Be Prepared for the Problems in Used Car Financing With Solutions Before You Start

Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.

Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.

To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.

This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.

Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.

“For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”

Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .

The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:

Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.

SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.

It is Not Necessary That Your Job is Your Credit For a Car Loan – Finance Your Car Without a Job

The logic behind this particular requirement is that lenders feel if the applicant does not have a job, it is going to be difficult for the applicant to repay the money borrowed. It is a misconception, but that is the fact. That is how it goes, and the applicant does not have a choice other than to fulfill the requirements stated by the lenders. Well, let is think differently. It is not impossible. There is a way you can still avail credit even if you do not have a job. The article tries to explain how to go about getting your car loan with no job and no credit or poor credit ratings.

The importance of collateral or a guarantee

All secured loans require some sort of collateral or a guarantee. In case of mortgages it is the house that provides the collateral. While going in for car loans or automobile finance, it is the vehicle – the car – that acts as a guarantee. Lenders generally provide around 75% to 80% loan against the guarantee provided. That means if the house is evaluated at $100000, it is possible to get a loan of $75000 to $80000 max. The same is true while availing a car loan. The applicant needs to make a down payment that is approximately 20% of the car is price. The remaining 75% to 80% of the car is cost is provided by the loan provider. The fact is even with a collateral, lenders prefer the applicant to have a job. It is not important whether the borrower can come up with an alternative source of income – that does not count. To get the loan you need to have a “recognized” source of income. And in most cases, the most legit source of income is the job. In short, by just providing the collateral, the lender is not going to grant you the loan unless you have a stable job. While financing your car, as far as orthodox credit lending institutes are concerned, your job is your credit for a car loan.

Get your car loan without a job even with bad credit ratings and no collateral

When regular or standard options do not work out, one has to go in for alternative options. One cannot provide what one does not have. There is an alternative available. The answer lies in acquiring the required credit from places or people who do not need any security or credit ratings. One such place is the pawn shop. Pawn shops have existed for many years, and almost everybody knows how they operate. It is one of the best place to buy used goods that do not cost much, and it is also a place where you can offer some commodity that is not very expensive, and get some money in exchange. It is not difficult to avail credit from pawn shops, and the main advantage is you get to decide how much cash you need without presenting any documents or credit rating reports. It is worth knowing how pawn shops work.

How pawn shops work

In case of typical car title loans, the credit lending company determines the price of the car based upon the car is resale value, and provides a loan against that value. The lending company retains the car is title or ownership documents till the loan is redeemed. Generally a car title loan is of short duration, and associated with a high rate of interest. The rule is if you do not repay the loan within the stipulated time, the company can possess the car and sell it to regain the capital lent along with the loan is interest. That is how an auto title loan works.

If you possess some jewelry, or some other valuable, it is possible to “pawn” it in a pawn shop. A person evaluates your possession and comes up with an appraisal value, and lends money based upon the appraisal. You are supposed to repay the money after a certain time. The pawn shop charges interest in reference to the money given. The interest charged is usually around 10% and varies from state to state. This particular method of lending money in exchange of some “possession” is basically a loan. It is a special type of loan because the pawn shop does not require any documentation, or your credit history, while lending the money. The money can be used to buy your car. And just as in the case of a car title loan, you forfeit your pawned possession if you can not repay the money borrowed. It is an alternative way of financing a car with no job in hand. Certain pawn shops specialize in providing capital for car loans.

What Stands Behind Capital One Credit Cards and Savings Products?

In the times since the global financial crisis, it has increasingly become a concern as to what the backing of the financial institution that issues your credit card or holds your saving account is. There are a number of laws which regulate the financial system and try to ensure that customers can rely on banks to honour their obligations which can be a particular concern in relation to savings products. Title 12 of the United States Code in part 325 specifies a number of ‘capital adequacy requirements’ in relation to all banks. The aim of these requirements is to force banks to adequately provision of a crisis and ensure that they will remain solvent even if there is a large crisis. Banks must report periodically on their arrangements to show regulators that they are meeting the capital adequacy requirements.

Capital One at the moment is, when measured by asset pool, the 8th largest bank in the United States with balance sheet assets of approximately USD$286bn in 2012. Amongst other distinctions, the company is also one of the largest customers of the United States postal service. Its head office is in Fairfax County Virginia and the current chairman, CEO and President of the company is Richard Fairbank. It is one of the fastest growing banks in American history having been founded in 1988 by the current CEO. Like many banks in the American financial system, Capital One was the recipient of a bail out during the sub prime mortgage crisis of 2007 when it received $3.56bn from the United States Government in exchange for 3,555,199 shares in the company. By the end of 2009, the company had managed to buy the government out of the business.

As well as being involved in credit cards, Capital One has an Auto Finance Division which is a substantial part of the company. An entity known as Capital One 360 is also now in existence having formerly been known as ING Direct on the idea that a bank could perform retail services entirely on the basis of an online model. This division of the company has no branches and only maintains a physical presence in the form of call centres and online processing maintenance facilities. The online bank model seems to achieved some success given that the lower overheads from rent and staff result in lower costs to consumers and therefore a better outcome.

One of the notable characteristic of Capital One is that it appears to have retained an ability to ride out the periodic financial storms which emerge in the world of consumer credit. It has grown consistently throughout good and bad times in consumer finance and continues to grow based on the analysis of its most recent financial data. This history of growth and the ability to ride out financial storms appears to bode well for the credit and savings products of Capital One.

Top 5 iPad Finance Apps for Business

The past two years have been a whirlwind in mobile computing and people are embracing these new devices, like the iPad, at breakneck speeds. Apple’s Fourth Quarter revenues jumped 21 percent from a year ago, including the sale of over 11 million iPads. It’s clear that the huge advances in mobile devices are not only changing how we live our personal lives but also how we do business. For business, especially small business, some of the biggest advantages are coming from the app world. If you want to make your business finances a breeze, check out these apps:

1. Square: Credit card transactions have never been easier. The developers of this free app will send you an actual credit card reader that plugs into your iPad. It’s secure, easy, mobile, and even has built in analytics to track sales, collect tips and tax, and send electronic receipts via email or text. There is no need to delay the payment process anymore. Oh, and they only charge a 2.75% transaction fee: no contracts, fees, or merchant accounts necessary.

2. Expensify has the traveling business world in an uproar. The features of this app are impressive at the least: sync banking information to track purchases in real time, digitize receipts to reduce the chance of losing them (just snap a picture and the app will discern and note the necessary info), customize and email reports for approval, and be reimbursed to your checking account. You’ll be your accountant’s best friend with the organization and ease provided by this app.

3. Time Master + Billing: With a 4 star rating in the app store, this app sets the bar for time and expense tracking. The overall best feature is flexibility to be customized to fit how you work – rounding minutes, multiple running timers, billing rates, expenses, client project/tasks, and so many more options. There are even additional modules available to include invoicing, QuickBooks export, and wireless sync between mobile devices.

4. Intuit GoPayment Credit Card Terminal: Similar to Square but a little bit more involved. It’s also a free app, but you have to jump through a few more hoops (AKA a 15 minute application process) to be approved to use this service. However, if you’re looking for a proven brand name, this may be for you.

5. QuickBooks Connect: This is a great supplement to your QuickBooks Online subscription (QuickBooks 2011 users you’ll have to get a paid subscription to use this app past 30 days). Manage customer information and balances; create invoices and sales receipts; convert estimates to invoices; email estimates, invoices, and sales receipts and more with this handy app.

Mobile computing can make all the difference in the efficiency of your business. Look for the bottlenecks in your financial administration and ask yourself, is there an app for that?

Kristi Daeda is an online marketing strategist that works with companies nationwide to define and execute powerful online marketing strategies. Read more about her thoughts on online marketing at her website [http://www.powerhousestrategy.com] or as featured on Mobile Apps Designers.

What Affects Your Home Finance Company Car Insurance Rate

A home finance company car insurance rate is determined in several ways. Home finance companies that sell car insurance are generally stable companies. They are very prompt about paying claims in most cases. They are large insurers who are diversified and can cover all their obligations.

Home finance companies offer mortgage insurance and home owner insurance as a means to protect their investments. Auto insurance is not so obvious a move, but it protects their customers’ solvency, too.

If you have an accident, you may be liable for damages to someone else’s car. That is usually the easy part. What can really break the bank is liability for injury of another person or persons.

You could have to pay for medical expenses, which could be astronomical. A court could award pain and suffering to the victim. You might even have to pay loss of wages. The auto insurance will protect you from these losses.

Many factors affect car insurance rates.

Having air bags can help your rates. If you have a wreck, your insurance might have to pay for injury to passengers in your car. Your home finance company car insurance rate will go down if you have air bags in your car to protect yourself and your passengers.
Having multiple cars helps. The more cars you have insured with your insurance company, the less you will pay per car.
Paying by the year is best. Even paying for six months at a time lowers your car insurance rate. If you pay by the year, it is even better. This is because the company does not have to bill you or do make entries on your account as often. If you pay every month, it is more of a hassle for them.
You can get a discount if you are in the military. This includes active duty members of all the military services. Veterans can get the discounts as well. If you are a member of the National Guard or Reserves you also qualify.
Senior citizen discounts can help you. If you are over 55, your home finance company car insurance rate could be lower. This is true of most insurance companies. It even makes more sense for home finance companies because your house is usually paid off or nearly so.
It pays to be a good student. Whether you are in high school or college, a grade point average of 3.0 or higher can earn you a better car insurance rate.
It helps to be accident-free. If you have not had an accident in five years or more, the car insurance company will look kindly on you. You are a good risk for them. You are not nearly as likely to have an accident as someone who has had many wrecks.
Having home insurance with the same company is a big plus. A home finance company that also sells auto insurance will reward you well if you take their home and car insurance both.

You can have some control over your home finance company car insurance rate. Do what you can and watch those numbers come down.