Family Issues

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

If you find yourself worried about undergoing credit checks and having your applications for mortgages, loans, credit cards, insurances and the likes approved then maybe you need to learn more about credit repair. True, there’s a lot of controversy going on about credit repair but it’s really up to you whether you repair your credit by yourself or with the help of a professional and whether you do things legally or not. And for the record, I do advise you to stick with legal and ethical means because the government sees just about everything.

Now, if you’re convinced already about the merits of credit repair and just wondering what steps would you need to take to fix bad credit, here is what you must do then.

The first step to take on the board is approaching credit bureaus or agencies and asking for a copy of your credit report. A credit report shall cost you some dollars but don’t think much of the fee because this is truly a necessary step to take – in fact, I wouldn’t ask you to do anything unless it’s needed.

However, if you only want to stick with the minimum, you could simply take a copy of your credit reports from any of the three major credit bureaus in the country – Equifax, Experian and TransUnion – but I truly advise you to take at least a copy from each credit bureau. A lot of finance companies after all base their decisions on the ratings given by the three major credit bureaus. Some would choose one of the three or take the average.

Now that you have your present FICO scores on your hand, it’s time to evaluate how you did. If you have a credit score that’s above 680, guess what? You’re completely safe.

You have no need at all for credit repair so now, all you have to do is sign the application form and just wait for the dough to roll in. If, however you have a FICO score that’s below 680 but above 550, you’re considered as “sub-prime” and if you want to qualify for lower interest rates then you could still go for credit repair. On the other hand, with a FICO score below 550, my friend, accept the fact that you really need to repair your credit.

The next step is quite common. You have to check for errors and inconsistencies in your credit report. If you spot any mistake at all, it’s time to dispute such items with the credit bureaus. If you don’t have the guts for such a task then maybe, it’s time to ask for help from a professional credit repair company.

Tags: Credit Cards, Unpaid Debts, Debt, Credit Repair, Credit Reports

If you’ve just started working and saving but you desire to have your own house and own car, you may not need to wait for a decade or so for your dreams to come true. But that’s only possible if your mortgage application gets approved.

Mortgage has been viewed by many as a form of lifesaver especially today. It’s getting harder and harder to come up with payments for the monthly bills so how else can ordinary consumers afford to have their dreams come true? With the help of mortgage companies, however, they may just have that dream house and car before the year’s end.

What Do You Have To Know About Mortgages?
If you’re new to the mortgage scene and absolutely do not have a clue about where and how to start then you’ve found the right page to learn more about mortgages. Here, we shall be introducing you to the topic of mortgages and give you information about everything you have to know, from the types, to tips on choosing a reliable mortgage provider to suggestions on what you should do in order to qualify for a loan or mortgage.

Types of mortgages
All you have to do is open an accounting or finance textbook or browse the internet and right away, you’ll get to know about the different types of mortgage. But more often than not, the descriptions provided are somewhat too confusing or too technical for lay people to understand. We know that so with each type of mortgage we’ll be explaining, we make sure that we do so simply and clearly.

Base Rate Mortgage
We’ll start with a fairly easy one, the base rate mortgage. This type of mortgage has its roots founded on the rates provided by the Bank of England. I’m not sure if you’ll be able to find a mortgage provider in the United States who offer this type of mortgage but when you do, you’re at least familiar with how it works. Anything else you have to know, simply ask a solicitor – it’s the British way of calling lawyers, by the way.

Fixed Rate Mortgage
The interest rate for the mortgage you’re applying for shall remain fixed or constant.

Variable Rate Mortgage
The interest rate for the mortgage you’re trying to qualify for varies and is dependent on the wishes of the mortgage provider.

The Right Mortgage Company
Simply put, don’t just trust any mortgage company and don’t sign anything without reading the contract thoroughly.
How To Pass Mortgage Qualification Interviews
Never lie about your finances and check your credit ratings first before passing your mortgage application form.

Tags: Obtaining a Mortgage, Family Planning, Wedding Invitations, Borrow Money, Credit Repair

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: Money Lending, Credit, Borrow Money, Car Loan, Car Mortgage

There’s just no use to dodging and looking over your shoulders, amigos. At this age and time, it’s impossible to escape the clutches of finance companies and never have to undergo credit checks. Look at the bright side at least. Credit checks are done for your own protection, too.

Put yourself in the lender’s position. Without credit checks, credit bureaus and credit reports, how would you be able to determine which individual would be more probable to pay off their debts on time? And anyway, undergoing credit checks isn’t as terrifying a process as it’s usually portrayed to be. Thanks to credit repair, that is.

Haven’t heard about credit repair? My, oh my, good thing you’re reading this article then. With credit repair, all your fears about credit checks would be resolved. Interested? I bet you are. And so, without further ado, here are the steps you could take when fixing bad credit.

See What They See – Why let them surprise you when you could know the details about your credit report beforehand? If you know that you’re going to undergo a credit check in the near future, take the necessary steps to make sure that it’s a cinch you’ll be able to pass the credit check. How do you do it? Simple. First, check the directory for a list of credit bureaus or agencies. Getting a copy of your credit report will always cost you some bucks so if you don’t think you can afford to procure all the credit reports done on you, you could at least stick with the reports made by the three major credit bureaus of the United States – Experian, Equifax and TransUnion.
When you’ve gotten the credit reports done on you, it’s time to get nasty and see what kind of dirt they’ve dug out about you. Oh. Do you see an item containing details about your declaration of bankruptcy more than ten years ago? If so, that’s an item you should highlight because according to the rules – and we’re playing by the book here – credit agencies aren’t allowed to list down details about bankruptcies more than ten years old unless you’re borrowing or applying for something that’s worth more than $150,000.

If you think you’re not ready to get nasty and sometimes – act pathetic – towards the credit bureau representatives, creditors and bank managers, maybe, maybe it’s time to ask help from credit repair companies. I know there’s been a lot of controversy over the practices of such companies but as long as you’re employing the help of a reputable company, I don’t see any harm from that.

Tags: Bad Credit, Unpaid Debts, Credit Cards, Credit Repair, Bankruptcy