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June 2015

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Is car title loan a good solution for your quick cash requirements?

When in urgent need of money and faced with situation like bad credit, people often take up loans like the payday loans or the car title loans. These offer immediate relief from the cash crunch are very costly loans because of the high interest rates and tougher repayment terms on them.

car title loan

More about car title loans

There’s only one eligibility criteria for the car title loan and it says that you must be the sole owner of the car and there should not be any loan on the car. Once you take the car to the lender they evaluate the car’s present value. Generally it is done using the blue book which is meant for such evaluations. The loan requires a small application form to be filled out. These loans are quick and are generally given for a very short duration often ranging from a few weeks only. The owner of the car continues to own the car as earlier and agrees to pay a fixed amount to the lender as per date decided under the loan agreement. The interest rates on the title loans are pretty high and one should take this into consideration while making the loan decision.

People often try to avoid these loans but when there is an urgency they look out for ways which can offer them quick solution and there they go in for the car title loans which offer them the required solution.

So why do people take car title personal loans for people with bad credit even though they know that these are not meant for them? Well the most obvious reason behind this behavior is, ignorance. People are not aware of the ways to avoid the car title loan. Here are certain ways which can save you from the killer car title loans.

Maintain a savings account: One of the best ways to prepare yourself for the short- term emergencies requiring little amounts is to maintain a savings account. One needs to allocate a fixed amount of their monthly income towards these savings accounts. Consistent efforts will build a corpus which can be easily used in the times of emergency. If we consider this against the car title loans , there are high interests to be paid and if one fails to repay the loan on time they are faced with heavy penalties and stand a chance to lose their vehicle in the act.

Maintaining a savings account might look like a cake walk. However, it is not. In fact people often pull out money for their expenses from the savings account. Instead of looking at the account for the future use they look at it as a source of funds which can fulfill their desires.

One has to maintain strict discipline towards keeping the savings account for the purpose it has been designated.

There are other ways too to tackle the urgent needs. These include the personal loans, loan against insurance policies, sale of stocks and even loan against securities.

However, if one has bad credit getting any other form of unsecured personal loans might be difficult. People then have to look out for other ways like selling off the unused stuff in the house to raise some cash etc. If you have some cash with you as savings but you do not want to use it for this emergency review your decision. Car title loans will not only require you to pay for high interest rates but any delay might lead to further increase in the interest rates and you might lose your vehicle too. It will always be wise to use the savings to avoid the car title loans.

Refinancing an auto loan for all

It’s time to use your car to get one step further down on your financial condition, with an auto loan refinancing. There are so many options for refinance in your auto. So it is very easy to get an auto loan refinance. You could use your car as a path to get extra cash. Now it becomes very easy to get an auto loan refinance. Many people are using it to increase their financial ability. Its process is very suitable and easy. Review the period or terms of your existing auto loan.

It is very important to know that where you stand with your present loan. After knowing this, you can start shopping for a new loan. Try to find out that what you are paying in the interest, your current pay off amount, how many months you have left, and whether there is a prepayment penalty in place. Determine of your car qualifies because each bank has its own stander requirements. Banks will not refinance a vehicle that has less than 7,000 dollars left on the loan, more than seven years old has 100500 miles or more.

auto loan

How a refinance, will save you?

It is also very important for all of us to count about the auto loan refinance. You must have to count it before you get this loan. Count will help you to take the right decision. Now there is many online loan calculator is available. So you can use an online auto loan calculator to calculate the details about the unsecured loan. You get the details of repayment amount, interest rates, and much more.

Compare rates with others:

Before you get an auto loan refinance, please don’t forget to compare the rates with other deals. It will help you to find out the best option. You can call few banks in your area to get full details about the interest rates. You can also take help by many online sites. There is many online site is available to give you different information about the auto loan refinance. By the help of an online site, you can find out the national averages. When you are going to refinance an auto loan, that’s the rate you are like to pay, even if you have a brand new car loan now.

Simple application process for an auto refinances loan:

If refinancing seems to make suitable after running your calculations, then it’s time to go ahead into all of the details. Ask the financing companies that you are considering about fees that you will expected to pay. You have to pay a small fee of reregister, and for transfer the title of the vehicle is to be expected. Some banks and financing companies also take processing fee. You may also, ask about a prepayment penalty if it built into the loan. You have to avoid this because it will penalize you to paying off your loan quickly. When you have compared all of your options, than submit your loan application to the bank. Before you finalize your loan, please review your paperwork. Refinancing in an auto loan is the best and smart way to increase your financial condition.

Financial Help Available with Online Debt Consolidation Loans

Applying for an Online Consolidation Loan

Online consolidation loans are done completely online. They are easy, confidential and fast in most cases. As long as nothing has to be verified by faxing paperwork to the lender, your application could go through in just a few hours or less. Your credit score will be checked without impacting your score in just a couple of minutes.

If you qualify for a loan, multiple loan offers will be presented to you instantly. You now get to choose the offer that fits your financial situation. The online loan company would then review and verify the application for the lender. The team verifying your application may need you to fax more documentation on your recent employment such as pay check stubs or ask for recent bank statements to be faxed, in order to support your application.

There is never an application fee for filling out an online application. The lending company would charge an origination fee once the borrower has accepted the loan from the investor. The fee, of one to five percent of the loan would be deducted from the loan proceeds and the balance will be deposited into the borrowers account. Some lenders do not cover all states in the United States. Check with the lender to make sure they cover your state before filling out the application.

Debt Consolidation Loans

Effects on Credit Rating
Paying back your loan on time is extremely important. If you are late, miss a payment or default on the loan, it is reported to all the credit agencies. This will give you a negative mark on your credit report. Most lending companies will give the borrower a 10 grace period and charge interest after that time. Borrowers who are always late will be reported to the credit bureaus.

Investors
The investors will never see your information that identifies you personally. They see your application for your needs, credit score and how you can pay back the loan. The investors will be going over your application so they can decide if they want to invest. Your online application will be done in complete confidence.

Qualifications
Investors will want to know that you qualify for a loan. Basic requirements usually include;

  • Must be a United States Citizen
  • be at least 18 years of age
  • Have a bank account that is verifiable
  • Completed application
  • Credit Bureau check

Most investors will also want to know your debt-to income ratio, credit history, number of accounts you have open, and your payment history. Investors may also want to know how many times in the last six months you have applied for loans.

Not all investors will give you the same terms and conditions for the loan you are requesting. You will need to read each offer over completely and evaluate your options from each investor. Some investors will give you a better interest rate, or a longer repayment time and some investors may not fund your whole loan amount.

Avoiding Delays
If you have problems with any questions you can ask the lending company for some help before it is sent to the investors. The lending company will need to verify your name, address, phone numbers, employment, and email and bank information.

Your bank account will be verified by initiating an electronic debit and credit amount of a dollar or less. This will accurately inform the lender and investor that the loan can be funded into your account and payments can be taken out automatically.

Once approved for the loan, you can expect the funds to be in your account within four days. Some loans may take up to 14 days to be approved due to more information having to be faxed to the lending company for verification. The end results for the borrower would be a loan which could be used for consolidating credit cards, smaller loans owed or for anything needed to help the borrower to get out of financial distress.

5 Things You Can Do to Rebuild Your Credit in 2014

Whether you’re making your New Year’s resolution a better credit score, or you simply want to improve your credit, there are fortunately many ways you can do so. While it may take a little self-discipline and focus, there is no reason whatsoever you cannot get your credit score back to where it should be. Having good credit is important for many reasons. You are more likely to be approved for certain types of loans, and cars, apartments, and houses are much more easily attainable. Having a good credit score also means the absence of the stress and anxiety that comes along with the burden of financial issues and debt.

budget

If you are looking to rebuild your credit for the New Year, now is the time to start. Following these five easy steps can help you do so:

Evaluate your finances— The very first thing you should do in order to start improving your credit is to obviously evaluate all aspects of your finances. Look at your bank accounts, credit and debit card statements, all sources of income, and monthly spending patterns in order to gain a good understanding of all deficits you may have. If you are unsure of your spending patterns, start taking note so you can familiarize yourself with where exactly all your money is going every month. If you aren’t already aware, you may be surprised with how much money you spend eating and going out, and other unnecessary items and services. Keeping close track of your finances will help you cut back on spending if you need to.

Make a budget— After conducting a thorough examination of your financial standing, making a budget can be possible. Budgets are extremely helpful for monitoring monthly spending as well as saving money. You should create a realistic budget that works for you, and stick to it. If you can do that, you should almost never run into financial issues because all money usage is predetermined so that everything you spend can fit into your budget. It may take some experimenting and a little adjusting, but with time you will be able to find the perfect budget that works for you and your finances.

Make all bill payments on time— Any bills you may have need to be paid on time, especially if you’ve made a habit of making late payments. While a couple late payments may not cause too much trouble besides annoying late fees, multiple in a row displays financial difficulty, and may take a toll on your credit score. To avoid this, just be sure you are making your payments on the specified date. If you find that you don’t have enough money to pay off all of your bills at the end of the month, your budget needs to be adjusted to fix this deficit. Current obligations and bills should always come first, even if it requires you to cut out some of your accustomed extravagances.

Lower credit card balances— More than one credit card as well as high balances on cards, even just one card, can be detrimental to your credit score. Try to pay in cash as much as you can so that you are not using your credit cards as much. In order to score well on a credit check, only about 10-20% of the available credit on a card should be used at any one time. Avoid maxing out cards at all costs. Seek alternatives when you need extra money, like a car title loan from TitleMax. You will have to keep close watch of what you’re using your credit card for, and it’s a good idea to only use it in cases of emergency, or when it’s unavoidable. Credit cards can be helpful for creating good credit as long as you are making card payments on time, and you can handle interest rates.

Pay off outstanding debt— If you’re deep in debt but still charging money to credit cards and spending freely, you’re definitely just digging yourself into a deeper hole. You need to strap down and get a hold on your spending, or your financial status will only keep declining. While it may be difficult at first, cutting out unnecessary superfluities, like super expensive phone plans, gym and club memberships, and vacations, will benefit you in the long run. All money saved from cutting out these luxuries can be directed toward paying off debt instead. After that debt is paid off, direct the money towards a savings account and soon enough, you can have a pretty large sum of money saved up.

Proven Tips and Tactics to Compare Home Loans

It is often deemed to be a process that is brimming with perplexity when we think of comparing home loans to find the best deal. There are a multitude of websites and financial institutions that it is but obvious to find yourself in a myriad of questions. Nevertheless, you need not fret anymore. Here are a few considerations and important factors that you may keep in mind while you compare the different home finance options and thus find the best deal for yourself.

Factors that Impact your Choice of Home Loans

1.) Ask yourself – How long will you live in the home that you are planning to purchase?

If you plan to take a long term home loan that maybe lasts for about thirty years, then the interest rate on these kinds of loans remains the same for the entire loan tenure. Thirty years is not a short time and anything may happen! This is the reason why the financial lender is at a risk and charges you with a high rate of interest.

On the contrary if you are going for a short period home loan for say five or ten years, then the financial lender is at a lesser risk. This is probably the reason why you would be charged a lesser rate of interest.

2.) Calculate the discount percentage of the varied interest rates

3.) The value of the application fee varies from one to the other

4.) There is a monthly service fee on many home loans and this again is a point of concern when you compare these home financing options

5.) There is an interest only feature in many home loans that allows the interest only period as a cumulative amount on the entire loan with a cut off at five years. This five year period can be broken down into individual interest periods any time during the home loan period.

6.) There are a few home loans that offer a redraw facility.

7.) A few financial institutions will allow their borrowers to deposit additional payments during their loan period.

8.) Not many home loan lenders offer a 100 percent offset facility

9.) You can very well avail a home loan that gives you an LVR of up to 95%. However, a couple of lenders do not give more than 80 – 90% and this again depends on a line of terms and conditions

10.) These are lengthy form of loans and thus many financial institutions offer their borrowers with a switch over facility where the loan can be moved from one form to the other for the benefit of the borrower.

To compare home loans is not an arduous task but one that involves a series of research, knowledge about the loan terms and structure and the understanding of how interest rates can be calculated and compared in order to find the best deal. Always remember, your loan agreement has to be transparent with clear and crisp information. Every individual loves to have surprises but one that comes from the lender as an additional payment is not a joyous surprise. Thus, ask as many questions as you can to your home loan lender, grab as many points as you can and then fix on the best deal.