How to Reduce your Car Insurance Payments

Did you know that aside from reestablishing your credit, you can also save money on your car insurance when you apply for high risk car loans? If your credit is not so spotless then it would be wise to read on.

The loans that dealers would offer you for high risk lending or subprime lending can be very beneficial for you unlike when you apply for note deals. The lenders will report your auto loan to credit bureaus and if you pay your bills on time then it will significantly improve your credit standing.

Not only that, there are many indirect ways that you can be in the advantage when you have a subprime auto loan, for instance you can re build your credit and raise your FICO score which would make you more qualified for diverse loans.

There are many things that are interconnected with your FICO score. When you get a loan, the first two things you consider are your credit card rate and your qualifications to get a credit card. Automobile rates may also be affected by your FICO score; those with poor credit tend to get costly car insurances.

Car insurance companies now tend to run credit checks when people apply form them. If your credit score is low, some stated charge expensive premiums. This is because those with poor credit tend to miss out in their monthly payments. When we speak of missing payments collection is often included as well as cancellation of the policy, these events would lead to additional expenses for the insurance company so they tend to charge those with poor credit more interests and fees.

So when your credit score gets better and you start to save more money even before your loan for your automobile is completed, and not only that, companies will tend to lower the cost of your loan.

Allstate’s Your Choice Auto Program No Longer Sold

Based on a press release from Consumer Watchdog, a nonprofit group, the Allstate Insurance decided to stop selling its “Your Choice Auto” (YCA) insurance program in California.

In the YCA program, drivers are charged more than 15 percent in premiums although they are promised the policy premium will not increase due to future tickets or accidents.

However, Consumer Watchdog believes that the benefits are not worth the extra fee. Moreover, the consumer group discovered that Allstate took a total of $20 million annually in additional premiums.

In addition, it was also found out that Allstate was violating the good driver discount law of California, unjustly discriminating drivers in spite their excellent driving record, marketing a misleading product and encouraging reckless driving.

According to Todd M. Foreman, in-house counsel for Consumer Watchdog, the YCA program became a cash cow for Allstate through asking customers to pay for more than they should be paying as stated in California’s good driver law. When Allstate knew that their executives might be cross-examined regarding the costs and benefits of YCA, they ultimately decided to take the product off the market.

However, other states with similar YCA programs still sell the product. In other words, if you are looking around for car insurance and you come across an Allstate YCA policy, think twice before making your final decision. If you have one at present, it might be better to shop around for less expensive alternatives.

Even though insurance companies in several states price their auto insurance policies using credit scores, it does not imply you cannot look around for other car insurances even if you have poor credit.

Don’t be discouraged if you have been repeatedly rejected for a conventional auto loan. Auto Credit Express specializes on searching the most appropriate dealer for the applicant with car credit problems. They make sure that they will have a chance to get approved for an auto loan.

Lower Cost for Cars

Not every buyer knows the total advantage and benefits of the programs that Mazda offers consumers, especially those with less than perfect credit.

This does cannot benefit to many customers with credit issues however because first, the applicant must be qualified to have a new or a used car and the cars that you must apply for is a Mazda model and only those cars that are franchised by the new car dealers of the company are the ones who can approve this loan.

However if you are able and qualified you can have a new car with full certified counterparts that would be budget friendly. The Mazda 2 and Mazda 3 are among the cars you can get a deal for. Mazda 3 is endorsed by the Consumer Reports while the Mazda 2 also has received a positive response and high marks from the CR even if it is still too early to tell if it is as recommendable as the Mazda 3.

Another area that a car buyer should consider is the cost of maintenance for the vehicle he is purchasing, because according to the latest trend, most of the repossessed cars are due to car damages and breakdowns. Customers who tend to get lemon cars or used cars that are costly to repair stop paying for the loan and end up having the car repossessed. Just think about it, why would you want to pay for a car that will not even work properly?

Mazda announced the launching of its new program entitled Mazda Total Advantage Program which would pay for a scheduled maintenance of the cars that a customer buys from them. This will be very helpful and cheap compared to buying vehicles without the services of maintenance for the car.

Here are some of the benefits that customers will have with this program. First, they will be protected from fake Mazda car parts and trained car repairing professionals will personally attend to their needs. You will not be forced to pay expensive service costs because you have the vehicle maintenance agreement. You will even have the option to pay how much you can for the monthly repayments.

How to Get a Car Loan Despite Bad Credit

If you were wondering how you can repair your credit at the same time complete a subprime auto loan then you just tuned in to the right place because this article is going to show you how.

Before anything else, you should first be very familiar with what your credit report and your score says. A FICO score above 660 is what you need to get a car loan with a financial institution like a bank or a credit union. If your FICO score falls below 660, then it just means you need to find a subprime lender to get the loan you need to purchase a car. Conventional loans and high-risk (subprime) loans are very different from each other, however for both cases, knowing where your credit score stands is very significant to get your loan approved.

Next you should know your car budget. Aside from the amount you will be paying for the car, you should also anticipate the other fees you will be paying for once you get a car like your gas and car insurance. Check if your income can accommodate these fees and if you think you need help in budgeting then you can log in to autocreditexpress.com for assistance.

Next, you should maximize your options and research about the kinds of cars you can buy given your current budget. If you want to look online visit consumerreports.org; this website is very helpful in illustrating the models that are fit for your lifestyle and money.

Before you go to a dealer you should first come to friends and your other relatives and most especially the Better Business Bureau for advice. Buyers with bad credit may find it hard to look for car dealers that will be very willing to help them in owning a new car that is why you should solicit advice and check the website of consumer protection agencies first.

Refinancing an Auto Loan

Mortgages are not the only types of loans which can be refinanced, but also auto loans. Unfortunately, the majority of the public are not aware of it. The survey, conducted by CarFinance.com, emphasizes that refinancing an auto loan is feasible and may be worth anyone’s time.

The survey by CarFinance.com had 2,000 adult respondents in the months of June and July 2012, and discovered that 63 percent of the respondents are not aware that they could refinance an auto loan. Moreover, 12 percent of the respondents said they had previously refinanced an auto loan.

While it is still a bit difficult to get credit, at present, it is less difficult to get a loan than in the previous year. The following is a guide to assess whether or not you should refinance an auto loan.

First, if an auto loan comes with rigid pre-payment penalties, then it’s not a good time to refinance, especially if you have a small balance and you are not capable of making large monthly payments.

Second, make sure to assess your credit by getting your free annual report from the three credit reporting agencies – Equifax, Experian, and TransUnion – through visiting AnnualCreditReport.com. Check if the information are accurate, and if there are errors, dispute it.

In addition to getting your credit report, getting your credit score is also important. If you have a good credit report and credit score, then you will more likely benefit from refinancing.

Third, look for a number of auto loans from different banks. It is better if you have a lot of options or a wide range of quotes. Websites such as LendingTree.com allows you to file an application to many lenders all at once.

Fourth, do not rely on the figures given solely by the bank, but you should also use an auto loan calculator to compare your existing payment schedule with your recent one. On a positive note, refinancing an auto loans does not include expensive application fees or closing costs, unlike refinancing a mortgage.