Dec
27
Beyond a Bad Credit Car Loan: The Additional Costs of Driving a Car
December 27, 2007 | Leave a Comment
Getting a bad credit car loan is only the beginning for drivers with money problems. If you have a credit score below 620, you will be in the bad credit category. You can still get a car loan; you’ll just be charged a higher interest rate.
To offset the higher interest on a bad credit car loan, you need to do all you can to keep your payments as low as possible. Having a decent down payment or trade-in will help. Experts recommend putting at least 20% down to keep from getting upside down on your car loan. You can also extend the term of the loan. This will lower your monthly payment but you will pay more money in the long run.
If you are buying a new car, never pay sticker price. The sticker price or MSRP—manufacturer’s suggested retail price—is what the dealer wants you to pay for the car or truck. It is several hundred dollars higher than the factory invoice price, which is what the dealer paid. You can look up factory invoice pricing online. Remember, the less you pay for the vehicle, the less you have to finance with your bad credit car loan.
Besides your bad credit car loan payments, here are a few other financial figures you should be aware of:
Depreciation
Depreciation is the difference between the MSRP of a new vehicle and what it’s worth at a later date. If you buy a new car for $25,000 and it depreciates $3,700 the first year, that’s almost 15%. On most cars, the rate settles down to between 7% and 10% annually after the first three years. According to the U.S. Department of Transportation, the average life span of a vehicle is about 13 years. Even if you keep your car only half that long, you will still have it for several years after you have paid off your bad credit car loan.
Tags & Taxes
The purchase of a vehicle is subject to sales tax, unless you live in Alaska, Delaware, Montana, New Hampshire or Oregon, since these states don’t collect sales tax. You will also have to shell out for title, registration, tags and emissions fees. These can add up to several hundred dollars depending on what you buy and where you live. You can roll all these up-front costs into your bad credit car loan.
Insurance
Liability insurance is required in order to register a vehicle. Collision and comprehensive insurance is required by your lender to cover their investment. Your insurance rate will depend on the year, make and model of your vehicle and the deductibles you choose on your coverage. Other factors that influence your insurance rate are: where you live, your gender, your age, your marital status, and your driving record.
Fuel & Maintenance
In 1950, when AAA began doing their annual analysis, the composite cost of driving a car was 9 cents a mile, and gasoline sold for 27 cents a gallon. The composite cost per-mile in 2006 is 52.2 cents. That’s almost $8,000, if you drive a medium-sized sedan 15,000 miles. And this figure doesn’t reflect the recent hikes in gas prices. Nor does it include car loan payments.
Pre-approved Car Loan
One last piece of advice; get your car loan before looking for a car. Being pre-approved for your financing sets a realistic limit on your search. Knowing how much you can spend will also save you the embarrassment of finding a car and then discovering you can’t get the financing.
Pre-approved auto financing can be secured quickly and easily online. One site specializing in bad credit car loans is Fast Car Finance. They offer a no-obligation, free loan quote. Seeing how much you could be qualified to borrow is a good way to start shopping for the car of your dreams.
Mike Hamel is the author of several books and the Senior Writer for AIM Techs, an Internet marketing company that specializes in advanced SEM techniques and developing sites like http://www.lowowe.com
Tags: credit, bad credit repair
Popularity: 5%
Dec
26
Avail A Poor Credit Unsecured Personal Loan: Leave Your Bad Credit History Behind
December 26, 2007 | Leave a Comment
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A poor credit unsecured personal loan brings hope for a tenant with a bad credit history. Earlier bad credit was not considered good among lenders, but now they are easily offering loans to people with bad credit history. We all face some dire situations in our lives where we all look for some easier options and to avoid any financial crunch, we go for the loans.
As the name signifies, a poor credit unsecured personal loan can be availed without offering any collateral. Such loans come with higher rate of interest and shorter repayment period because a lender has to bear the risk in absence of collateral.
A poor credit unsecured loan is specifically designed for the borrowers who face difficulty to get loans because of their bad credit history or rating. Well, a borrower is declared with bad credit history, if he has experienced any of the following such as, arrears, bankruptcy, County Court Judgments etc. A borrower can avail a poor credit unsecured personal loan to satisfy various purposes such as debt consolidation, home improvement, holidaying, to buy a new car etc.
Loan market has been experiencing stiff competition because of the presence of numerous lenders. This competition has created confusion in the minds of the borrowers. So, it has become indispensable to do research on various loan plans before deciding upon one. Internet can help you get complete information about various loan plans.
Daniel Johns is the webmaster of http://www.unsecured-loan.loans11.co.uk
Provides loans such as unsecured loans, bad credit unsecured loans, unsecured loan online, secured loans, unsecured loan debt consolidation etc.
Tags: debt consolidation, debt consolidation loans
Popularity: 4%
Dec
25
Travel With Bad Credit Through Bad Credit Holiday Loans
December 25, 2007 | Leave a Comment
Mental stress, workload, anxiety all these thing are the results of continuously working. You think the more you work the more you gain, and this is also true. But in addition to that there is another fact that the more you work the more your mind looses its productivity. Holidaying would be a cure for regaining the mental tension. Finances could be the blockage which you may face while going for a holiday or buying a holiday package. A bad credit holiday loan can take you to joyride of your life.
What is a credit score? And how should I know my score?
A credit score is a mathematical figure calculated by credit rating agencies such as Equifax, Experian and Transunion. They will provide your financial report regarding your debts in the past. It will give you complete picture of loans taken or paid, unpaid credit card bills, arrears, CCJ’s, IVA’s, etc. So that you get a better hold of your finances.
You can also take help of financial institutions to get advices regarding how to improve your credit score with ease.
What is a bad credit holiday loan?
Bad credit holiday loans cater to your traveling needs with appropriate funding in the manner you choose. You can either go for a secured bad credit holiday loan or an unsecured one depending upon the circumstances.
What is a secured bad credit holiday loan?
If you are comfortable with letting your property to the lender as a security or collateral you can apply for a bad credit secured holiday loan. The money of the lender is secured; hence he is ready to offer his money at low interest rates and easy repayment terms and conditions. Your credit history will only affect the interest rates which you may get.
What is an unsecured bad credit holiday loan?
Those with the fear of loosing there asset in their mind could go for an unsecured bad credit holiday loans. These loans don’t require any collateral from you as security. Yes, you need to do some research work to find out an unsecured loan lender. But it will help you get the best deal. An unsecured bad credit holiday loan comes at a little higher interest rate due to presence of bad credit and absence of collateral.
How to apply for a bad credit holiday loan?
Applying for a bad credit holiday loan is easy as opening a bank account. You just have to fill certain form which you can fill online. After providing information regarding your name, address, employment status, amount you need. Once the lender is satisfied with your application he will contact you with his services.
Aldrich Chappel has been associated with get-secured-loans, since its inception. Having completed his Masters in Finance from Lancaster University Management School, he undertook to provide useful advice through his articles that have been found very useful by the residents of the UK. To Find Low rate holiday loans, UK bad credit holiday loans, UK holiday cash loans, UK holiday loans visit http://www.ukholidayloans.co.uk.
Tags: bad credit auto loan, bankruptcy
Popularity: 5%
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