Effects of Banks Downgrades

Last Thursday, the credit ratings of 15 of the largest banks in the world were downgraded. While the deposits are completely protected, the downgrades could negatively affect people in other ways, for instance, an increase in the fees charged by the banks and more difficulty in getting a loan. Consequently, mortgages, credit cards and the job market can be affected as well.

According to Jim Nadler, chief operating officer at Kroll Bond Ratings Agency, it is common that people are anxious about their money’s safety before anything else. However, the actual costs might be concealed.

Unfortunately, the downgrades come to banks currently in a fragile situation. Several of the fees that are charged on credit cards and checking accounts have been removed because of the most recent rules adopted after the financial crisis. Moreover, banks are excluded from making profitable bets in the stock and bond market, which eliminates a lot of money in the form of trading income.

Together with the downgrades, current fees might increase even further and new ones could emerge.

The three top rating agencies, Moody’s, Standard & Poor’s, and Fitch, give ratings on a scale that corresponds to the ability of a company and state or local government to pay off their debt.

In addition, the downgrades will direct money into reserves and decrease the amount of capital that banks have to loan.

Americans applying for home mortgages, auto loans, and credit cards will experience the effects. Banks have been very selective regarding lending money, approving only those that have stellar credit or a steady employment history. Also, since people with bad credit are not given cards, the numbers of credit cards issued by banks have decreased significantly.

The effects of the downgrades will be felt even more by small and medium-sized businesses. They provide jobs for people within the country but recently, there are lesser jobs to offer. These businesses are finding it hard to get bank loans as well.

Looking Better After 23 Years – Auto Loan Delinquencies Reached It’s Lowest

TransUnion’s report shows that in the first three months of 2012, after 23 years auto loan delinquencies have reached their lowest ratio to date.

Now, more than ever, seems like the best time to buy a car for those with problems with their credit statuses.

Auto Credit Express has been active in helping out credit-challenged clients with their problems in getting a car loan. They have been dedicated in finding automobile dealers who would sell to low credit customers, this program is called “bad credit car”, and their website also includes child support revenue and many other issues.

The conclusions of the data of TransUnion came from the records of about 27 million consumers that have been randomly chosen. The number of samples is a fair indication that the survey is quite accurate.

According to the survey, the number of the nation’s auto delinquency rate, those borrowers who failed to pay their loans for more than 59 days past their due dates have fallen to 0.36 percent in the first quarter of 2012 from this is 0.10 percent lower than the last survey in 2011.

According to Peter Turek, the vice president of TransUnion’s financial services business unit, the number of automobile loan delinquencies have fallen because if the increase in the demand for cars whether they are used or not.

Furthermore, this means that there are more chances for clients who apply for subprime auto lenders to have their loans approved. So if you are someone who would want to find a high-risk car loaner, here are some things you need to put in mind:

First, you should know your FICO score and all other vital information in your credit reports; second, you should have a plan to pay at least 10% of your commodities in cash; third, you should keep your loan terms short and finally, find a vehicle that is dense and do not consider replacing it unless you have reestablished your credit.

NADA: Prices of Used Cars Will Decrease Through July

According to most recent information from National Automobile Dealers Association (NADA), there will be a decrease in price of used cars during the month of July. This means that it would make sense for people with not-so-perfect credit to purchase a car.

The majority of people with low credit scores restore their auto credit by investing in used cars because they are usually less expensive than brand new vehicles. As a result, it is crucial that this kind of car buyers have an understanding of the used car market.

Jonathan Banks, the senior analyst of NADA Used Card Guide, said that the prices of all used cars will decrease because of the seasonal demand, especially the cars that usually meet the needs of car buyers with poor credit.

In addition, Banks said that the recent prediction of NADA leads to a decline in prices of used cars by 3 percent in the month of July. Because of the decrease in prices of gasoline, it will result in larger depreciation of compact and midsize vehicles. However, it will assist in control the losses for light trucks, for instance, huge pickups and SUVs.

On the other hand, it is worth mentioning that prices of used car will stay at high levels during the latter part of the year, regardless of the anticipated seasonal reduction.

Since summer vacation season is almost ahead and in order for you to travel, now is the perfect time to consider buying a used car that you might not have been able to buy in the early months of 2012, even when you have a low FICO score.

Moreover, visit the website of Auto Credit Express because they will help consumers with credit problems find the best dealer that can offer them an auto loan approval. They will also help consumers restore their auto credit starting with an online application for car loans.

Car Loans for Citizens Who Have Filed Bankruptcy

Auto Credit Express is dedicated to answer queries of clients who have difficulties in their finances due to credit problems; they have been at it for twenty years now. One of the most asked questions in the site are about bankruptcy.

First of all, you must know that there are two types of bankruptcy for a private person: Chapter 7 and Chapter 13. These two can wither be discharged or dismissed.

To dismiss bankruptcy is more associated with a Chapter 13 bankruptcy, this is typically occurs when a person fails to fulfill an ordered payment by the court on time. Subprime automobile dealers would often dismiss you as a client as well if a dismissal is stated in your credit report by the court.

A discharge on the bankruptcy however, occurs when the client successfully pays the court’s fees on time. A letter of discharge will be issued by the court as proof that you have been able to comply with their terms, this letter will also serve as evidence that you have been successful in completing bankruptcy, in case a delay in credit bureaus’ reports occur.

After you have completed bankruptcy though discharge, you can start rebuilding your credit again. Have your automobile loan and your credit card liabilities reaffirmed. You will also have to restart a new revolving credit and an installment credit.

A credit card is a good example of a revolving credit. If you cannot get a regular card then it is very likely you can get a secured credit card instead. This card would bind your credit limit depending on your savings’ remaining balance. You have to sign up for your preferred credit limit deal, and maintain a steady balance of 30% in your balance or less.

A car loan is an example of an installment loan. It is hard to look for dealers who sell new cars to people with problems in their credit, especially if they have just recovered from bankruptcy.

Getting a New Car Despite Low Credit

Getting your hands on a brand new car is now easier if you are an auto manufacturer’s employee or if you have relatives or friends that do. According to Auto Credit Express, there are plenty of car discounts you could take advantage of even if your credit status is not so brilliant.

Auto Credit Express is adept in these kinds of discount transactions because they have been a strong aid in providing automobile buyers with tainted credit. In fact, their website includes a section that answers most asked questions that consumers have about online car loans bad credit, and they have been at it for about 20 years now.

The cost of new cars are very expensive nowadays that people with less than average credit tend to settle for second hand cars with low interest rates. Unfortunately for them, they had no clue that they could apply for an automobile loan for a new car that would cost them as much.

You can apply for the A-plan, S-plan or X-plan if you are a Ford employee, or if you are a retired employee or a friend of a retired or currently employed Ford employee. If you or your friend is a current Chrysler employee, or if you are retired or you work for one of its suppliers you can avail the Employee Advantage employee purchase, friends program or the affiliate company program. The GMO or GMS is available for GM employees or their retired employees, you can also avail the discount if you are from one of its preferred supplier company or a friend of an employee from that company.

Most of the time, car buyers are allowed to get a discount of the price of a new car for an even bigger saving for the purchase, however even if you qualify for the program, that does not mean you can use the discount you earned.

Sometimes, you have to follow loan approval guidelines you must follow. The lender will be the one to determine your budget for the car, and the interest rate you will have. It is then up to the deal which cars you can get. But then again, a new car is way better than being stuck with a second hand car loan deal.