How Rich Are You?

My daughter recently made a comment about one of her friend’s families, “they are so rich” she said. It surprised me a little because I know the family well, and while they might choose to spend their hard earned cash a little differently than we do, I am pretty sure that they are not any wealthier than us, if at all. So I was intrigued, what was it that my 12 year old daughter saw in our neighbours house that caused her to think they were so rich. “Why?” I asked her. “Well” she said “they have a TV in nearly every room, all the kids’ have one, they have one in the kitchen, one in the living room and there’s even one in the garage, and” she continued, “Joshua has a PS2 and an Xbox in his bedroom and Caitlin also has her own PS2, which she uses just to play sing star on”.

WOW, I was amazed, when did my daughter become so materialistic? Is it something she picked up from my wife and I? Or is it just they societal norm of our day and age to associate things with wealth. I certainly don’t remember teaching any of my kids that, but there it was, undeniably staring me in the face, the association of ‘things’ with wealth from my own flesh and blood. In my humble opinion the problem with today’s Western societies is that we are too rich. Most people would probably not agree, because they don’t enough TV’s but it seems to me that, we have gotten ourselves into a state where ‘enough is never enough’ and as far as I can see, our abundance of ‘things’ does not make us happy.

There are places in the world where being ‘rich’, means having water that you don’t have to walk two miles for, that you don’t have to boil before you drink and enough food to get you through the day. If we could be content with so little, then we could be content indeed.

Oh how things have changed in the last 30 years or so. I was brought up in Dublin, Ireland in the 70’s, hand me downs, holes in our shoes and third hand school books were the societal norms, everybody was at the same level of poverty and nobody ever bought anything that they could not pay for in hard cold cash. The official term ‘hire purchase’ became more common in the 70’s, the unofficial term was ‘the never never’ because it seemed that once someone bought something on hire purchase they never stopped paying for it. Of course the term today is credit. We are familiar with the words incredible and credible, but rarely do we associate them with good credit, bad credit or plastic cards, but they are one and the same word. If you have good credit then the loan company believes in you and if you have bad credit you are unbelievable and not in a good way.

Bad Credit Auto Loan: A Way to Repair Your Credit Score

Having a car has become a necessity in today’s fast growing world. But to obtain a car you need a good credit score. What do you do when you know that it is not as good as it should be and you find yourself in a tight spot financially? The first thought that comes to your mind is whether you will qualify for an auto loan. And, why would a lender approve loan application of an individual who has a spotty credit score? But the good news is that you can get a bad credit auto loan.

What is a Bad Credit Auto Loan?

The simplest definition is that you can get money for buying a car with a bad credit score. A credit score depends on your ‘creditworthiness’. So when you have a bad credit score, getting an auto loan becomes difficult because a lender thinks that you are unable to repay your debts. Today, owing to online services many lenders offer attractive interest rates on a bad credit auto loan providing the borrower a sigh of relief!

It’s no Picnic!

Getting an approval for a bad credit auto loan is no picnic. It means that when your credit score is not in your favor, it becomes difficult to get approval. But, with the following guidelines, approval becomes easy:

· When your credit score is in question, don’t assume that it must be bad. The wise way is to check it yourself.

· It is the best time to shop around for a bad credit auto loan. Many lenders see borrowers with credit issues in a positive light. So it is important to shop around in order to make the right decision.

· Go online! Various loan options are available online which not only suits your needs but also offer you best interest rates.

· Consider a co-signer. A co-signer provides the security which lenders are looking for in a loan application. Your co-signer’s financial condition should be good in order to compensate for your low score.

Different Lenders have Different Viewpoints

Something that is multifaceted can be looked at from many points of view, with each point of view showing something new.

· You don’t have to worry about your credit score since the lenders are not going to looking at it. Instead, the lenders will look at how likely you will pay off the loan in future.

· The approval rate for a bad credit auto loan is higher than other conventional loans.

· It gives you an opportunity to improve your reputation. If you make timely payments, it can provide you with a chance to build a stronger financial standing.

On the approval of a bad credit auto loan, you will now have the money to buy a new car. You will have fixed interest rate and monthly payments. So now when you make the payments on time, it will not only repair your credit score but also build a good reputation with the lender.

When your credit score is not good, Online bad credit auto financing is the perfect way to buy a car. Apply with EZ Auto Finance and the online loan expert will help you to become a proud owner of your favorite car. Also, it will enable you to obtain no down payment auto loans.

Applying for a Personal Loan With Subpar Credit – What to Know

Anyone that finds themselves with multiple balances on credit cards that have high interest may consider looking for a personal loan with bad credit. This allows them to transfer those balances and take advantage of a lower interest rate to pay off their cards. Sadly, many banks will turn them down due to their credit. Thankfully, there are ways to get a loan that will help them save money, even with that low credit score.

Whether due to financial issues, job loss, or just striving to build a good credit score as a first time user it is difficult to get a loan. The way credit reports work is always changing and there are many factors that affect a person’s credit. It’s important to stay in the know about how to build it, and what your options are. There are likely more options than they think. Here are some ways to apply for and get a personal loan with bad credit.

How to Get a Loan with Bad Credit

Having zero credit or poor credit is a major issue when looking to secure a loan, because that person is viewed as a high risk customer who may default. It’s important to accept that until the credit score is raised, one won’t be able to enjoy the standard lending guidelines offered by big banks.

For anyone that’s been turned down for a loan or who doesn’t want to pay monstrous rates, here are some options:

Consider a Home Equity Line of Credit

If there is enough equity in owned property, it’s possible to secure a tax-deductible, low-interest loan or line of credit that can be used in any way. The only downfall is that many don’t want to tap into their home equity as it puts the property in jeopardy if they can’t repay it. However, with a steady income and a bit of discipline then this can be paid off and is a less pricey option no matter what the credit score!

Try and Apply to Credit Unions

Credit unions are so much better than a regular bank. That’s because they are member-owned. Usually they are founded by people who have something in common whether it be living in the same area, or working in the same profession. They are nonprofit and have a sole purpose of helping members. They offer great customer service and low fees.

Borrow from a Friend

Consider what’s called P2P or peer-to-peer lending. There are even sites online that let a person borrow from someone directly rather than a bank. This form of lending is getting very popular and is quite simple. It’s a winning situation for both investors who want to earn interest and borrowers who enjoy paying lower rates. It’s the perfect solution when looking to apply for a personal loan with bad credit. Current rates with P2P lending are as low as 6%. That’s far lower than most credit cards.

Family Loans

If an online peer doesn’t pick up a loan request, there’s always a chance a family member might. However, it’s more than important to treat a loan from someone in the family just as a professional loan. It should be documented and recorded. A written agreement should show the interest rate, terms of repayment and collateral that’s going against the loan. It should also lay out all the actions to be taken if the borrower does not repay.

What About a Co-signer?

If one is searching for a personal loan with bad credit and they don’t have a family member or a friend that is available to offer the loan, maybe they would consider co-signing. This is when someone who trusts that the borrower can repay the debt would take a chance on them and be a back up to repay the loan should that person default.

Should You Own a Credit Card?

Are you the kind of person who should own a credit card? This may seem like an insulting question, initially, but as individuals, there are things that we are good at and things that we are not so good at. To paraphrase Mark Twain, “We are all ignorant, just about different things”. Quite often, however, we fail to recognize some qualities in certain aspects of our personalities. There are a few questions that you can ask yourself though, which will help determine your suitability as a card owner.

Is shopping a form of entertainment for you?

Do you buy things that you do not need?

Do the words “on sale”, or “reduced price” excite you?

Do you think that the credit card limit is actually yours to spend?

If the answer is yes to all but especially the last, then maybe you are a danger to yourself and possibly your family if you are walking about with a live credit card. It is hard to believe that some people literally think that if they have available funds on their credit card, that they also have the right and financial ability to purchase whatever they please, but unfortunately this is a reality with the younger generation. The truth is this… The ability to repay should be the main indicating factor in whether or not a purchase can be made. Some believe that it makes sense to buy things today that they can earn the money for tomorrow and some even have paid one card debt with another card, simply because they can.

This behaviour may not necessarily be down to a lack of will power or a negative character flaw, just a reaction to the times we live in. In this day and age of materialism and pseudo wealth, it takes a certain amount of restraint and an understanding of how the world works to say no to the trend of constantly purchasing, and if you think the temptation is too much for you then you are probably better off without a card.

While, owning and maintaining a credit card is a good way to establish a good credit report for when you need it, there are other ways to establish and build credit. Home equity loans, and personal lines of credit are a great example of one way to do this. This will obviously allow you to use the equity in your home to obtain credit. It is however important to use this credit wisely also, although accessibility to these funds is more restricted than a credit card and you also have a visible monitor of decreasing funds and rising mortgage interest payments to deter you.

How Can I Buy a Car With Bad Credit?

According to an article in consumers affairs;

In general, it is better to go with a bank or an auto financing lender rather than the car dealership down the street that is offering a “buy here, pay here” deal. If you do wind up with a high interest rate on your car, work on rebuilding your credit score so that you can eventually refinance.

If you suddenly find yourself without a car you might be asking, “How can I buy a car with bad credit?”, well, You DON’T! I know not having a ride can be a problem, like how do you get to work, or what if you want to go out? Well as far as getting to work goes, see if a work colleague lives near you and chip in on some gas for a ride. As far as getting out from time to time, there’s always Uber.

You want to give yourself a few months to save up some money and pay cash for a vehicle until you can get your credit to a point where you can get a 6% or less interest rate. Your choice of vehicle will be better and the total cost for the vehicle will be a lot less.

Another problem with buying a car with bad credit that most people forget is car insurance. Your insurance premiums unfortunately are also based on your credit score. The combined monthly cost of your car and insurance could be challenging. Again, waiting until you have a good credit score will save you on insurance as well.

Here is an example based on $35,000.00 vehicle purchase at 20% versus 6% on a 5-year loan.

$35,000.00 at 20% interest you will pay over $15,000.00 in interest at 6% you will pay approximately $5,000.00 in interest. Quite a difference.

Your total cost for the vehicle is about $15,000.00 less in interest at 6%, and your monthly payment is approximately $250.00 less per month!

OK let’s play a little game, what if you took that $250.00 per month that you’re NOT paying in interest and invested it each month over the same 5-year time period with a 6% return?

Well you end up EARNING $3000.00 instead of PAYING $15000.00. I’d say that’s a pretty good argument for doing everything you can to avoid a high interest car loan.

Instead, put ALL your resources into getting your credit fixed. This will put you in to position to buy at a good interest rate with minimum money down. This will save you a ton of money and you won’t regret it!

Buy a new car or even a used car is never a good investment, but one you can’t avoid. Buy a car with bad credit, as you can see, is yet a worse scenario. Make sure you do whatever it takes to avoid this costly mistake.

If you considering purchasing a car in the near future and have some credit challenges be sure to check with one of our Credit Experts to see how you can improve your credit for the best interest rates and no money down options.

One Size Does Not Always Fit All

Many credit cards come with special offers and temporary low APR’s (Annual Percentage Rate). It is however important to look at these special offers very closely to determine if it is a good long term card for your specific needs and spending pattern. Sometimes these offers can be a little bit misleading, which can add to the difficulty involved in making a decision when selecting a low APR credit card. Some cards will offer a very low APR for the first six months, after which time, the rates may increase significantly, this might not be as helpful to you an you initially hoped it would be and would not be a good idea for long term unless you are very much in control of your spending. which may not be too much of a problem for many people. But if that is not you, then it may be better off searching for a card with a fixed rate that is comparable to the average APR. Some offers often include a special balance transfer rate. This can be a great way to lower your interest if the new low rate is fixed and will stay the same for a long period of time. Ultimately this strategy can give you a chance to switch from a card that carries a much higher APR.

Personal Loan and Its Different Advantages

A personal loan is an unsecured loan which is offered to a consumer for catering their various personal needs such as the renovation of a house, marriage, home appliances, buy vehicle amid others. This is offered after verifying one’s ability of paying especially the income source and also according to their credit history. A nominal processing fee will be charged and the sum as per a person’s paying ability will get credited to their account. In fact the loan payment is made via fixed installments which also includes interest and for fixed time periods. The icing on the cake is these days personal loans are a smart choice as one do not require going through a lot of formalities and tedious paperwork. Most of the financial institutions and banks offer personal loans today and the rate of interest is also quite reasonable.

Discover the different benefits

• Available easily- to get a personal loan is no longer a challenging affair. It is offered by almost all financial institutions and banks at a reasonable rate of interest. Compared to other loans it is convenient and easy to get

• No middleman or agent involved- for availing a personal loan one will not require taking the help of an agent or a middleman. This will avoid unnecessary expenses and delays. A person can approach the financial institution or bank for the purpose directly

• Unsecured loan- this is indeed an unsecured loan. Here no collateral security is needed for availing the loan. In fact, all that is needed is one’s ability of paying back the money.

• Less processing time- because it is accessible devoid of any guarantee or security the processing time needed to get this is naturally less compared to other loans

• All purpose loans- in this form of loan it is not compulsory for a person in specifying the reason for which they will be using the money.

• Minimum paperwork- to get a loan will not need any asset verification or other forms of certificates and proofs which include ample paperwork as none of one’s property is mortgaged

• Offers and schemes- different financial institutions and banks keep announcing offers and special schemes on personal loans, especially for the professionals such as architects, doctors, chartered accountants and the like

• Amount and tenure- these loans generally are provided varying from Rs 15000 to Rs 20 lakhs differing from one bank to another. The repayment can be made through EMIs

The bottom line is, rather than borrowing money from a credit card it is always better to choose a personal loan as the rate of interest is comparatively lower. So reap its utmost benefits.