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Besides racking your brains out on selecting what’s the ideal car to purchase, you also have to consider what type of car loan you should apply for as it could make or break you in future rainy days. There are basically three types of car loans that you can choose from and each will be discussed thoroughly below to help you decide.

FIXED RATES
The term may be self-explanatory but we’ll discuss it all the same for the benefit of those who are still unaware. Car loans of this type charge customers fixed rates. Ergo, you need not worry about calculating for each month’s payment. And even when economic conditions change, your car loan rates do not get affected. On the other side of the coin, however, your fixed interest rate is comparatively higher than others. And if market conditions change for the better, you can only sigh in dismay because your car loan is an f-i-x-e-d thing so there’s no chance of your interest rate decreasing.

ADJUSTABLE RATES
Again, the term may be self-explanatory but I did promise to be thorough in discussing this, didn’t I? Car loans of this kind possess variable interest rates. Flexibility is the key advantage with this type of car loan. Your initial monthly payment is also lower compared to others but of course, this may go up or down in proportion to market conditions. For short-term car loans, this is easier to handle than other types of car loans. It’s also easier to qualify for a car loan with adjustable rates when you’re asking for a high amount.

STATED INCOME LOAN
This car loan type does not require verification of your income status. Then again, you must be willing to pay for higher interest rates. Furthermore, the LTV or loan to value must be low in order for you to qualify for this type of car loan.
WHICH TO GO FOR?

As with almost all open-ended questions, the answer depends on a case to case basis. You alone can say which car loan is best for your situation. Are you willing to risk taking a car loan with adjustable rates when there’s every chance that economic conditions can worsen? Or would you go for a car loan with fixed rates and just grit your teeth when you’re paying high interest fees while everyone else is enjoying low interest costs?

Tags: Mortgage, Car Loan, Car Mortgage, Car Payment, Buying a Car

Because of the need of many people for quick cash or a way to procure things even though they don’t have money. There are now many emerging credit card companies for every person’s different situation. One kind of Credit Card Company is those that see a niche opportunity for people with bad credit history. There are also credit card companies that capture as specific market like students and for businesses.

Credit Cards for People with Bad Credit History:
For whatever reason, you may have encountered problems financially that’s why you weren’t bale to pay your bills. If this happens, you might think based on traditional bank’s response that you will no longer be bale to get a credit card. Now there are a number of options for people looking for a credit card if they have bad credit history or currently fixing it.
1.    Secured Credit Cards
a.    It requires a collateral before your card can be approved. You would need to make a predetermined amount of deposit to be able to have a credit card. Generally, the deposit should be the same as the amount you would want to borrow. Collaterals that the company can accept any items that have monetary value such as jewelries, cars, stocks, etc. These are used by people who are building their credit history.  You would need to understand that the lending company only wants to have a security payment because you are a high risk client.
b.    These cards only have low credit lines usually up to $250. There are also additional fees, so it is important to read all the terms and conditions before signing on to lend the money. Down the road, you can ask to increase the credit, especially if you pay your bills on time. The additional fees are worth it if you are able to rebuild your credit rating.

2.    Prepaid Credit Cards
a.    These are not credit cards but are like credit cards only. They are accepted wherever credit cards are accepted. There are no finance charges and help avoid you from having debts because all the purchases are aid beforehand.
b.    You will determine your own credit line. Usually based on the money he or she has transferred to the card.
c.    The risk of running credit and debt becomes smaller and one can learn to budget.

Specialty Credit Cards:
These types of cards are for unique individuals that will cater specifically for their needs.

1.    Business Credit Cards – cards for business executives and business owners. These cards have the same features as s standard credit card with additional features like special business rewards or savings, personal and business expenses are separated, management of expense reports, higher credit limits and additional cards for employees.
2.    Student Credit Cards – because students have little or nor credit history, this kind of card is designed for students to solve that problem. This card will help build the credit history of the student.

Tags: Master Card, Credit Card Application, Debit, Credit, American Express

If it’s all just a matter of wanting and no consideration at all for something as practical as money, then that would be a no-brainer. Who would go for Greek heir hopping Paris when there’s always one man loving Jessica Simpson-Lachey? But since we live in the real world, we have real considerations and we must therefore listen to what our minds and pockets say and not what our hearts and vanities are wishing for.

NEW IS GOOD
Aesthetically speaking, a brand new car is way better than a used car. Of course, it means higher car loan costs but for some people, the sleek beauty of an Aston Martin easily compensates the permanent hole in their pockets. But there’s sense to taking out a car loan for a brand new automobile, also. A brand new car would mean less maintenance costs. Whereas a used car has been owned by somebody else and may therefore have defects due to negligent care, a brand new car is exactly that: brand new. With car loan payments to worry about, would you still care to worry more about maintenance costs? Because that’s not far from reality if you purchase a used car instead of something brand new.

Brand new cars also last longer, precisely because they’ve never been used, unlike secondhand cars. Taking out a car loan for a brand new car can be considered more sensible because you know you’re getting your money’s worth and with proper care, it may last even longer than its life expectancy period.

BUT OLD IS NOT BAD EITHER
A car loan for used cars would translate to lower monthly payments compared to what you’d pay for an auto loan for a brand new car. If you manage to find a used car that you’re assured comes with no major defects then give yourself a pat on the back because you’ve saved yourself hundreds of dollars in terms of interest costs. Secondly, shopping for used cars gives you a wider selection to choose from compared to the inflexible prices of brand new cars. You’d have the opportunity to make the best out of your car loan by picking out the optimum car for yourself.

LAST WORD?
As mentioned earlier, your finances play an essential role in your decision. Car loans are there to help you out in purchasing a car but wouldn’t you want to make the best out of your loan and not just choose an automobile mainly because it’s the latest car to drive? Choose well and choose wisely. Happy car hunting!

Tags: Car Mortgage, Car Loan, Car Payment, Buying a Car, Budget

Nowadays more and more people are looking for credit cards to help them procure something even though they don’t have money.  If you have a credit card or thinking about getting one, you learn to use it responsibly and discreetly. Before also applying for credit cards you should also learn the type of card that you would need. There are now different types of cards that cater to various situation of the person who needs it. Here are the following types.

1.    Standard – these are the typical credit cards that are easily available from banks and other financial institutions. These cards are unsecured. The annual percentage rates they offer vary. It could be offered or be computed.
a.    Balance Transfer – it allows consumers to transfer the balance of a purchase with a higher interest rate to a card that has a lower interest rate. It helps the user save money from the interest charges. Be sure to read thoroughly the terms and conditions for each card. Their offers vary.
b.    Low interest – the APR they initially offer will e low but will eventually change after a certain period of time. If you’re lucky you might find a low fixed interest rate. I.e., the items that you have purchased for the 1st 6 months of the introductory period will have 5% interest. Any balance or purchases made after that will have 10% interest.

2.    Reward programs – the user is given rebates, cash back rewards or other incentives for purchases made on the card. This will tempt some users to use the card more.
a.    Airline mile – this is like a frequent flyer card. Every time you use your card, you will have an additional point that will be added on your airline miles. This reward plan is very costly to the credit card company so they usually charge an annual fee. Remember to read the details of this reward program. This type of card is great for people who love to travel.
b.    Cash back – as the name implies, you are given a certain amount of cash every time you make purchases with the card. It goes like this, the more purchases you make using your card the more cash rewards you get. The rates are usually 1% of the total purchase, excluding the interest and finance charges. This type of card also has an annual fee. This type of card is suggestible for people who pay their debt on time.
c.    Reward credit cards – similar to cash back cards but just offer different rewards. Their rewards include gas rebates, entertainment rewards and store discounts for specialty store cards.

Tags: Credit Cards, Visa Card, Spending Money, Credit, Budget

There are several reasons why many people obtain the help of credit repair companies.  Some companies claim that they have the ability to remove all negative information from your credit report or allow you to obtain a higher credit.

But what are the signs of a legal credit repair company? Following are the characteristic of an illegal credit repair company:

1. Solicit large up-front fee costing several hundred dollars. Many legal credit repair companies charge a minimal service fee, and they don’t charge the fee until the service has been completed and credit report corrected.

2. Claims they can erase true, negative information from your credit report.  In a short period of time, negative information can be taken off your credit report.  But when the information is incorrect, these will be reflected in your reports again.  Under the law, information must be removed by the credit bureau while it is under investigation.  Repair companies give you the credit report for the succeeding month with incorrect information removed.  After charging a service fee and you apply for a mortgage, you find out that the negative information has not been removed and find yourself out of cash.

3. Gives assurance of bankruptcy removal from your credit report. Legally speaking, there is no way to remove bankruptcy.  A fraudulent way is by asking for your bankruptcy file from the courthouse archives then protesting the listing on your credit report.

Bankruptcy will not affect your ability to obtain credit.  However, other negative records can prevent your ability to get credit.

Finding A Legitimate Credit Repair Company

Valid credit repair agencies or credit counselors can assist you execute perfectly legal remedies in credit repair.  Letters can be written addressed to the creditors on your behalf and negotiate to have negative information updated and have incorrect information erased.

“Do-it-yourself” credit repair is relatively easy if you have the tools you need.  The warning signs just mentioned above can provide the assistance in “Do-it-yourself” credit repair.  Making sure that the credit company you will approach is not a scam or illegal.

Another recommendation is by consulting you’re the Attorney General of your state to be able to check out the companies that are legitimately doing business.  Check out every detail and information that you can obtain regarding the repair company.  Find out if there is any existing complaint on the records of the company.  If it does, avoid dealing with these companies and save your money in the pocket.

Tags: Unpaid Debts, Debt, Credit Reports, budget, Bad Credit