Tag Archives: credit score
How to Use the Internet to Save on Car Financing
So you want to get a car. Each year, a lot of consumers submit an application for loans to fund their car purchase. A car can be considered as expensive investment, next to your house. How would you make certain in which will find an inexpensive car loan deal to save cash? Consider the following pointers:
Search on the internet. The internet is an excellent tool for comparing deals – regardless if you are trying to find a personal loan, a car loan, or mortgage. You can simply compare car loan lenders online by going to a brokers website or looking into a car loan companys website. Most lenders offer free loan quotes to help you have a better idea regarding the cost car financing will cost you.
Check the loan providers background. Take note that its not all lending companies that offer car loans are legitimate. In pursuit, you will come upon fraudulent lenders that provide attractive car loans especially to individuals with bad credit. If you cant get approved for the regular car loan because of low credit score, quick car loan advertisements can be enticing.
Before requesting for any car loan quote, take the time to research regarding the lending companys reputation. Is the lending company reputed to provide reasonable loans to consumers? How long has it been providing financing services? Is it licensed and identified by the government?
Can it be registered to the Better Business Bureau (BBB). You can confirm the BBBs site to look at lending companys rating and gratifications. If there are complaints or lawsuits filed against a lender, you will be able to check it on the BBBs record.
Do further research. After exploring the market, define your options to at the very least three different car loan lending companies. Be ready to execute a bit more investigation about each lenders policies, conditions and terms.
Read the terms and conditions to make sure that you won’t be subjected to hidden fees and unreasonable terms. Remember that each finance company possesses its own set of rules so its necessary for you to understand the actual terms right away.
Avoid multiple loan applications. Dont try your luck or see which lender grants the fastest approval by submitting multiple applications to several car finance companies. Do your research first and when you have found a prospective lender, thats the only time you should submit an auto loan application.
Be sure to look into the lenders requirements particularly about your personal credit score and credit history. Some car loan lenders have strict standards and only grant financing to people with good or excellent credit. If you have an imperfect credit score, submitting the application to wrong lender can result in rejection.
Look at your credit rating. It is likewise a smart idea to order a copy of your personal credit report from the three major credit bureaus (Experian, Equifax, TransUnion) just before submitting your car loan application. This way, you will be aware of one’s exact credit score. If you might not yet received your free report this year, you can order it from www.annualcreditreport.com.
Debt Settlement, the Better Debt Relief Approach
In our struggling economy, indebted Americans are looking for a way to relieve themselves of financial and emotional stress. Many debt relief options have become available. Amongst them are the popular three: debt settlement, debt consolidation, and credit counseling. With these services being promoted so heavily, how can one choose and then not regret their decision later?
To make the proper choice, we must view these options from both good and bad perspectives, as well as individual situations.
Let’s start with the bad. Credit counseling and debt consolidation appear on your credit score stating that you are “currently enrolled in debt counseling program” which poorly reflects on you when applying for new credit. Debt settlement lowers your credit score because it requires a four month delinquency to negotiate. The accounts enrolled in debt settlement are closed (questionably bad as it can save many from repeating their mistake).
Regarding the benefits, credit counseling and debt consolidation programs allow you to be debt free within five years with a lowered interest rate (approximately 5%) saving you a good deal of money over time with the monthly payments being put into one single payment and slightly lowered. They also allow you to keep your accounts open (also questionable). Debt settlement allows you to be debt free within 12-36 months, while paying 55% of your total debt (in most cases) and 0% interest, resulting in savings of more than 60% because of no interest accrual. The payment is also consolidated in one single monthly program payment while being lowered substantially (by up to three times less).
Although debt settlement lowers your credit score initially, the purpose and goal is to get you debt free as soon as possible, and help you start rebuilding your credit score immediately – by staying on time with secured loans like mortgages and auto payments (which reflect the most on your credit score).
Most importantly, always remember to view a company’s Better Business Bureau profile for a high rating and a powerful track record. You can never be too careful about who you’re trusting your finances with!