Family Issues

Be On Your Best Behavior

Think of it like it’s your first date with the most beautiful girl in school, your very first job interview or meeting the folks of the person you love for the very first time – and let’s do pray that you won’t make a Ben Stiller imitation in Meet The Parents in this case, shall we?

Well, when it comes to car loan interviews, you have to make sure that you’re on your best behavior. If you look your best, you’re increasing the chances of your car loan application getting approved. Let’s be honest. There are still a lot of people who judge the book by its cover and let their first impressions – even if it’s somewhat superficial – influence their judgment.

If you don’t want your lack of fashion sense to affect the outcome of your car loan application, make sure that you’re looking like a million dollars the moment you walk inside for your car loan qualification interview! And if you don’t know how to look like a million dollars, then make sure that you ask someone who does!

Be Friendly and Calm, Not Desperate And Dishonest

Car loan companies are like The Queen of England’s secret military – spies are everywhere! Don’t bother lying about your financial situation because car loan companies can just as easily come up with the information in the blink of an eye and what then?

It’s better to be candid with your financial situation, even if it means admitting that you don’t have enough money for the first down payment required for your car purchase and the fact that you don’t exactly enjoy an excellent relationship with your bank manager.

Secondly, don’t by all means act desperate about getting your car loan application approved – even though it means the world to you! Car loan company representatives are very smart and intuitive so if they have any reason to suspect that you’re willing to do anything just to get your car loan application approved – trust me, they’ll surely take advantage of it!

Know How You Look And Rate In Their Eyes

Wasn’t it Sun Tzu who said that in order to defeat your opponent, it’s imperative that you think like them? Well, I’m not saying that this is in any way a battle but it pays to think also like a car loan company representative does. Know your credit rating so you’ll know what you have to repair before approaching a car loan company.

Tags: Budget, Mortgage, Borrow Money, Car Loan, Credit

It’s no big deal if you’re new to car loan shopping. These days, just about everybody do it - even people with money. And if you’re wondering why people who have more cash than they need still desire to apply for a car loan - well, that’s just a prime example of good financial management. If you have more than enough money with you, indeed, it’s better to ask for a car loan because that way, you get to have a new car and still be able to use your spare cash for other purposes like investing it in a bank or maybe purchasing something else!

The process to getting a car loan is simple.

First, you have to browse, shop and compare rates for car loans. You can do this either in person, by phone or through the Internet, which is the most convenient and usually the most popular choice for individuals because all the information you’ll need is just a click away. In comparing rates for car loans, do be diligent in taking down notes so that you’ll be able to study them more thoroughly later on.

Note down also the promotional offers of the car loan websites you visit to see which one suits your needs best.

Secondly, when you’re done comparing rates, it’s time to check what your FICO scores are. If you haven’t heard about FICO scores yet and have no idea what I’m talking about, then thank the Lord above that you’ve come across this article already because nowadays, FICO can make or break any application of yours that you’re hoping to gain approval. FICO scores can be found on your credit reports and credit reports are what most car loan companies base their decision on.

If you have high FICO scores – usually this means anything equal to or above 650 – that means not only are you sure to get your car loan application approved, you’re also entitled to have low car loan interest rates. Knowing that would safeguard you from predatory car loan lenders who still insist charging unfair rates on people with excellent credit records.

If, on the other hand, you have low FICO scores – usually, this means anything equal to or below 550 – that could spell a lot of trouble for you because most of the premier car loan companies tend to be cautious when dealing with individuals rated as such. At the very worst, your car loan application may be turned down point blank. Or it could get approved but you’re sure to be charged with high finance costs.

Tags: Mortgage, Car Mortgage, Credit, Buying a Car, Borrow Money

Whenever a person buys or leases a car, he seeks ways to finance this move.  Most auto financing involves a car loan, which entails a detailed check on his credit history and a tough interview about car finance.  When he undergoes all these to buy a used car, it is only fair that he also performs his own investigations about the car he is going to buy.  In fact, he should never consider buying a used car, which history has not been checked.  If he does, he may just end up paying for a piece of junk.

A used car must be checked for its title, registration, odometer, and the problems that it had weathered before it reached your eyes.  A “title check” will determine if the car is salvaged, flooded or rebuilt.  For example, many cars were destroyed during the 9-11 World Trade tragedy.  Many cars, too, were damaged during the hurricanes and floods.  These cars are salvaged by enterprising people.  The cars will be rebuilt and sold again at car auctions.  A title check will also discover if the used car has lemon history.

A “registration check” will determine if the used car has been used as a fleet car, or as a taxi, or even as a police car.  If the used car has been utilized in any of these, then it is safe to say that within a given period of time, this particular used car has covered more miles than the average privately used car.  A registration check will also reveal if the used car was ever rented or leased.

The car’s odometer is an instrument used to measure the distance traveled by a vehicle.  An “odometer check” will show if the odometer has been broken or fraud.  It will also show if it has been rolled back or rolled over.  If the odometer has been tampered, this does not bode well for the next owner of the used car.  The car may be older than what the dealer is telling you.  Or it may have mileage problems.

A “problem check” will determine if the used car has sustained fire damage or an explosion.  It will also show if it has been involved in a major accident.  The fire or accident may have inflicted a still undetected damage on the used car.  It is also quite creepy to use a car that has cradled dead bodies before.  A problem check will reveal if the car has been stolen.  A car that has been stolen may no longer have all its original parts.

A used car may give you more problems than you can manage.  But not all used cars are damaged, leased or stolen.  This is why there are still many people who take out car loans to buy a used car.  To be safe, the potential buyer must order a vehicle history report.

Tags: Mortgage, Car Payment, Car Mortgage, Buying a Car, Money Lending

Why is gap insurance considered as a financial safety belt?  Simply put, it keeps you from being financially ruined when disaster hits your car.  For example you are in this situation.  You bought a late-model car three months ago using a car loan with a regular car insurance.  The car costs $30,000 and you have already made three payments of $900 each month.  Then, disaster strikes.  An electric post falls and slams down on your car.  The car was flattened to half its height.

Immediately, you reported it to the auto insurance company, which in turn play with numbers, mileage, depreciation, market values, and other related stuff.  After a couple of days, the adjustor informs you that the worth of your car at the time of the accident is $25,000.  This is the amount that the auto insurance company will provide you.  But the finance company that gave you the loan will still consider the car to be worth its original price.  They also play with numbers, interest rates, taxes and license fees.  Then they come up with the amount of $38,000. This is the amount that you need to pay them.  If the auto insurance company releases the $25,000, where will you get the remaining $7,000?  Your car is already a wreck but you still owe the finance company.

You need not face such a dilemma if you have a gap insurance.  With the gap insurance, you can ignore the difference between the amount covered by the regular car insurance and the amount you owed the car loan company.  This difference is called a “gap” and the gap insurance bridges it so that you need not rack your head for additional financial resources.

A car lease contract must also have a gap insurance.  It is a feature that prevents you from draining all your finances.  Some dealers who lease cars don’t offer a gap insurance.  This is okay as long as they include a “gap waiver” in their lease contract.  This waiver declares that you are no longer responsible for gap charges that may occur when your leased car is wrecked.

When you get a gap insurance, determine how much is offered in the gap policy.  You should also know how much will be added to your monthly bill.  A gap insurance, for it to be recognized, must be accompanied with comprehensive insurance policies that cover collision.

Sometimes, a gap insurance may no longer be needed if the terms in your regular auto insurance policy indicated that the company will pay off the full amount you owed from the car loan lender.

Tags: Money Lending, Buying a Car, Car Loan, Budget, Borrow Money

Most banks have strict policies about whom they will lend their money and for what the money will be used.  They will not grant you a car loan for a used car which is older than five years.  They charge higher interest rates on loans for used cars than on loans for new cars.  And very rarely do they grant loans to people who fall under the “subprime” category.

A person who is considered a subprime borrower is one who has a blemished credit history.  He may not be paying his bills on time or he may overextend his credit card.  A subprime borrower is usually someone who has a credit score below 620.  If your loan application has been rejected on the grounds that you belong to this credit-unworthy group, does this mean that you cannot borrow anymore?

You may still get a car loan if you will look for lenders that grant financing to subprime borrowers.  Avoid finance companies that advertise “1.9% interest**”.  Notice the sign (**)?  Below the big ads, written in fine print, the ** means for prime borrowers only or for people with excellent credit.  Clearly you do not belong to this worthy group.  People with bad credit will have less privileges when getting a car loan.  The interest rates are decidedly high.  You may opt to search for online lenders. But there are measures you may take to improve your circumstances.

The first thing to avoid is to rely completely on the car dealer.  He will always get a certain percentage out of car loan transactions.  In fact, it will be advisable if you are able to secure a car loan before you allow a car dealer to be within a shouting distance from you.  When you look for a credit grantor, don’t accept the first one you encounter.  Compare interest rates offered by lenders, but don’t accept the average rates they give.  A lender may offer a lower interest rate for a person with a credit score of 800 and a higher interest rate for someone with a score of 600.   Ask for specific rates. You may also approach credit unions and banks where you have a current account.

You also have a chance to improve your “category” by checking your credit report and reforming your credit score.  For example, there might be an error in the information found in your credit report.  This error may have been the one responsible for the black mark on your credit history.  You must immediately have this error corrected by informing the credit bureau in writing.

Credit scores can change.  If you pay your bills on time and if you always stay within your budget, then your credit score will likely improve.  Once you have a higher number, you may get a lower-rate refinancing for your car loan.

Tags: Car Loan, Money Lending, Budget, Car Mortgage, Borrow Money