Any person who needs help with debt knows the hopeless feeling that the good old days are well over with. You shudder at the thought of letters in the mail — bills. Your email is stuffed with credit card invoices, late notices, and overdraft fees. But probably the worst nuisance about of the debt are all the messages and phonecalls from creditors. They wait until the afternoon and night to call, because they know that’s when most people are home. Have you ever had dinner ruined by a stressful phonecall demanding your overdue current payment? You need help with debt and it’s time to get it.
Despite the government statistics, inflation is above and beyond the reported rate of 3%. In fact, the average household income has steadily decreased for five years in a row. Despite this, consumption continues to increase. How can this be? The answer is, people have been increasing their number of bills without finding help with debt. About 90% of US citizens don’t have enough saved for retirement, yet constantly buy, buy, and buy more.
But what reliable options are there for getting help with debt? Today there more people in debt thanks to black holes like credit cards, mortgages, auto loans and more. Thanks to a sky rocketing interest rate, many of us just keep slipping deeper into the problem without bothering to look for help with debt. Instead of climbing out, they’re just sinking farther and farther in. This means the only way to get help is by using some type of debt relief service, whether small or large.
Help With Debt
09-01-2010 by adminCar Loan Bad Credit History – Improve Credit Rating with an Auto Loan
04-01-2010 by adminIf you have a low credit score, opening a new credit account and maintaining a good payment history can help boost your rating. Bad credit has several consequences. Those with a negative rating may have trouble getting approved for a credit card. Moreover, bad credit validates higher rates on auto and home loans. Because auto loans can quickly raise credit scores, a bad credit auto loan can be beneficial.
What Causes Bad Credit?
Credit histories are determined by how well we maintain our credit accounts. If you pay bills on time and never miss a payment, you likely have a high credit rating. On the other hand, paying creditors late, bankruptcies, foreclosures, and repossessions will result in a lower credit rating.
Bad credit is not permanent. In fact, it is realistic to improve credit rating within twelve months. After a bankruptcy, it is suggested that persons immediately apply for new credit. This usually entails applying for a secured line of credit.
How to Get an Auto Loan after Bankruptcy
Getting approved for an auto loan with a subprime lender is very possible following a bankruptcy. Auto loans are secured, thus lenders are more apt to offer money to individuals with a low credit rating. Worst-case scenario, the lender simply reclaims the vehicle and re-sells it to recoup their loss.
With an auto loan, the ultimate goal should be to raise a low credit score. Hence, it is important to maintain regular payments. Besides, an improved credit score will make it possible to refinance for a low rate.
Tips for Getting Approved
When searching for an auto loan lender, ask for quotes from multiple lenders. If possible, submit a quote request through an online auto loan broker. Brokers work with numerous lenders, and are capable of finding the best financing package for your circumstances.
Try using one of ABC Loan Guide’s
Recommended Bad Credit Auto Loan Companies.
To improve approval odds and chances of getting a reasonable rate, apply with a down payment or co-signer. On average, down payments are about 10%. However, higher amounts may knock a few extra points off the interest rate. If using a co-borrower, select a person with a high credit rating.
Auto Title Loans – How Much Can You Borrow Against Your Car Title?
27-12-2009 by admin
Auto title loans are subprime loans given to borrowers with bad credit who use their auto equity as collateral, allowing consumers to borrow money based on the value of their vehicle.
When you apply for an auto title loan, you’ll have to show proof that you hold the title of your vehicle. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan.
Some lenders may also require proof of income and/or conduct a credit check, bad credit does not disqualify you from getting approved. Auto title loans are typically considered subprime because they cater primarily to people with bad credit and/or low income, and they usually charge higher interest rates than conventional bank loans.
How much can you borrow with Auto Title Loans?
The amount you can borrow will depend on the value of your vehicle, which is based on its wholesale price. Before you approach a lender, you need to assess the value of your car. The Kelley Blue Book (KBB) is a popular resource to determine a used car’s value. This online research tool lets you search for your car’s make, model and year as well as add the appropriate options to calculate the vehicle’s value.
Estimating your vehicle’s worth will help you ensure that you can borrow the maximum amount possible on your car equity. When you use the KBB valuation as a baseline, you can accurately assess the estimated pricing for your used car.
The trade-in value (sometime equal to the wholesale value of the vehicle) will be the most instructive when you’re seeking a title loan. Lenders will factor in this calculation to determine how much of that value they are willing to lend in cash. Most lenders will offer from 25 to 50 percent of the value of the vehicle. This is because the lender has to ensure that they cover the cost of the loan, should they have to repossess and sell off the vehicle.
Different states have varying laws about how lenders can structure their auto title loans. In California, the law imposes interest rate caps on small loans up to $2,500. However, it is possible to borrow money in excess of $2,500, if the collateral vehicle has sufficient value. In these situations, lenders will typically charge higher interest rates.
When you cannot depend on your credit rating to get a low-interest loan, a higher-limit auto equity loan can get you cash in time of a financial emergency. An auto pawn loan is a good option when you need cash urgently and can offer your car as collateral.
Make sure you find a reputed lender who offers flexible payment terms and competitive interest rates. Most lenders will allow you to apply for the loan through a secure online title loan application or by phone and let you know within minutes if you’ve been approved. You could have the cash you need in hand within hours.
Auto Title Loans – Learn More About Them
14-12-2009 by admin
There are many financial products related to vehicles. Auto loans and auto leases are the most common ones. But there is a third financial product related to vehicles which is just as useful but half as well known as the previously named ones: auto title loans. An auto title loan is a very versatile type of loan which works very much like a payday loan, with the only difference that it belongs to the secured loan group.
This article focuses on car title loans, it is an explication on their very nature, on what they entail as financial products and on the obligatory requirements for approval.
Car Title Loans
This type of loan is, as stated before on this article, a secured loan. You borrow a sum of money by pledging your car as a security for the loan. The amount of money you can apply for ranges between $601 and $2500 more or less. As you can see, this loan can be compared to a secured form of a payday loan. It is also a short-term loan, usually lasting between 15 and 30 days at most. If you fail to repay it at the end of the loan, you will be able to “roll it over”. If “rolled” over, the interest rate on the loan will accumulate.
The tricky thing about this loan type is that if for some reason you fail to repay it after it has been “flipped” the maximum amount of times (by law, 6 times), you may have your car repossessed. The interest rate on car title loans, just like in payday loans, is very high. Perhaps even higher than on a cash advance loan. The normal rate is about 25%, or a 300% annual rate.
Vehicle title loans are meant to be used only in an emergency, otherwise, if used regularly for common purchases, they constitute a very bad deal for the consumer.
Auto Title Lenders
These are the lenders offering auto title loans. They make an awful high amount of profit from the interest rate they charge on the loan, and sometimes will do anything to entice you to apply for one of their loans. They will focus on bad credit and elderly people. If you are going through a rough patch and you are in need of money, applying for a title loan involving your car probably will not be the best idea. Try and find other sources of finance because in the end, the interest rate will end up eating up for debt, and you will not benefit from this at all.
Often, these lenders call themselves 601 lenders. Why is that? Because they can only charge high interest rates if the loan is above $600.
Vehicle Title Loan Requirements
Qualifying for this type of loan is very easy. It might be a bit harder than qualifying for a cash advance loan, but easy nonetheless. The first and most important requirement is a car. You must be a car owner (which must be free from liens against it) and be in possession of the title. You must also be employed and be an American citizen with at least 6 months of residence in your current home.
Auto Loans for Low Income – Bad Credit Car Financing For Everyone
04-12-2009 by admin
In this article we are going to take a closer look at getting an automobile loan when your credit score is hurting. Everyone loves going car shopping, but if you are suffering from the deleterious effects of a low credit score, shopping for a new car can be a daunting experience. And if you add in the extra stress of dealing with a low income, quite frankly…trying to find the perfect car becomes more of a nightmare, than a quest for a dream ride. So if you are facing a new car purchase, and have some anxiety about your qualifications, read on as we explore your options!
The very first thing you need to understand is this: Having bad credit, and a low income is NOT going to bode well for your pending purchase. You can certainly get a car regardless of your personal financial situation..simply because there will ALWAYS be lenders out there willing to offer loans. That doesn’t mean that the loan you are going to get will be favorable, or a smart financial decision. In 2008, with the glut of foreclosures and credit card defaults riding at 20 year highs, the competition for even the high RISK loans is fierce. So what should you do? Quite simply, my advice is this:
First, you NEED to work on your credit report. Fixing your credit is not a difficult process, and often times you can raise your score sufficiently to qualify for better quality loans in a very short time.
Secondly, establish a baseline for what you are willing to tolerate from an interest and rate term BEFORE you go shopping. Do not walk into a car dealership resigned to accept the “best” rate they are going to provide. If you apply some self restraint, research and discipline before you enter the lot, you will have a far better sense of what is fair, and what is simply oppressive both in the price, terms and rate your local dealer will be willing to offer.
Simply being prepared, and having a firm understanding of your rights, and situation WILL go a long way in making sure you don’t accept a bad deal – and of course, in a perfect world you would improve either your score, or your income before filling out the loan!