http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/automotive/cars/buying-a-car-with-a-home-equity-loan-an-alternative-to-bad-credit-car-loans.html http://www.articletrader.com/automotive/cars/buying-a-car-with-a-home-equity-loan-an-alternative-to-bad-credit-car-loans.html Tue, 08 Jan 2008 00:00:00 -0600
Purchasing a Car with a Bad Credit Loan

If you have bad credit, the usual method for getting finance to buy a car is applying for a bad credit car loan. As stated at the beginning of this article it is somehow difficult to get finance with bad credit from car dealerships. Nevertheless, some car dealers may be able to provide you with finance but they will probably charge you very high interest rates.

Banks do not usually provide finance for people with bad credit but if your problem is that you do not have a credit history at all, starting a relationship with a bank can be a great solution. You can request a checking account and a savings account and then apply for a car loan with them.

Bad Credit Car Loans are provided mainly by financial institutions and high risk lenders specialized in this kind of loans.

The interest rate charged for providing this type of loans is usually higher than regular loans but if you compare loan quotes you may find some interesting offers. Just make sure you credit report is not pulled too many times as this may lower your credit score. If you get declined, your credit report will also show this fact, so you might want to pull a copy of your credit report yourself and ask the lenders to pre-qualify you in order to avoid harmful records in your credit history.

Home Equity Loans as an Alternative Source of Finance

Though it may sound strange, you can get finance for purchasing a car with a home equity loan. If you cannot get a bad credit car loan and use the car as collateral you may be able to apply for a home equity loan using the equity you have build on your home as collateral. That way, you will be able to obtain a considerable amount of money at a good interest rate that you can use for the purchase of your new car.

They main advantage of this procedure is the fact that you can have really bad credit and still get approved since your house is guaranteeing the loan. You will also get a very competitive interest rate, much lower than the interest rate you would get with a bad credit car loan. And as a plus, the interest on home equity loans is deductible so you will save plenty on taxes.

As you can see, there is no need to despair if you have bad credit. There are always ways to obtain finance even if the usual methods fail. You just need to do your research and consider different options. The car of your dreams is just a few steps away.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about bad credit car loans.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/automotive/cars/buy-your-car-with-an-unsecured-loan-and-keep-it-safe-and-sound.html http://www.articletrader.com/automotive/cars/buy-your-car-with-an-unsecured-loan-and-keep-it-safe-and-sound.html Fri, 28 Dec 2007 00:00:00 -0600
The typical option is Secured Car Loans

Usually people apply for secured loans when buying a car since the car is a suitable asset for guaranteeing a loan. Thus, they can obtain finance at a lower interest rate by using as collateral the very thing they will buy with the money they get from the loan. It seems to be a great deal and it usually is. However, there might be some situations where the risk of repossession weights more than the benefit of paying less money in interests.


Are you prepared to Face the risk of Losing your Car?

Since with a secured loan, the car is guaranteeing the loan, the lender might claim the car if the borrower fails to make the monthly payments. You might think that this will not happen to you, but all of those who lost their car due to repossession thought the same. Losing your car can be extremely stressful and annoying but what if you use your car or other vehicle as a tool for your work?

You do not need to own a taxi in order to understand what this can mean. If you just use your car to visit clients across town or to deliver products you can easily understand how important your car is to you and how your income will be greatly reduced if you cannot use it. A reduction on your income can cause you to default on other loans or credit cards and lead you to bankruptcy. This is the main reason why you need to consider your options carefully when deciding between an unsecured or secured car loan.


Interest Rates are Not Such an Important Issue

The interest rate you will have to pay can be a little higher, but lately interest rates have dropped so you will be able to afford your loan payments without sacrifices and you can always refinance if you can obtain a better interest rate in the future. When it comes to interest rate your options are simple: you can opt for a fixed and safe interest rate or you can pick a variable interest rate which is usually lower but can rise if market conditions worsen.


You can Get an Unsecured Loan even with Bad Credit

There are bad credit unsecured loans available. Even if your credit report is full of stains, you can get finance without collateral. You might have to face higher interest rates but this kind of loans will contribute to rebuild your credit and you will be able to get a better deal the next time. You can always resort to a co-signer if you cannot get approved by your own. Lenders will reconsider their declines if someone else is willing to commit to pay in case you fail to meet the monthly payments.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/tips-for-saving-thousands-on-your-home-loan.html http://www.articletrader.com/finance/mortgage/tips-for-saving-thousands-on-your-home-loan.html Fri, 28 Dec 2007 00:00:00 -0600
Interest Rate

The interest rate will determine how much money over the original amount you will have to pay over the life of the loan. Along with fees and insurance costs, the interests are the price you pay for borrowing the money. As regards the lender, the interests represent their profit.

As with any loan term, the interest rate is negotiable. You need to request loan quotes from several lenders and compare them. Do not hesitate to contact a lender, tell them that you have received a better offer and ask if they can improve theirs. The idea of loosing a deal to another lender might convince them to offer you a lower interest rate.


Down Payments

Probably the best way to save money on a mortgage loan, is to request only the amount you strictly need. If you can save enough money for an important down payment, not only you will have to pay less money on interests (interests are calculated as a percentage over the principal), but you will also prove that you are capable of making considerable savings and thus the lender will offer you lower interest rates and a much better deal.


Installments

Instead of making regular monthly payments, you can save a lot of money by paying every two weeks. Even if you only pay a bit more, every time you pay, the principal is reduced and so is the amount of money you will have to pay on interests. Moreover, the sooner you pay of your debt, the lesser you pay on interests.

Obviously, to make payments every two weeks you need to have an important and steady income. However, if you dont, you can always make additional payments every time you have an unexpected income. Just make sure the payment goes to the principal and not to the interests only, otherwise, it would be completely pointless. Also, check before making additional payments that your loan terms do not include prepayment penalty fees.


What If I already have a Mortgage Loan?

If you are currently paying your mortgage installments and your outstanding mortgage loan terms are not as good as current lender offers, you can always refinance your home loan. You will then take a loan with better terms and use the money to cancel the previous loan.

You need to be sure that the interest rate charged for the refinance home loan is lower than your previous mortgage, but you also need to check that the overall costs of the transaction are lower than the amount of money you will be saving over the life of the loan.

There are many ways of saving money on your home loan, just take your time to analyze what your options are and do not rush in to the first offer you receive. Compare rates, fees and other terms and once you have all the information you need you will be able to make a conscious and well informed decision.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about secured home loans.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/combine-mortgage-prepaying-and-equity-lines-of-credit-and-save-thousands.html http://www.articletrader.com/finance/mortgage/combine-mortgage-prepaying-and-equity-lines-of-credit-and-save-thousands.html Thu, 27 Dec 2007 00:00:00 -0600
Mortgage Prepaying

Mortgage prepaying consists on cancelling part or the total amount of the mortgage loan remaining debt. If the type of mortgage loan lets you pay part of the principal and not only interests, then you will be saving money by prepaying your mortgage.

The reason why prepaying part of the principal can save you thousands of dollars is that interests are calculated as a percentage over the principal. If the loan capital is reduced, the interests charged will also be reduced.
Since the interests are the lender earnings, many lenders penalize these practices either by not letting you prepay the mortgage or by charging prepaying fees in order to discourage these practices.

Home Equity Lines of Credit

The difference between the propertys value and the remaining of the home loan debt constitutes equity. And the equity you have build on your home since the mortgage loan was agreed, can be used to obtain further finance in the form of a home equity loan or line of credit.

A home equity line of credit is guaranteed with the same asset as the mortgage loan. This line of credit usually carries lower variable interest rates which allows you take advantage of good market conditions and get money at probably the lowest rates on the private financial market.


Combining Both

Prepaying itself lets you save thousands of dollars in interests. But in order to do so you need to save a significant amount of money and make a lump mortgage payment every 4 or 6 months in order to reduce the principal. You will then get fewer interests and thus, lower monthly payments that will let you save even more money each month.

However, you cannot always save enough money to make such payments and if you want to have any reliability in your finances, you will probably want to have an extra amount available for any unexpected situation.

At this point is when home equity lines of credit come in handy. Since they carry low interest rates, these lines of credit are the perfect solution for solving the problem of unexpected situations. Even if you have not save enough money, you can turn to them in order to get extra money and make a mortgage payment to keep canceling the principal.

You will then destine the extra money to repay the amount you borrowed from your home equity line of credit. Moreover, if anything unexpected comes to happen you will have more cash available on your line of credit and will not have to apply for a loan and wait to be approved.

In order to see if this is the solution for you, you need to go through your mortgage loan terms and check if there are any penalizations for prepaying your home loan. Then compare the amount you would save on interests with the prepaying fees and the home equity line of credit costs. If the overall transaction saves you at least a couple of thousands and reduces your mortgage length, then seize the opportunity and start prepaying your home loan.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about home equity loans and lines of credit.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/getting-a-good-deal-on-personal-loans-and-avoiding-scams.html http://www.articletrader.com/finance/loans/getting-a-good-deal-on-personal-loans-and-avoiding-scams.html Mon, 17 Dec 2007 00:00:00 -0600
Interest Rate

With the exception of certain loans and grants, all financial operations charge interests on the principal. However there is no reason for consent to abusive interest rates just because you are in need of finance. Interest rate is one of the loan terms you will have to watch closely and be especially aware of its details.

The interest rate is determined mainly by your credit score so if you want to get a low interest rate you have to make sure your credit is in good health. Request a copy of your credit report and analyze it thoroughly in search for inaccuracies.
If you happen to find any mistake, contact the credit agency that issued the report and request them to correct the problem immediately. You should then ask for a credit report to other agencies to make sure they do not have the same error too.

If your credit score is bad, your only options for getting a reasonable interest rate are to provide either collateral or a co-signer with very good or excellent credit score.
Secured personal loans carry lower interest rate due to the fact that the loan is guaranteed by an asset and if you apply with a co-signer, the co-signer credit score and history will be taken into consideration when determining the interest rate you will have to pay.

If you cannot provide neither collateral nor a co-signer you will have to get used to the idea of paying a high interest rate. Nevertheless, in order to get the best deal possible, you should shop around for a lender.
Request loan quotes to many lenders and then compare what they have to offer. This way, you will be able to get the lower interest rate available for you. There are many online lenders you can consult without even moving from your home.


Fees, Costs, Penalty Fees

Most lenders charge different fees or costs in order to grant a loan. The names vary: Administrative fees, Closure fees, Granting Costs, Issuing fees, etc. There are also penalty fees charged by lenders for several reasons such as pre-cancellation fees, late payments fees, miss payment fees, punitive interests, etc.
Some of these fees are reasonable but others are not.
You need to read the fine print of your loan quotes and contracts carefully before signing anything.

Also doubt of those lenders who claim not to charge any fees at all, they are probably charging a higher interest rate in order to do so. The opposite is also true; a significantly lower interest rate is usually associated with high issuing fees and other hidden fees you need to keep away from.

The key to getting a good deal is not to rush in. First of all, consider what your needs are and request loan quotes from different lenders, compare the loan quotes with your needs and between them.
If a loan quote seems too good to be true, it probably is. Request that lender to state on paper that there are no other fees or costs than the ones included in the loan quote. If he refuses then you know that his offer wasn’t such a great deal.


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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about personal loans.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/how-can-i-manage-to-get-a-student-loan-waiver.html http://www.articletrader.com/finance/loans/how-can-i-manage-to-get-a-student-loan-waiver.html Mon, 17 Dec 2007 00:00:00 -0600
Even if you can afford the monthly payments, you will still be attached to your student loan debt for years, being unable to undertake projects like starting your own business or buying a house due to the fact that no large amount loan will be available until you finish paying off your student loans.


Getting a Waiver

Would not it be great if you could obtain a waiver on your student loan debt? You could find yourself not having to pay those monthly installments anymore and you would be free to use the extra money for any purpose you may have in mind. If you are wondering if this is possible, read on because the answer is yes.

What you need to know is that with the exception of certain situations, student loan debt cannot be totally eliminated without having to pay. Bankruptcy does not discharge student debt unless it causes severe hardship on the debtor and prevents him from satisfying basic needs, such as buying food, paying for medical bills, renting, etc.

However, you can get rid of part of your student loan debt if you meet certain requirements. What you need to understand is that we are talking about a reduction on the loans principals that will also imply a reduction on the amount of money you pay on interests. The importance of this fact is that a reduction on the interest rate or interests forgiveness can be easily accomplished by student loan consolidation but it will not save you so much money as a waiver on the capital of the loan would.


Government Debt Forgiveness

The government agencies that grant federal loans are instructed to forgive part of the student debt if the students or graduated students apply for certain job positions that the government has special interest in filling or that provide special social benefits. We will spell out a few so you can get an idea of how this system works but you should consult with the government agency that provided your loan as there may be more.

For those students who study medicine, or are already graduated, there are special waivers if they provide their services in poverty-stricken areas or areas affected by disasters (such as hurricanes or floods or famine). This is a great opportunity since medicine is known to be a very expensive career and it is likely for a student to have become greatly indebted.

It is also possible to get a waiver on your student debt by teaching at understaffed schools or schools situated in underprivileged zones. For those who like to teach this can be a rewarding experience in more than one way.

Another way of obtaining forgiveness on your student loan debt is to join the military forces or a department of social services. In both cases, there are programs available that will reduce your debt progressively as you continue being employed by the government.


Summing up

If your vocation is connected in any way with one of these jobs you might want to consider these great opportunities as you will be able to pay off your debt sooner by doing what you love to do. If you would do it just to get a waiver, you need to make sure you would not get your debt cancelled sooner by getting a better paid job in the private sector.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about student loan debts.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/tips-and-tricks-on-student-consolidation-loans.html http://www.articletrader.com/finance/loans/tips-and-tricks-on-student-consolidation-loans.html Mon, 17 Dec 2007 00:00:00 -0600

Keep your Government Loans and your Private Loans Apart

Federal student loans usually come with many benefits you surely want to keep. This includes a significantly lower interest rate that you will not be able to beat with any private consolidation loan. So if you need to consolidate your federal student loans, you will need to resort to government consolidation programs. Use private consolidation loans only with private student loans.


Focus on getting rid of variable rate loans

Though sometimes lower, variable rates tend to be a problem since you cannot predict market variations and thus your budgeting may be useless. If possible, consolidate all your variable rate loans into a single fixed interest student consolidation loan and leave fixed interest rate loans aside unless you can get a significantly lower interest rate with the consolidation loan.


Watch for prepaying penalties

Some lenders penalize those who pay off their debt sooner by adding extraordinary fees to the overall debt claiming additional administrative costs. If this is the case, you should leave low balance loans aside. If the fees are not covered by the amount of money you will be saving by consolidating the loan you will want to continue paying the loan on its original terms.


Keep your credit report clean

Try not to incur in delinquencies as this will be recorded into your credit history and prevent you from getting a good interest rate when applying for a consolidation loan. Before applying, always request your credit report and make sure everything is in order. If you happen to find any inconsistencies, contact the credit agency immediately and demand that they correct the inaccuracies. Many have been denied loans just because a credit agency employee had made a mistake.


Avoid Trading Loan Length in exchange of Lower monthly payments

Unless you really cannot afford the loan installments, refrain from extending the length of the loan. It is best to get lower monthly payments by agreeing to a lower interest rate than to get them by adding to the number of outstanding monthly payments.
Extending the loan length may solve your current cash flow problems by reducing your installments, but will increase the overall cost of the student consolidation loan turning it into a bad deal.
It is best to cut on your expenses for a little while till your income increases than to consent on many years more of annoying debt.

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Caroline Stone, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders about student loan debts.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/mortgage/zero-down-mortgage-loans-for-first-time-home-buyers.html http://www.articletrader.com/finance/mortgage/zero-down-mortgage-loans-for-first-time-home-buyers.html Fri, 07 Dec 2007 00:00:00 -0600 The Down Payment Issue

A Down payment in the range of 10% to 20% is usually required for obtaining a home loan to buy a house. There are also closing costs that you will need to pay in order to secure the loan. If you add up these two factors, very few can afford putting down so much money.

The financial industry, however, has found a solution to this problem and offers a new financial option. Zero down mortgage loans are meant for those who cannot put away enough money for a down payment. With these loans you can finance 100% of the property value. Moreover, for those who cannot even raise the money for closing costs, there are lenders offering 103% or 105% finance home loans. The extra percentage is used for covering the closing costs which will then be included in the overall debt that you will have to repay in monthly installments.


Drawbacks of Lack of Down Payment

Zero down mortgage loans sound tempting but though not having to put money down in order to purchase a house can seem to be a fabulous waiver, it has many drawbacks and unless strictly necessary, it should be avoided by all means possible.

A down payment has not only direct positive financial consequences but it also can be a positive factor when the lender has to decide whether to approve your loan or not and on what terms. When the lender has to consider your application, a down payment tells him that if you were able to save enough money to make a considerable down payment, you will probably be able to meet your monthly payments without any difficulty.

A down payment will also imply that you have the ability to obtain finance elsewhere and so, the lender will try to offer you a more tempting loan proposal in order to keep you as a client. Those who can offer a down payment always get a considerably lower interest rate than those who cannot.

As you can see, a down payment reduces dramatically the risk implied for the lender in the financial transaction, and thus, you will be able to get a better deal on your loan. A down payment will not only reduce the interest rate you pay; it will also lessen all the other loan requirements and will turn the loan terms more flexible. You will be able to get stretchy monthly payments and larger loan lengths too.


Home Equity Loans

If you wanted to use that money for making home improvements or for other expenses, you do not need to worry. Once the deal is closed, the amount you had to put down will become home equity and you will be able to request a home equity loan for the difference between your home value and the amount owed on the mortgage. These loans are secured and carry low interests; they are the perfect solution if you ever need the money you used for the down payment.

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Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/the-flexibility-you-need-benefits-of-home-equity-lines-of-credit.html http://www.articletrader.com/finance/the-flexibility-you-need-benefits-of-home-equity-lines-of-credit.html Fri, 07 Dec 2007 00:00:00 -0600
Home Equity

When you have a mortgage on your home but the value of the property exceeds the amount owed, the difference between the outstanding debt and the property value is referred as Home Equity. This remaining property value can be used to guarantee another loan: A Home Equity Loan or Line of Credit.

Home Equity Loans are secured loans with a fixed or variable interest rate, a fixed loan amount and a fixed, though negotiable, repayment program. A home equity loan is just like any other loan, only it is secured with the equity you have built on your home and thus carries fewer interests.

A Home Equity Line of Credit on the other hand, comes only with a variable interest rate, there is no fixed loan amount, though there is a credit maximum and the repayment is extremely flexible. The home equity line of credit is also secured on the home equity.


Interest Rate

Since both are secured, the interest rate charged is considerably low. Only home equity loans with a fixed rate can have a slightly higher interest. Home equity loans with a variable rate usually carry a somewhat lower interest rate. Home equity lines of credit, on the other hand, carry only a variable interest rate that is usually similar to the home equity loan fixed interest rate.


Loan amount

Home equity loans come with a fixed loan amount that can equal or be a bit higher than the home equity value. Home equity lines of credit are somewhat different: There is no loan amount, a credit maximum amount is set and you can borrow as much money as you need up to that amount. For example: If a $50.000 limit is set you could borrow $10.000 and a month later borrow $20.000 more. And so on till you reach the credit maximum.


Repayment

Home equity loans come with a fixed repayment schedule which has to be followed strictly with some exceptions. Though, there are in some cases grace periods and waivers you could apply for, if you request a home equity loan you will probably have rigid installments or at least a fixed amount plus a variable amount depending on interest rate variations.

Home equity lines of credit let you repay the amount you owe they way you want to do it. You have an open line of credit where you can borrow and repay as much as you want as long as you do not exceed the credit limit. Moreover, as opposed to home equity loans, lines of credit do not require to be renewed as you can always borrow more as long as there is credit left. If your home equity grows either by an increase on your property value or because of a reduction on your mortgage debt, you can ask for your credit maximum to be recalculated.

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Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders.

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/loans/unsecured-loans-the-best-option-for-tenants.html http://www.articletrader.com/finance/loans/unsecured-loans-the-best-option-for-tenants.html Fri, 07 Dec 2007 00:00:00 -0600
Unsecured Loans Defined

Unsecured loans are not guaranteed with any asset, thus, the risk of repossession does not exist. This does not mean that the lender cannot take legal action in order to recover his money. However, such a legal process would be significantly longer and more expensive than with secured loans.

Since there is no asset securing the loan, the risk involved for the lender is higher and so, the interest rate charged for the loan will also be significantly higher. Though the gap that exists between secured loan interest rates and unsecured loan interest rates has decreased, it is still an important factor and you should shop around for the lowest interest rate available whenever possible.

As regards to loan amounts, generally you cannot request a high loan amount with unsecured loans. However, though this remains true, lately lenders have lessened their policies on this matter. Besides, the loan amount will depend on the overall value of your assets (albeit they are not used as collateral) and on your credit score and history.

The loan length also presents certain restrictions on unsecured loans that are not present on secured loans. As with the interest rate and loan amount, the loan length will be determined by your credit score and history and within certain boundaries, it is negotiable.


Where to find the lenders

Since unsecured loans do not have the best terms on the financial industry, it is best if you compare many different loan offers before deciding which lender will you work with. In order to do so, you need to request loan quotes and compare costs, interest rates, loan amounts and loan lengths and see which proposal best suits your needs.

There are many lenders that do online loans and even those who do not process loans online have web sites where you can see what they offer and find contact information. The smartest thing to do is to search online for lenders since this way, you will be able to find many loan offers with the best terms. There are even some online companies that offer access to a wide range of lenders listed all in the same site. This is probably the easiest and more comfortable way to go.


Tips for Approval

In order to get approved you need to focus on improving your credit score and history as this is what will determine the lenders decision. Make sure your credit report does not show wrong information that might lower your possibilities. Contact credit agencies immediately if you find inconsistencies and request them to fix the mistake.

Apply only for the money you need, it is easier to get approved for a lower amount than for a higher amount. You should request only the amount you need for urgent expenses. Future expenses can wait; besides, your monthly payments will increase your credit score and let you get another loan on better terms in the near future.

If your credit score is too slow, get yourself a co-signer that trusts you in order to get approved and get better terms. If the co-signer has a good credit score, you might as well get better terms with lower monthly payments that will be a lot easier to afford.

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Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders.

Source: http://www.articletrader.com ]]>