite happened. He however, predicts a decrease in sales this June since unemployment is rising in an alarming rate. He also predicts a better market after the Presidential Elections.

But there are other analysts that believe the economic phenomenon will not be a problem at all. Ken Czubay the sales chief of Ford in the United States, believe that the auto industry’s good fortune will continue to be good despite the loss of jobs of consumers.

Toyota currently leads the industry sales with a 87 percent increase in their sales since last year. Honda follows with a wooping 48 percent increase. Both these industries were greatly affected last year because of the massive earthquake that hit their factories in Japan.Chryster also saw a 30 percent increase, Volkswagen at 28 percent and Nissan at 21 percent. Other companies that reported increase in sales are Hyundai, Ford and General Motors Co.

Sellers continue to have a positive feeling in their sales in the coming months. Among the reasons why sellers are unperturbed by a decrease in sales are first, the continuing demand of consumers for cars. Second, the continuing productions of makers of quality eye catching cars that continue to attract buys all over the country. Finally, the easier access to car loans even to people with a bad credit history.

Get a FHA Loan and Get Your Dream Home

The federal loan of the government was intended to give citizens the finances they need to get a house despite their low salary and bad credit. Banks would often deny these people‘s request for loan due to the fact that they are unsure if they would be able to pay back loans.

FHA mortgages are one of the government’s ways of helping these potential clients to get loans in financing their everyday necessities. But since the United States had suffered from a recession in 2008, the project was greatly affected and not all of potential clients were able to qualify for the program.

So how does one know if he or she is an eligible candidate for the FHA loan? Well first, let us review why the program was initiated. The Federal Housing Administration is a project headed by the United States Department of Housing and Urban Development. In 1934, the program was initiated to prevent home lenders from being broken due to a home renter’s inability to pay rents on time.

This program allows the government to intervene in the customer lender mortgages if the client goes default in his or her payment. The program has been effective in its function and it now has about 34 million mortgages that it has settled over the 78 years of its existence.

But this started to get harder when 2008 came. The FHA loan was harder to qualify for since the agency had to be stricter to their customers. But now since the economic crisis is finally starting to lift off again, the FHA is starting to approve mortgages again but not all banks are willing to go with the approval even if the individual fulfills the minimum requirement of the agency.

But what are the guidelines that must be comply by the applicants? First, the credit score of the applicant must be at least 580, those who have scores in between 500 and 579 the agency will give a mortgage of 90 percent or lesser of the total price of the house.

Four Tips to Get the Best Auto Loan on Poor Credit

If you have a poor credit, it does not necessarily mean right away that you cannot purchase a car or get an auto loan. Just like other things, the degree of “poor credit” can differ from one person to another. For instance, if your credit score is in the middle or the average, a few lenders may still consider giving you a loan, but others who have a different measure will probably consider it a risky action.

According to senior consumer advice editor of Edmunds.com, Phil Reed, since several auto loans have a rate of 18 percent and 20 percent, it is important to look around different lenders. Moreover, Jack Tracey, executive director of National Automotive Finance Association, agreed that looking around is important.

Tracey added that it was more difficult to get a nonprime auto loan in the early months of this year and in the latter months of the previous year. The following are four tips in looking for the best subprime auto loan.

First, consumer attorney Yvonne Rosmarin said to have a companion when looking around. Besides having another set of eyes and ears, your companion can also act uninterested or doubtful of the loan terms.

Second, according to Van Alst, get a loan with the lowest annual percentage rate and short period of time.

Third, senior researcher for the Center for Responsible Lending, Josh Frank, said that there are lending contracts packed with unnecessary goods and services and nonprime buyers usually come across these. Frank added to never let the loan be subject on buying add-ons, like extended warranties, after-market services, or insurance.

Fourth, when financing through a dealer, check that the terms are final and not conditional. In some cases, buyers are informed after days or weeks that their monthly payments or deposit has become higher. Based on an April 2009 survey conducted by the Center for Responsible Lending, one in every 22 buyers or one in every nine buyers with poor credit is a victim of this so-called yo-yo sale.