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Bad Credit Used Car Loan – Key To Multiple Gains

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June 29, 2007

Bad credit used car loan is a ray of hope for thousands of people who get bogged down with bad credit. They can now get a car and save some money too.

The people having bad credit should give up the desire to own a brand new car and opt for a bad credit used car loan. These days thousands of good-condition used cars are available in the market. Having been through a financial crunch, you need to have a balanced and realistic view of your financial situation. With poor credit rating, you should have dual objectives for financing a car. Your need of a car should be fulfilled and you should be able to payoff your loan installments on time as well. Paying off the installments on time will certainly improve your credit and make you eligible for low interest car loans along with...

Financing a new car is not advisable for the following reasons: -

# It would be extremely difficult for you to qualify for finance on a new car with bad credit. Even if you do manage to qualify, the rate of interest would be exorbitant and quite beyond your paying capacity.

# The cost of a new car will be almost double the cost of a used car. Obviously, your loan amount will be larger and so shall be the monthly installments. With bigger monthly installments, there would be greater likelihood of failure in timely payments. Thus, you would always run the risk of spoiling your credit further.

On the contrary, if you choose bad credit used car loan, the loan amount will be much lower. Monthly installments shall also be within your paying capacity. Therefore, there would be little possibility of any sort of failure in timely repayment of loan.

A Few Suggestions:

To get best deals while looking for bad credit used car loan, you must keep the following guidelines in your mind: -

# First of all you should have a good look at your credit score sheet to know your true standing. If your score is below 600, then you must keep yourself prepared for a relatively higher rate of interest.

# Before applying for a bad credit used car loan, you should choose the model of the car that you intend to finance. This would give you an idea of the amount of loan you need to obtain. It is advisable to finance used cars, which are 2-4 years old. Such cars would be in reasonably good condition and shall have most of the latest features as well.

# Make up your mind to place a high-value collateral. Going for secured bad credit used car loan enables you to get approved for low interest car loans.

# Finally, it is always better to obtain easy online car loan. Applying for bad credit used car loan on Internet is extremely easy. You just need to fill out a simple application form and furnish details regarding your employment, income, intended loan amount etc. Numerous online finance companies specialize in this field. If you are a student, you can even find online companies that offer student car loan.

Bad credit used car loan is a boon for people with bad credit. However, bad credit car loans are not always low interest car loans. This is because bad credit car loans are high-risk loans and entail a higher risk for the lender, hence the higher rate of interest. You can get an easy online car loan by using an online auto loan calculator and taking online car loan quotes from different companies.

Easy Online Car Loan – Prompt And Simple Online Loan
Taking an easy online car loan is the best and the most convenient way to secure a car loan. These instant car loans are easily available on the Internet. You can secure hundreds of quotes and compare them to choose the best offer that suits you. Your only job is to find the car loan that is the cheapest by way of interest and yet easy to repay over a longer duration. Most dealerships overcharge by nearly 3% according to Consumer Federation of America. This means if you go to dealers and agents for your financial needs you pay about $1000 more than what the others pay. The best sites are the ones that do not charge for application fees or any down payments. Moreover, if you are a student; your student car loan should get approval within minutes.

What You Should Look For

If you go to a dealer you have to stand in a queue and wait for a long while before your needs are attended. However, on the Internet, you get easy online car loan and all information is easily available on your fingertips. Online car loan are simple and fast. The facility also offers a quick comparison among several lenders on the web. There are some very simple solutions available on the net for car loans.

You can use a loan directory service, which collects information from the buyers and distributes it to many lenders. For this service on the Internet, you have to give your name, address, your social security number and income proof. The loan directory service matches your details with the lenders on the net and sends you a list of lenders who would be willing to give you an online car loan. You can check out these lenders and pick the one providing maximum benefit. Then you go to the lenders’ website, fill in the details required, and wait for the money to arrive into your bank account.

While choosing a lender to secure easy online car loan, try to get a lender who does not require income proof. This process can add another few days to your loan application. Try to get a lender who seeks verification from your employer, as this process will be much faster. In such a case, you just need to provide the name, address and phone number of your employer.

The best thing about working online is that in the event of a breakdown in your car or in the unfortunate event of an accident, you can get an easy online car repair loan. Charges for a car repair loan are the same as a car loan. Therefore, do not lose sleep over the lack of funds and go for an easy online car loan.

Taking an easy online car loan is the most convenient way to finance your new car purchase. Online car loan application is simple to fill and you can get online car loans for purchase of used cars and even get a car repair loan for funding car repairs in the even of car breakdown. Student car loans are specially designed for college and university students.

No Credit Check Payday Loan - No Credit Verification Is Required
Asheesh is a web content writer and partner of leading web content provider, Creative Lipi. Asheesh is also the creative web content consultant for Ascent Info Solutions, which owns numerous websites in heath and personal finance segments. Asheesh specializes in keyword optimized web content on almost all subjects under the Sun, but most frequently he writes on health and personal finance related subjects.

No credit check payday loan refers to a smaller loan for very short period that the lenders sanction you without taking into account your credit report. It is a very good tool in your hands when you have bad credit and need money to meet some emergency expense. It is a cash advance that is also referred as no telecheck payday loan. No matter for what purpose do you need cash quickly nothing can be the better option than a cheap payday loan.

Helping You When Something Unexpected Happens

You work hard to provide better amenities to your family. However, most of the time whatever amount you get on your payday is used up in paying off the monthly bills. This typical cycle keeps on repeating again and again and you are never left with additional money to do something pleasant for you and family. In these circumstances managing quick cash to pay to mechanic when your car breaks down is really a daunting task. No credit check payday loan may be your only companion in such kind of state of affairs.

Usually, no credit check payday loan companies allow you to borrow amount up to one thousand dollars. However, this amount may vary with the company and your income level. You have to pay back this amount to the lending organization on your next pay date.

Entire Process Is Very Smooth

The overall procedure of availing no credit check payday loan is much different from other kinds of personal loans. As there is no credit verification, the entire process becomes much faster for a payday cash loan. There is no hassle of completing countless number of paperwork. Moreover, unlike personal loans there is no waiting period and you get approval within hours of submitting application.

To get a no credit check payday loan you can get in touch with local financial institutions. Alternatively, you can also look for companies offering cash advance on Internet. Thousands of companies on Internet offer this type of services. You can compare their charges and other terms and conditions and select the best one according to you specific requirements.

The cost of no credit check payday loan is somewhat higher than other traditional loans. However, still it is a popular option among the people because it fulfills you requirement of quick cash when you need it most. Moreover, the term of the loan is short and the amount is also very small so people do not mind the high cost associated with it. However, if you extend the period by choosing roll over option then it becomes even more costly.

No credit check payday loan or a no telecheck payday loan is a cash advance wherein the lenders do not check your credit score for offering the loan. The entire process of payday loan application processing is very smooth and you get an approval within minutes and the loan amount within 24 hours or less. Best Payday Loan is a free online resource for cash advance loans offering tips to get a cheap payday loan.

Online Car Loan – Instant Cash For Your Dream Car
Online car loan is available at just a click of the mouse, to make your life easy. There are so many reasons for you to purchase a car. You have to commute to office; you have to take your family out on weekends, or you have to take your fiancée out in the evening and many more. If you get a hefty pay packet at the end of every month, you will have no problem to acquire a new car loan. You will have the credit to show in your return of income. After all, the prime concern of all moneylenders is the repayment capacity of the borrower.

Your repayment capacity decides how many options of car loans you have. If you have good credit, you can get an unsecured loan; on the other hand, if your credit is weak you will need to get a secured loan. A secured loan means that you will have to keep your car as collateral with the lender. If you default in payment, the lender will seize your collateral.

Points To Remember

# Rates of interest on online car loans are usually very low. There are many lenders on the Internet, who help you to compare and choose the best offer.

# Bad credit is not always a hindrance. You can secure car loan UK even if you hold a Country Court Judgment. However, you will get only a secured loan in this case.

# One should usually go for a long-term loan. In a long-term, the monthly installments become much lower which reduces the financial burden on the buyer. With a longer term, you can afford a better car at the same cost. These car loans are meant for low and medium income groups. With their current expenses, they cannot afford a car on their own. Easy online car loans gets quick approval and consumes less time.

Other Options

Besides purchasing a car, there is another option to the purchaser of the car, if he is really short of cash, and he requires a car for a short duration of time. You can take a car on lease. A car lease is like taking a car on rent. You do not become the owner of the car even after paying for the car during the entire term of the lease. You have to decide the down payment on the car lease, if any. A person who does not have to travel much usually takes a car lease. This is to avoid the mileage limit imposed by the leasing company.

Only you can be the best judge of what you want. It is your money at stake. If you plan to keep a car for a long period then go for an online car loan. It is better to own a car than to pay for it and yet remain a renter.

Online car loan is a very helpful facility, which offers a car loan on the Internet. It has a simple process and yields quick results. You can get an instant car loan online because when you fill an online car loan application, the loan approval process is almost instant. Low Interest Car Loan provides more information about car loans in USA, Canada and even car loans UK for residents of the United Kingdom

Rising interest rates see car financing rates drop

Rising interest rates and higher disposable incomes are prompting more and more car buyers to use their own money and avoid bank financing.
In 2006-07, more than one million new passenger cars were sold in India; 80% of these cars were financed by banks and financial institutions. Now, about 70% of car buyers are taking bank finance. This, in effect, means more people are going for an outright purchase by using their savings.
Interest rates on auto loans have increased by over three percentage points from 9.5-10% to 13-13.5% in the past six months, following the Reserve Bank of India’s tight money policy and some consumers not wanting to deal with potentially rising monthly loan payments.
“The average share of cars getting financed has come down to approximately 70% from 80-82% a year back. It is natural for customers to move to cash purchase when interest rates go up,” said N.R. Narayanan, general manager, vehicle finance, ICICI Bank Ltd. The bank has about 35% market share in car financing.
Sumit Bali, CEO, Kotak Mahindra Prime Ltd, also says that the percentage of car buyers availing of bank finance has been going down. “The penetration has been coming down gradually in last two years since interest rates started rising. This year, it has come down to 70%,” Bali said. Kotak Mahindra Prime is one of the leading car financiers in India.
Car manufacturers are also witnessing the same trend.
“For Hyundai, the number of cars sold on finance has come down from around 86% a year back to 74% now. The impact is maximum in small-car segment, where the consumers are more sensitive to borrowing money,” said Arvind Saxena, vice-president, sales and marketing, Hyundai Motor India Ltd. The company, which makes Santro cars and is the second-largest player in compact-car segment, sold 43,972 such vehicles in April-May period of 2007-08, a growth of mere 2% over the corresponding period.
This year, on an average, banks, non-banking financial institutions and other vehicle-financing institutions are collectively lending close to Rs3,500 crore for purchase of cars in a month.
But bankers say this market is shrinking. Between December 2006 and now, auto finance rates have gone up to 13.5%. An average loan amount for a car is around Rs4 lakh. With an increase in interest of at least three percentage points, the monthly installment for a car for a tenure of three years would have gone up by approx Rs600.
“With household budgets going up due to inflation and higher installments for other loans taken by a consumer, there is an impact on the buying behaviour of consumers,” Narayanan said.
Indian passenger car companies sold 1.076 million vehicles, achieving 22% annual growth in 2006-07. However, in the first two months of fiscal 2007-08, the growth rate of the industry slowed to 10.8% as it sold 181,144 vehicles.
The industry is considering many options to encourage buyers to take loans. For instance, one large private bank has started offering step-up loans, where the monthly installments increase every year in line with the rise in the buyers’ paying capacity.
“We expect that the situation will improve from July-August when the festive season will start, which is good for business of car,” said Narayanan.

Avoid Owing More Than a Car's Worth
June 3, 2007

An increasing number of car owners are finding themselves in an uncomfortable position -- "upside down" -- when they decide they're ready to unload a car.

The phrase refers to owing more on a car loan than the car is worth, a condition also known as having negative equity. Analysts say about 29% of car buyers whose transactions included a trade-in last year were in this position, compared with 20% five years earlier.

One reason for the increase: A growing number of people are financing cars for terms of five years or longer. And some of them are then looking to shift to the newest, hottest auto design after just two or three years, when the current car may be worth less than half its original sticker price.

How to avoid this predicament? First, buyers should borrow as little as possible to buy a vehicle. Saving for a down payment will also shrink monthly payments and cut interest expense.

It's also best to pay off a car loan as quickly as you comfortably can. Bigger monthly payments over a three-year loan may hurt as they force a tighter budget, but will cost less in the long term. Increasing the length of a car loan by one year for a $35,000 car can add more than $1,000 to the total cost.

Getting a new-car purchase to make financial sense almost requires keeping the vehicle for years after making the final payment. Many cars cost almost nothing to operate beyond the price of gasoline once they are paid off.

Buying a used car helps avoid the immediate depreciation that erodes a new vehicle's value as soon as it is driven away from the dealership. Look for cars that have been leased for two or three years and have complete maintenance records. Today's cars last longer than ever, so used models typically have many years of service to offer.

Those who simply cannot bear to keep a car for more than three years should consider leasing. Cars that are expected to retain a lot of their value over the lease term typically require smaller payments.