Bad Credit Car Loan Vs Guaranteed Auto Financing – Will You Save Money?

You’re in the market to buy a new car and that’s great. Today most everyone buying a new vehicle will need some form of auto financing and if you find your personal finances or credit are less than perfect, you can still get a very affordable car financing if you know how.

An informed car buyer is a smart car buyer. When you know your auto financing options and you have your car financing set up and approved before you talk to any sales person, you can walk into a car dealership and negotiate a better deal on your terms without feeling intimidated, regardless of your financial situation.

If you know that you have certain credit challenges, you should understand the differences between bad credit car loans and guaranteed auto financing.

Bad Credit Car Loans…

Bad Credit Car Loans typically have been available through new car dealerships on the purchase of a new car or a pre-owned certified used vehicle. The actual auto loan financing paper-work is handled at the dealership but in general, the bad credit car loan finance contract is sold off to another lender. That lender will maintain and service your loan. Loans typically have a term of 24 months up to 60 months. The downsides to a bad credit car loan are that many franchise car dealerships are not set up to arrange these type loans in-house, interest rates and cost can vary widely and limit your auto purchase choices.

Guaranteed Auto Financing…

Guaranteed Auto Financing differs from a bad credit car loan primarily in that this type financing is offered directly by smaller or independent auto facilities. Your finance contract is provided by the actual auto wholesale dealer and the loan is paid directly to the auto dealer that sold you the car. In other words, you would be financing your car purchase from the company that owns it and sold you the vehicle. Guaranteed auto financing is used for the purchase of used or pre-owned vehicles and not typically for purchasing a brand new car or truck. Loan terms are shorter than more conventional auto loans and they rarely offer terms over 36 months.

The big advantage to guaranteed auto financing is that often no credit check is required to obtain this financing. Payments are normally made weekly and sometimes in person. One disadvantage to this type of auto loan is that many car dealers providing guaranteed auto financing will never report your credit to the credit bureaus. So if you’re making payments regularly and establishing an excellent payment history, this will not be reflected in improving your personal credit profile or your credit score.

Your best approach would be to start now and see what financing options are available for you. There are excellent specialized auto financing services available online today that offer a whole range of affordable car loan programs even if you’ve been turned down for financing or you have poor credit, bad credit or other financial considerations, you’ll be surprised at how they can help you to buy a new car.

You see now that there are major differences between a bad credit car loan and guaranteed auto financing and there are other financing options besides these. Get approved for the best car loan for you first, then walk into the car dealers and negotiate on your terms.

Lawsuit Financing Companies

Attorneys, law firms, lawyers, beneficiaries or clients usually form lawsuit-financing companies. Lawsuit financing companies can also provide appeal finance, firm finance, custom finance or estate finance.

Many lawyers and attorneys create lawsuit financing companies based on their experience and the types of cases they encounter the most. Attorneys and lawyers with expertise in personal injury lawsuits or patent lawsuits help by providing cash advances and support in their fields.

Lawsuit financing companies provide many financing options. With a significant monthly fee, a few lawsuit financing companies may help to settle the case faster. Though a large variety of options are available, the plaintiff has to discuss with the attorney which option is best suited to him.

The lawsuit financing company and the plaintiff can make an agreement of the amount of share the lawsuit financers would obtain after the settlement or the verdict is known. This is called “flat fee”. Apart from the flat fees, the plaintiff has to pay a minimum fee every month, called “recurring fees”, to the lawsuit financing company. This recurring fee can be as low as 2.9% in the case of a few lawsuit financing companies, or could be as high as 15% with other companies.

It is the financing company’s decision as to how much to pay as the cash advance. Lawsuit financing companies pay from $1000 to about a million dollars depending on the case.

Every lawsuit financing company would have a team of lawyers to assess the strength of the case. The key is to avoid funding frivolous complaints. Thus the financing companies will scrutinize the complaint and decide the chances of success of the case.

Lawsuit financing companies do not term their cash advances as loans but as investments. The applicant has to repay after the verdict. Usually the monetary settlement that is obtained after the settlement by the court is larger than the company’s advance. The lawsuit financing company should be paid the principal and the predetermined share of the monetary verdict.

Credit Repair Guide to Mending Your Credit Score

Is your goal to mend your credit standing?

Then you need to reflect on many variables before getting started on building your credit. Credit is good in many ways, and bad in a handful of ways. credit puts stress on us because we’ve to keep a rating in order to get the respect we deserve.

Most of us have our very own struggles in life and some of us more so than others do. There are numerous reasons a person’s credit Is flawed. we often require to maintain an increased degree of accuracy or else. Since, we don’t like ‘or else’ Then we have to perpetually look for a solution to keep our credit standing at a good rate. The good qualities about credit are it will give you a resolution when times are hard, and when you want to build credit.

To get started mending your credit then you must discover various methods that may help re-establish your credit ratings. One thing you are going to do Is get copies of your credit reports. the disadvantage Is you will have to pay for the reports unless you apply for a charge card or loan. Be sure to avoid applying for cards and loans as the more you apply the greater it affects your credit ratings.

when you make an application for a lending product or credit, the creditors will ask for copies of the credit report, which adds points to your credit score and it stays on your report for around 3 years. the more points you possess, it will take away from your score, that is certainly more important than your credit. As soon as you make an application for a credit card or loan, then you definitely have one advantage of getting all 3-credit reports free.

Today everyone is checking credit, so your score is always affected in one way or another. At the moment nearly, every business will check your credit history, so for anybody who is buying an automobile avoid allowing the sales reps to check your credit until you know this is certainly what you want.

it really Is helpful to have an updated credit report, which most lenders will inform you “oh we can not use that.”This Is ok; tell the reps” you aren’t checking my credit until I’m sure this is exactly what I want to do.” the credit report offers them an sketch of what they will be using.

Understanding The Fact

As soon as you have made application for your credit reports, it is possible to move onto phase 2. When you have had any charges on your credit report, that seem to be suspect You’ll want to speak to the 3 credit bureaus immediately, petitioning the charges.

the claims against your report have an impact on you, this means you have the right to file a claim with the Fair Crediting Reporting Act (FCRA). in 1971, the us Congress passed a law to protect us against claims filed on our credit report that don’t belong to us.

Reap the benefits of this law. Geting a grasp on the steps to credit repair Is vital so you can get on the road to building credit. After you have disputed your credit history errors, you should next plan to wait a minimum of half a year before trying to get a loan or a credit card. After about six months, virtually all credit bureaus take off the errors completely.

Be careful that sometimes its possible you have to argue with the bureaus, Since in some cases they neglect to remove the errors. If you have any delinquencies against your credit file Be sure to look after them right away if possible. While you wait, the six months be sure that you carry on paying your bills on time. If you do not have the money to pay the bill entirely, Make sure you make acceptable payments on the bill to avoid a bad credit score reports.

Those that intend to apply for a lending product later, it is important to meet all payments necessary of you. In addition, it’s wise to maintain an updated copy of your respective credit reports always ready if possible. we are advised to monitor our credit reports regularly so that we know where we stand with our credit. In the event that your goal is to heal your credit, taking the initial step would be the beginning of building an ideal credit score and rating.

Comprehending credit Files

should you be in debt and nagged daily by creditors you need to understand your credit Files to mend your credit. for anybody who is delinquent in payments your credit score Is affected, and often you can’t apply for a loan. There can be exceptions But if you can obtain a loan or bank card you’ll be paying high interest rates. your credit file determines your fate in life.

If your credit history has a low score most landlords, bankers, or providers will turn you down when you apply for a loan. But if your credit file indicates you happen to be the lowest risk then you most certainly will Benefit from getting a loan, apartment, credit card, or whatever you make an application for.

credit ratings are a ‘numerical’ system that determines an individual’s credit rate and score. credit ratings generally rate from ‘300 to 850’ the scores are higher If you have an outstanding credit rate. For those who make an application for a lending product and the loan companies are unable to find your credit report you are often viewed as being a mishap. what this means Is you, have not established a credit history and no one can definitely tell if you’re a good or a bad risk.

This is the reason why you have to establish credit at an early age. when you make an application for variety store cards, credit cards, electricity cards or other items that give you credit, then you definitely are on your path to establishing a credit history and your file Is on record. the challenge with applying for credit cards or loans, or any type of credit, Is that Whenever we commence our parents in many cases are co-signers. therefore If we cannot make payments our mum and dad are obligated to repay the debts.

The Fact remains that If we make an application for employment, make an application for an condominium, or take out an insurance policy we’re creating credit. your credit Files tend to be stored in computers at TransUnion, Equifax, and Experian. the law protects us to some degree when it comes to credit repair. To understand all the legalities, along with how our credit file affects us is a central feature to repairing our rating.

credit bureaus are coordinated and watched by the Federal Trade Commission under the requirements of the Federal Fair credit Reporting Act (FCRA) and follows up with the State Laws. when you experience credit Files with inconsistencies the Fair credit Reporting Act covers you in the sense that it necessitates the credit bureaus to delete or make the info obsolete on your credit report.

this guards you if you are a victim of Identity Theft, or almost every fictitious accusations made against you. the credit bureaus are needed by the Laws to list accurate information on credit Files by gathering the acceptable information against you or for you.

The law protects you in the sense that it regulates the credit bureaus by only permitting them to list negative reports against you for a limited time. The law Also regulates who can see your credit file. if you’re trying to find mortgage finance, license, public assistance, insurance, landlords, and courts can request your credit file without your permission.

However, if you are seeking a job under certain circumstances the employers will require a written authorization form from you. Utilities are under The law and these companies cannot deny you services despite the fact that you have a bad credit score.

as we discussed There is certainly many services able to check your credit report. the drawback Is Whenever your credit Is checked, points are added to your file. the more points added to your credit file affects your credit so it is best to be aware and only apply for what you need.

In case you have adverse credit and trying to repair your credit then you will be sure to call for copies of the credit file,and understand your score on the file, and if you think you happen to be a risk i suggest you apply for loans or credit cards after you have cleared your credit report.

Take Observation

Fixing your credit takes observation on your part. We often get two kinds of bills in the mail. Bills that are classified as past due and bills that happen to be recent. Truth be told ignoring your bills is only delaying and it doesn’t help fix your credit.

For those who have current bills and you have no overdue charges make sure you take care of these bills first, since by paying this tends to help you stay out of the credit bureaus. It’s important you have a steady cash situation to get out of debt. In case your job doesn’t pay enough to make ends meet, you might want to look for a job that pays better wages.

This will help you be free from debt faster. When you get your up-to-date bills looked after you next must give attention to your late bills. In the event you haven’t reached the credit bureau yet, deal with the bill immediately. Working closely within law, I can inform you that should you make even a minute payment towards a bill it might probably help you from hitting the credit bureau. The fact is, should you be making any type of effort to pay off a bill it would keep you out of Court.

The most important step to mending credit Is staying up to date with your bills if by any means possible. When you think you can not make a payment It’s wise to make contact with your creditor letting them know there will be a delay on payment. credit card companies often prefer that you just call them to work out a payment scheme and every now and then creditors will even decrease your monthly obligations, or maybe your bill. The very best solution then Is observing, and striving to repair your credit.

Many people have house payments, car loans, credit cards, and other forms of loans, including Utilities. There is certainly two types of debts that eat our money, so to understand these debts is a central feature to correcting your credit. Secured debts are any debts which have collateral attached. To explain your mortgage can be described as a secured loan that once you miss a payment you may be living in the streets. Car loans are a guaranteed way of getting back on your feet again for those who miss a few payments.

As a consequence, car loans are secured, and it Is your obligation to make payments. Some department store plastic cards are secured, for the reason that they ask you to definitely put up collateral if you miss payments on the merchandise purchased. Unsecured debts are Utilities, rent, personal loans from family or friends, student education loans, most major credit cards, and the like. Because of this it is more important to pay off secured loans vs unsecured loans. Secured loans again are house payments, car payments and so forth.

You might have more to lose by ignoring secured loans than what you have to lose by ignoring unsecured debts. Should you have a mortgage and think you cannot make ends meet, you need to check into a lot of the possibilities from your lender. There might be a second home loan available that gives cash back or other great benefits that could help you to get out of debt and repair your credit.

Don’t wait until it’s too late. For anybody who is seeing a poor outlook however it isn’t so out of hand that you just lost complete control, get up and take your control back. You will find mortgages available that provide overpayments and underpayments.

Therefore you are able to over pay one month against your loan and underpay against your loan the following month. Many of the loans even provide a vacation pay. If you don’t want to embark upon vacation you can use the bucks to pay for your mortgage. These types of loans can often be paid sooner than other types of loans.

When you have credit cards, it might be wise to make an application for a credit card that lets you pay off other cards. Often there is an answer to getting out of debt. Again, the most important tool for getting away from debt is always to keep a close watch over your bills, pay off any secured bills first, and work your way through each bill as you go.

Personal Loans – All You Wanted to Know

The main features are:
It is a unsecured loan suitable for any purpose Like:

– Education
– Marriage
– Medical purpose
– Purchase of Property or Assets
– Repay old loans
– Investments
– Holidays
– Gifts…etc.

It is hassle free. No guarantors or security /collateral required. Loans to salaried & self-employed. Special offers for Professionals like Doctors, Chartered accountants, Engineers, Architects, Company secretaries, MBA’s etc. Loans are available from Rs. 50, 000/- to Rs. 20 lakh. Repayment options from 12 to 60 months in easy EMI’s. Loans available against surrogate income of any auto, personal or home loan.

Minimum documentation & fast approval. What are the Various types of personal loans available? Personal loans can be broadly divided into income based and non income based. Income based loans are given on the basis of income per month/per year for salaried and self employed respectively. Non income based loans also know as surrogate loans are given based on repayment track records of existing personal loans, car loans, home loans and Credit cards from approved banks. Minimum instalments paid/Months on books required is 9-12 months.

WHAT ARE THE ELIGIBILITY CRITERIAS?
The eligibility criteria for salaried and self employed are:

SALARIED:
Applicant should be Indian citizens working and residing in Mumbai.
Minimum age required is 21 years and Maximum 58/60 years.
Minimum Work Experience-1 month in current company and 3 years overall.
Minimum Net Take Home – Rs. 20, 000/- per month.
Residence-either Owned, rented or company provided.
Telephone/mobile mandatory at residence.
Currently most of the banks are providing unsecured personal loans only to employees of Private Ltd , Limited and multinational companies.

SELF EMPLOYED:
Applicant should be Indian Citizens Working and residing in Mumbai.
Minimum age required is 23/25 years and Maximum 65 years.
Minimum 3 years experience in same business.
Minimum income Rs. 2. 50 lakh per anum.
Residence/Office -either Owned, rented or company provided. Either residence or office should be self owned.
Telephone/mobile mandatory at residence and office.
Partnership firms , Private Ltd. companies and deemed Limited companies are eligible.

HOW IS ELIGIBILITY CALCULATED?

Different banks have different ways of calculating the eligibility. In the case of Salaried generally most of the banks would calculate eligibility to be 1/1. 5 times of annual income. Factors such as existing loan liabilities , average bank balance, track record on existing loans , company profile & loan tenure also plays a part in deciding eligibility.
In the case of Self Employed’s the eligibility would depend on the turnover, existing track record, net profit, cash credit /overdraft limit enjoyed, line of business, cash flow, bank statement, existing loan liability amongst other things. Generally the loan amount is limited at 1. 25 to 4 times of cash profit generated less existing liabilities or a certain percentage of turnover less existing liabilities.

WHAT IS THE LOAN TENURE?

Loan tenure is the period within which the applicant wants to repay the loan. Loans can be repaid from 1 year to 5 years. The rule of the thumb being longer the tenure higher would be the loan eligibility and vice versa. The age of the applicant along with period of service left also influences the loan tenure.

WHAT ARE SERVICE CHARGES?

Service charges, loan processing charges , bank charges are various ways of describing the fees which the bank charges for processing and disbursing loans. It is deducted directly from the loan amount and is generally restricted to 2% to 3 % of the loan amount. It is a one time fee.

WHAT ARE THE DOCUMENTS REQUIRED?

SALARIED:

– Photograph.
– Pan card copy.
– Current residence proof.
– Salary slips for 3 months.
– Bank statement for 6 months.
– Appointment letter and proof of work experience.
– Sanction letters of existing/closed loans.

SELF EMPLOYED:

– Photograph.
– Pan card copy.
– Residence and office address proof(Either residence or
– Office should be self owned).
– IT Returns – CA certified copies for 2 years complete set.
– Business continuity/existence proof 3 years old.
– Business banking 6 months.
– All existing loan sanction letters.
– Qualification proof for professionals.

WHAT IS THE LOAN PROCESS?

One can apply for a personal loan any time in anticipation of a quick, hassle free and unsecured finance for any purpose. The verification process at residence and office is physically done within 2/3 days on submission of all documents required. There is a simultaneous credit check done to find out the credit history of the applicant in the bank applied as also other banks. If all the checks are positive the credit officer normally has either a telephonic or physical discussion with the applicant at his office/place of work.

Subject to the discussion being positive the applicant has to sign an agreement and also hand over PDC’c(Post Dated Checks) or authorization for ECS(Electronic Clearing System). The applicant generally gets either a direct credit in his/her account or receives a Draft within 2/3 working days after executing the agreement. The entire Process may take 5/7 working days.

WHO CAN APPLY?

Salaried individuals and Self employed individuals, Partnership firms, Pvt. Ltd. and Deemed Ltd. companies can apply.

What are the Income Criterias for Salaried?
A Salaried Individual needs to have Minimum NTH(Net Take Home Salary) Of Rs. 20000/- pm.

What are the income criteria for self employed?
Minimum Income of Rs. 2. 5 to Rs. 3 lakh per annum is the accepted norm.

What is the minimum and maximum loan amount?
The minimum loan amount for salaried is Rs. 50, 000/- and maximum Rs. 15 lakhs. For Self employed the minimum loan is Rs. 1 lakh and maximum 20 lakh.

WHAT ARE THE AGE CRITERIAS?
For salaried the minimum age is 21 years and maximum 60 years.
For Self employed’s the Minimum age required is 25 years and maximum 65 years.

Is a no income Proof loan available? 
Yes, salaried individuals and self employed’s can apply on the basis of existing personal loan, auto loan & home loan tracks on which minimum 9/12 EMI’s have been paid.

WHAT IS THE LOAN TENURE?
The minimum loan tenure is 1 year and maximum 5 years.

Is securities or guarantors required for a personal loan?
No security, hypothecation, guarantors or mortgages is required in a personal Loan.

Can a person staying on rent apply?
Yes, applicants staying either on owned, rented or company provided accommodation can apply. Permanent residence address proof may be required in case of rented/leased, company provided accommodation.

WHAT ARE THE INTEREST CHARGES?
Interest charges depends on various factors like the Loan Amount, Company profile, qualification & Income etc. It could vary from 16 % to 26% on a monthly reducing basis.

CAN THE LOAN BE PREPAID?
Yes, the loan can be prepaid after paying 6 installment.

ARE THERE PREPAYMENT CHARGES?
Generally all banks charge 4% to 5% of the principle outstanding as prepayment charges.

The Best Investment For Most Folks

The best investment for most folks is mutual funds. Investing money in these investor-friendly funds is the way to go for those who need help with money management and don’t really know how to invest in stocks or bonds on their own. Mutual fund investing is a great way to start investing, and a good way to invest money for your future. Trust me; you don’t need to be a rocket scientist or brain surgeon to invest money here.

If you are afraid to invest money because you feel you don’t really know much about how to invest … relax. You are in the majority. Most people know little about money management and investing. That’s the point of mutual fund investing. These investment packages are designed for the majority of the population who find investing money as comfortable as biting their tongue.

If you want to invest money and watch it grow, invest in a few different types of mutual funds. I’ve written numerous articles on the subject of mutual fund investing, and as a financial planner I recommended mutual funds to hundreds (or thousands) of my clients. Why? Because they are the best investment for most people who want to make more money than they can at the bank, at an acceptable level of risk.

Let’s get real basic and look at the advantages of mutual fund investing. No matter what you read some places, the disadvantages are few and far between if you go with one of the major mutual fund companies (I’ve listed my favorites in previous articles).

Professional money management and diversification are the BIG mutual fund advantage. What do you pay for this? Not that much if you invest money in one of the major no-load fund families like Vanguard, Fidelity or T.Rowe Price.

You can start investing with as little as a few hundred or a few thousand dollars.

Investing money in mutual funds is quite simple. You invest a dollar amount and the professional money management people who run the fund make all of the investment decisions for you. This is how to invest the simple and easy way.

Basically, you can invest in stocks, bonds and safe money market securities by investing money in mutual funds. That’s all the choices you need. You can pick and choose which stock funds, bond funds and money market funds to invest money in.

Or, if you don’t feel comfortable picking the different types of funds you can start investing with funds that invest in a combination of all three of the above investment categories (balanced funds). Now your only investment decision is how conservative or aggressive you want to be.

For years the investment of choice for most investors has been mutual funds. They are, in my opinion, still the best investment for most people.

There’s a big difference between saving and investing money. If you need a cash reserve and total safety keep some money in the bank. If you want to invest money and make it grow, go with mutual fund investing. For most of the people most of the time, mutual funds are the best investment.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.