Category Archives: Financial

Buying A Rent-to-own Car A Feasible Option

A poor credit score can become a lingering nightmare and affect numerous aspects of your life. If you are credit-challenged and wish to purchase a car, getting an auto loan approval may seem like a tedious task. However, rent-to-own cars have gained significant popularity amongst those with a bad credit score. Typically, a rent-to-own car means renting and using the car from a dealership whilst paying a down payment and making weekly payments. Once you have completed the weekly payments of the car, the ownership of the rent-to-own car shifts to you, the buyer. As the dealer requires no significant credit check for the purchase of the car, many credit-challenged individuals turn to rent-to-own cars. Although they may seem like a lucrative option, the disadvantages outweigh the benefits.

What are the Downsides of a Rent-to-Own Car?

1) Expensive Purchase

When the dealer lines up used cars under rent-to-own category, he marks them higher than other cars. As no interest rates are charged on rent-to-own cars, he tries to make a profit through sale of the car. Therefore, purchasing a rent-to-own car means paying more to own a used car with a lower resale value.

2) Frequent Payment Schedule

The payment schedule associated with a rent-to-own car is more frequent as compared to a used car. The dealer requires you to make weekly payments as against the regular monthly payments on a used car. Due to frequent payments, it can become difficult to keep tracks of payments, thereby, attracting the possibility of a late payment fee.

3) No Effect on Credit Score

Regardless of your timely payments, your credit score will not improve due to a rent-to-own car. With the purchase of a regular used car, the ability to increase your credit score is a possibility. However, with the purchase of a rent-to-own car, the payments do not reflect on your credit report and will not help in improving your credit score.

4) Absence of Warranties

There are no warranties on rent-to-own cars. As you use the cars, the probability of a breakdown is higher than a regular used car. Therefore, any repairs, damages and breakdowns are your responsibility as a buyer of a rent-to-own car.

Is there an Alternative Option?

If you do not wish to buy a rent-to-own car, you can still avail a bad credit auto loan to purchase a regular used car. The advantage with purchasing a regular used car is that monthly payments can help you structure your finances and warranties can shield your car from any potential future damages. Thus, purchasing a used car can provide greater benefits in the long run.

A damaged credit score does not necessarily mean that you should opt for a rent-to-own car. The downsides of purchasing the car include expensive purchases, frequent payment schedules, little or no effect on your credit score and absence of warranties. The good news is that purchasing a regular used car with a bad credit auto loan is a suitable alternative.

Choose The Best Suitable Mortgage Option

Borrowing money to buy a new home can be an intimidating process. There are several options and each of them comes with different benefits. But to choose the right option you don’t need to become an expert. You can plan all of it and take one step at a time.
Basics of Mortgages
The first thing you should ask yourself when buying a mortgage is whether you want a Fixed rate mortgage or Adjustable rate mortgage. These two plans are not much different from each other.
Both of these plans allow you to borrow a handsome amount of money which you can pay back in the form of monthly payments.
Under both these plans your first year payments are shifted towards the payment of interest amount and then by the time the equity on your home grows faster.
Both these types require you to disclose your credit history in the form of debt payment, income, monthly expenditures etc.
Fixed Rate Mortgage
Fixed rate mortgage plans are more suitable for most of the clients. They consist on long term i.e. 30 years plan but you can also get 10 or 15 years plan. In this plan the interest rate remains the same over the term of the mortgage. So if you were paying 4% interest rate at the beginning of the mortgage you’ll keep paying 4 till the end. The benefit of this plan is that the interest rate will not rise even if they are going up.
Adjustable Rate Mortgage
In Adjustable rate mortgage plan, the interest rate change over the term of the mortgage. It starts from an interest rate which is lower than the market rate of that time and then sets back to regular rate after some time. So the amount of monthly payment also changes with that.
ARM plan also consist of 30-years plan or so, however, the rules for this plan are incorporated in your contract. So read it carefully before you sign the mortgage papers.
Adjustable rate mortgage plans can be complex because the amount of monthly payment keeps changing over the term of the mortgage. There may be chances that you monthly payment shrinks after few years because the mortgage rates will fall. But in times of high interest rate you have to pay huge monthly payments.
Therefore it is important to consider all points before choosing any one plan. Many homeowners lost their homes in the housing crash because they were stuck with a wrong mortgage plan. Therefore consult your mortgage broker before choosing a plan. It is their job to find the best suitable mortgage deals for their clients. They have experience and knowledge so they can guide you in the best possible way.
If you have any further queries or you want to discuss your mortgage options with our professionals, you can contact us and schedule your meeting today. Our dedicated team of professionals aims to help you through the mortgage process. So the process of home buying becomes a memorable journey for you.

Think Long Term Before You Decide On Your Auto Loan Term

Life is a journey! And, buying a car will make your journey easier. Nevertheless, before you buy a car, selecting the right loan term is important. If you choose a short-term auto loan, you will have to repay the loan over a short period. The term varies between one to three years. On the other hand, a long-term auto loan has additional time for repayment. The term varies between three to nine years. It is good to know the pros and cons of the auto loan term before you sign the contract. Take time for making comparisons and make the decision process a little easier. It is essential because you have think about the big picture.

Short-Term Auto Loan – Pay more for a Short Period

Pay up Faster and Make Way for your Dream Car

Buying a new car is a costly purchase. You need an auto loan to pay for the price of the car. Short-term auto loans usually have a lower annual percentage rate. Remember, the shorter term the better it is for you. Short term guarantees you lower interest rates and higher monthly payments than a longer loan term. It means you will pay up the auto loan with a low rate of interest. There are several benefits of opting for a shorter loan term such as:

>>You can enjoy low interest rates.
>>You can get out of the auto loan debt in a short period.
>>The biggest benefit is that it helps in freeing up your money quickly!
>>It feels expensive at first, but with low interest rates, it will not hurt your financial situation.
>>The car will have a higher re-sale value when you pay off the auto loan quickly.
>>It can aid in improving your credit score.

As a car buyer, remember that a short-term auto loan offers you multiple advantages only when you make large monthly payments. In addition, you will have to do everything to reduce the loan amount. It will ensure that the monthly payments do not become a burden for you. Consider, making a large down payment to the lender. Also, remember to plan your expenses because auto loan payments will take an important chunk of your income and you will not be able to save money for the next couple of months.

Long-Term Auto Loan lets you buy an Expensive car

If you are thinking of buying a luxurious car, a long-term auto loan will be a good option for you. It is possible to afford the car expenses because monthly payments are low. The lenders will offer you affordable monthly payments in return of high interest rates. It means you can even buy a car outside your price range. Many car buyers opt for a long-term auto loan because:

1. It offers low monthly payments.
2. A car buyer with low income can afford a car easily.
3. It is ideal if you want to buy a luxurious car.
4. Regular monthly payments can increase your credit score.

However, you must remember that long-term auto loan stretches the monthly payments for a long time. In addition, you will have to cough up high interest rates to enjoy a longer loan term. Another problem is that you can be an upside down situation for a larger part of the term. It is a very risky situation because if the car breaks down, you will find it very difficult to buy a new one.

When in Great Confusion, Read the Conclusion!

There is no perfect auto loan term. As everyone has different income levels and repayment capacity, there is no one perfect loan term. When the lender offers you an auto loan term, do not be in a hurry. Determine the monthly payment that suits your household budget. Consider your future expenses. Think of major expenses such as a wedding, college fees, buying a house, etc. Pick the auto loan term accordingly. Remember, life is too short for making monthly payments for a very long time. Therefore, it is important to think hard before you make the right decision.

Makes Way For Your Financial Stability

Mismanagement of financial resources do create a lot of obstacles, which then makes it tough for you to lead a normal life, without any stress. It is a fact that you can easily deal with financial troubles when you have substantial funds by your side. But what if you do not have sufficient money to come out from the crisis? The problem area is of course your poor credit score. In such situations, taking out the loans is the most viable solution to make the survival easy. You must be thinking whether you stand a chance to avail loans in the absence of guarantor or not. At this point, there is no need to worry because you can prefer the option of loans without guarantor. These loans are can be sourced without facing too much hurdles.

Credit Checks is not required

Overcoming the financial setbacks looks always a tough task for someone who is looking for a way to manage the crisis, despite having no credible footprint. When it comes to satisfying the various financial needs and demand, you still have a chance to procure loans with no credit check and no guarantor option. Since your financial condition needs to be revitalised, managing the increasing expenses with these loans seems to be possible. Instead of getting confused, you should need to concentrate on availing these loans.

Prefer to Borrow a Small Amount

If you are trying to acquire some sort of funds, it would be preferable to opt for short term loans with no guarantor through which cash shortage problems can be solved. However, it is important to look for the best possible solution that can help you in a positive manner and this is where short term loans gain prominence. At best, these loans are meant for solving small term financial difficulties. If your credit score is not in your favour, then it is wise to acquire small amount of funds. With the loans, you will certainly find a way to deal with the cash shortage, which does provide some good respite.

Bad Credit is not an Issue

When you think about the loan, the first thing that will definitely come in your mind is credit history. Having a poor credit score always act as a trouble in the way of borrowing funds but credit score is really not a problem in the context of short term loans. In other words, the doors of borrowing short term loans for bad credit people with no guarantor option is still opened in time of urgencies. Therefore, these loans allow you to get access to the enough funds to manage the situation without much of hurdles.

Optimising solution with the right offers

As a bad credit borrower, it is true that the options of securing emergency funding are limited for you. For a change, the no guarantor loans with no credit check option seems ideal for your circumstances. The loans are made available to the borrowers, struggling with poor credit score and looking for a way to manage the cash shortage. More importantly, with this loan alternative, you are free from the compulsion of providing guarantor for borrowing the loan.

If you are in financial mess, then you can utilise these loans to accomplish your various purposes like to tackle unexpected expenses, education expenses, and medical bills and also provide comfort in financial instabilities for bad credit borrowers.

Auto Loans Technology Comes To Your Rescue

Do you remember the time when you had bought your first car? Deciding a car was one difficult thing while getting loan at nominal interest rates seemed even more difficult.

So what has changed in the recent years? What has made us so lazy yet so smart? The answer is technology! Global access to internet and widespread sharing of information has helped us reach the present stage of virtual awareness. You may not physically touch a car but you can know about each and every bolt of the car. You can compare them easily with the help of technology.

In the same way, obtaining auto loans has become a piece of cake. Thanks to the rising use of technology, applying for an auto loan is possible without even moving a single inch from your seat.

How can Technology serve you in applying for an Auto Loan?

According to Interactive Advertising Bureau, 58% of the population regularly researches for a product on internet before buying it. It is a true example of digital awareness among the buyers. If you are applying for an auto loan, look how technology comes to your rescue and helps you save your hard-earned money in the process.

E-Documents

Scan your certificates and identifications along with your signature and save it to an e-vault. Uploading your personal information can help you save a lot of your effort, time and money. Whenever you need them, you can log in the system and retrieve them quickly. It makes applying for auto loans easier. Whenever you want to get auto loans, you need to submit your e-documents without having to refer to your original documents.

Comparison and Calculations

Previously, you had to understand each and every term of the auto loan contract and manually check the interest rates. However, things are different now. You need not waste hours calculating the monthly payments. The internet does it for you within a couple of seconds.

Also, the traditional rule of applying for an auto loan with the dealer is out of the window. The merit of borrowing auto loan over the internet is that you can borrow it from any lender you like. Also, comparing various offers has become easy because of technology.

Flexibility

Time is valuable. In the old days, you had to fix a meeting with the lender and visit his office. Also, you had to negotiate in order to get the best interest rates for your auto loan. While technology has made it possible for you to obtain a loan, it has also made you the owner of your time. There are no time boundaries for applying with the lender. Whether it is night or day, you can apply for an auto loan and get approved.

Technology has made the once ‘unimaginable’ a reality. Today, car buyers are conducting thorough research before making any kind of purchase. It is the reason behind many businesses opening an online store. Technology offers you great comfort and ample choice. So why not use it to save your valuable time, effort and money? Apply for an auto loan with the help of technology and buy your new car.

Brokering Must For Availing No Guarantor Loans

With broken finances break a lot of relations. Your credit worth not only reduces chances of availing loans and credit cards but it affects your social life as well. No one wants to stand beside a falling tree. With bad debts, you would be treated like a rotten trunk. You need to learn the art to stand tall in all the seasons of life. Loans help you save face many times. You need the loan, be it a no guarantor loan to stay strong.

During bad credit situation, you are the only guarantee for the self. Whether you have failed to pay back your car loan or mortgage recently or you have too many of credit card bills that are pending from months, you need financial assistance to revoke the bad history. Raising a loan is never a solution for the bad credit situation unless you have a plan to build a good history.

It is not a legal necessity to avail services of a loan broker but a loan broker can go a long way in helping you make a blueprint to improve your credit situation. You can contact a loan broker online and use the services from the comfort of your home. He would guide you on how no guarantor loans for bad credit could be availed swiftly. Besides, he will also explain what would be the various repercussions of drawing a no guarantor loan.

What to expect when you want no guarantor loan with bad credit score?

1.The broker would show the mirror image of life after next loan. He would ask you to get ready to pay higher interest rate. When you have the bad score, a presence of a Guarantor or collateral shares risks factor associated with the application. When you apply for a loan without a guarantor, it ought to attract the higher rate of interest. Herein the added cost of a loan is brunt not only to meet the current obligations but to build score at the same time.

2.You can apply for a personal loan or a business loan as a no guarantor loan according to your situation. The loan can be applied for both short term and long term. The broker would help you avail the one despite your credit history.

3.You should apply for a loan only when it is a necessity. With bad history, your credit report would not be ready to take more red flags. Make note of your expenses and only apply for the amount you compulsively need. You should put all your energies into making the loan affordable so that you could successfully repay the loan.

4.When you apply for the loan without guarantor the responsibility to pay back the loan is entirely on your shoulders. While you contact the broker it is important that you frankly disclose your current debt situation and share your requirements.

5.There should not be any fancy expectations. As long it took to ruin the score, as long would it take to build it now?