Preparing for Your First Mortgage: Tips for Millenials

4 Tips to Help Bad Credit Borrowers Negotiate Down the Price of a New Car

Posted by on Jul 19, 2016 in Uncategorized | Comments Off on 4 Tips to Help Bad Credit Borrowers Negotiate Down the Price of a New Car

Having bad credit lowers your negotiating power with a credit provider, since you are considered a moderate- or high-lending risk. Nonetheless, there are a number of opportunities you can explore, including providers that specialize in offering secured and unsecured bad credit car financing. Taking a smaller loan not only improves your chances of securing approval, it will also help you spend less, which is vital to rebuilding your credit score for future borrowing. Below are negotiating tips to help you get started: 1. Offer and leave, at first Begin by offering the salesperson your best price (within an acceptable range of the offer price) without negotiating. Simply tell the salesperson that you will buy immediately they match your price. Leave them your card and go. Someone will call you if your offer is within acceptable range. Avoid high car-sales seasons such as the holidays and around graduation when parents buy cars to gift new graduates. Dealerships are more ready to give in during low sales periods. 2. Pick your follow-up times If nobody calls, wait until a weekend and call in shortly before closing. Ask for the salesperson with whom you were dealing and remind them that your offer to sign the paperwork if they match your price stands. The salesperson won’t pass the chance to make one final sale for the week, particularly if your price is a possibility and they’ve had a low weekend. Month-ends are also ideal times to follow up, since salespeople are under pressure to meet sales targets and will budge more easily. Another idea is to call in following a bad-weather day. Such days typically have lower sales, which can increase your bargaining power. 3. Work with multiple dealers Do the same thing with two or three dealers in your area who have the car you want. Visiting multiple dealerships will give you an idea about the true value of the car you’re buying. You can also look online for market estimates so that you have a good place to start. Set your price $500-1000 lower than the market value. You will need to call aggressively, but you just might land the dealer willing to match that offer to close a sale, especially when sales have been bad. 4. Get your own financing where possible If you can, secure your own financing from a bad credit auto loan provider. This will give you an idea on what type of cars to look at and your maximum expenditure. In addition, should the salesperson give in to your offer, you can close immediately as promised. However, you may need to work with the dealership’s financier if you’re taking advantage of some offer, e.g. special interest rates. In this case, be prepared to say no to terms that you don’t need. Just because you have bad credit doesn’t mean that you have to say yes to their auxiliary offers like extended warranty. Remember your goal is to keep your spending minimal. Be polite but...

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3 Smart Ways to Be Approved For Used Car Financing

Posted by on Jun 7, 2016 in Uncategorized | Comments Off on 3 Smart Ways to Be Approved For Used Car Financing

If you are thinking about buying a used car, you will have the opportunity to save money on the purchase, but you may still need financing. However, before you rush to a dealership and apply for the first loan you find, it is a good idea to do some planning and research first. Here are some ways to be smart about applying for used car financing. Know Your Credit Rating Beforehand One of the first things you should do before you apply for any type of loan, including a used car loan, is figure out what your credit rating is. This includes requesting a copy of your credit report and getting your most recent score. The credit report lists information such as collections, public records and other information that pertains to your credit score. The score is what lenders use when determining if you are approved and what your interest rate will be. When you get your credit report, look through it thoroughly to be sure it is accurate. If you find any information that doesn’t look familiar, contact the credit bureau to get more information. It is possible that someone used your name for a line of credit, which would be fraud and should not be held against you. With this report, you will also be able to explain any collections to the lender, which helps when you think you are at risk of being denied the loan. Provide Solid Proof of Income The next thing the lender wants to see is that you have the ability to make the car payments. They want to know where you work, what you do and about how much you earn. The lender is going to ask for your employment information and proof of your income, often through a combination of paystubs and bank account statements. Keep in mind that if you have a relatively new job, you should probably work a few more months before applying for the used car financing. Some lenders have strict requirements with how long you need to be at your job before approving you to be sure it is going to be a long-term, stable job. Keep the Length of the Loan Minimal While it can seem tempting to get a longer loan term so you have lower monthly payments, this isn’t always a good idea. In some cases, you actually get a better interest rate when you choose a shorter loan, which also helps to lower the monthly payments. Consider how much you can comfortably pay each month for the car loan, and find out what the interest rate versus the payments would be for each length of time. You might just find it worth it to lower the length, therefore helping you pay the car off faster. As with all car loans, also be prepared to provide a down payment and have references. You might need a co-signer if your credit is less than...

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Four Benefits of Migrant Mortgages

Posted by on Dec 15, 2015 in Uncategorized | Comments Off on Four Benefits of Migrant Mortgages

While the primary purpose of a migrant mortgage is to help you buy a home, there are additional benefits. In particular, if you are trying to extend your visa or are applying to bring over a fiance or other family members, home ownership may help. Here’s a look at how: 1. Owning a home shows residential commitment to Australia. When you use a migrant mortgage to buy a home, you further the process of establishing yourself in Australia. If you are working with immigration officials, it always help to look as stable as possible, and home ownership helps to paint the picture of stability. 2. Owning a home shows you can provide for your family. If your family members are applying for visas to immigrate to Australia, they may need to use as a sponsor throughout the process. Of course, there are a number of traits immigration officials look for in a sponsor and certain requirements they have, but if you can show your ability to take care of your family, that helps the process. For example, to be approved for a partner visa, you must be willing to support your partner during their first two years in Australia. If you have purchased a home with a migrant mortgage, it shows that you have a steady income and are likely to be able to handle that responsibility. 3. A migrant mortgage can help build your credit history. As you repay your migrant mortgage on a timely basis, you create a positive credit history for yourself. Australian bankers look at this history when deciding whether or not to approve you for other loans, and having a positive credit history may eventually help you get low interest car loans, business loans or other types of credit opportunities. As you attempt to welcome your new family into the country or as your family grows with your new spouse, these borrowing opportunities may help you access the success you need. 4. A migrant mortgage is an investment. Finally, when you buy a home with a migrant mortgage, the home is an investment. In many cases, when you buy a home, it ultimately appreciates in value. In 2014, homes in Australia’s largest cities, in fact, increased in value by close to 7 percent. In a single year, that is a nice return on investment. By getting approved for a migrant mortgage, you start the ladder of home ownership, potentially building wealth which can ultimately help you and your family as you live in Australia. To learn more, talk to a migrant mortgage broker....

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Why It May Be Advisable to Keep a Car Loan Repayment Period Short

Posted by on Oct 26, 2015 in Uncategorized | Comments Off on Why It May Be Advisable to Keep a Car Loan Repayment Period Short

The tough economic times have compelled many people to look for ways to limit how much they spend each month. One way has been to negotiate a long duration for car loans, so that monthly payments are as low as possible. This article discusses three reasons why it may be better for you to limit the number of months over which you will repay your car loan. Negative Equity Your home and your car may be your biggest assets. As such, it may be good to have equity in both of those assets so that you can refinance in order to get more cash for urgent expenses, such as paying for medical care that is not covered by your insurance. A long repayment period delays equity building in your car. This is because annual depreciation may render you to be indebted to a level that is higher than the value of the car, especially if the down payment you made was very low. A shorter repayment period helps you to build equity faster, since you make bigger monthly payments and reduce the car loan quickly. Car Fatigue Carmakers are constantly bringing new models of cars onto the market. Those new cars may be more fuel efficient and more attractive than earlier models. Consequently, you may wish to trade in your current car for a new one. Long repayment schedules mean that you may continue making car loan payments without a break.  To some people, that can appear no different from a car lease. A short repayment period allows you to pay off the loan and take a break before you buy another car and resume car loan payments. Low Resale Value Lengthy car-loan repayment periods may also lead you to delay to put your car on the used car market. This is because buyers prefer to buy cars that are free from any encumbrances. For instance, a 5-year car loan allows you to sell your car when it is 5-years old while a 7-year loan may make you put off that sale for an extra two years. From a buyer’s perspective, a 5-year old car may be more attractive than a 7-year old car of the same make and model. That is why you should be foresighted enough to negotiate a shorter repayment period for your car loan. As you can see, you need to consider several factors before requesting for a lengthy car-loan repayment period. Use the information above to ask for the shortest repayment period that your finances can allow so that you avoid the pitfalls of repaying a car loan for very many...

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7 Tips to Help Improve Your Credit Rating

Posted by on Jun 11, 2015 in Uncategorized | Comments Off on 7 Tips to Help Improve Your Credit Rating

Before asking a mortgage broker to find you a suitable home loan, it’s important that you take steps to ensure that your credit score is as favourable as possible. Without a decent credit rating you might not be considered a ‘safe bet’ by many mortgage lenders, and you could struggle to obtain the finance you need to buy a house. Here’s some advice on how you can improve your credit rating and give your broker the best possible chance of securing you a good deal. Electoral role Financiers check the electoral role as a way of verifying your identity. If you’ve recently emigrated or have just moved house, your details may not be on the electoral register. Make sure that you register with your local authority so that all your details appear on your credit report. Correct errors and omissions on your credit report Obtain a copy of your credit report from one of the main credit reference agencies and check the information contained within it carefully. The simplest of errors or omissions could mean that your mortgage application is turned down. If you discover any incorrect or missing information, contact the credit reference agency immediately as ask them to amend your details. Distance yourself from others with bad credit If you have a joint credit card or mortgage with someone who has a poor credit history, this can affect your own credit score. Under these circumstances you are best advised to keep your financial arrangements completely separate so as to avoid being ‘tarred with the same brush’ as someone who is not viewed by potential lenders as a safe risk. Cancel unused credit cards If you have a collection of credit or store cards that you never use, chop them up and throw them away then contact the card issuer and close your accounts. Banks do not like mortgage applicants who hold multiple unused credit cards, even if the balance on them is zero. This is because there is always a risk that you will one day ‘max-out’ on your cards which could leave you financially overstretched and unable to meet your mortgage repayments. Observe the rules Lenders like responsible borrowers who keep their accounts in good order and play by the rules. In other words, don’t exceed your agreed credit limits on your credit cards or overdraft, and make your repayments on time and in full. Keep credit applications to a minimum Whenever you apply for credit, you leave a ‘footprint’ on your credit reference report. Multiple applications can make it appear that you’ve applied for credit over and over again and have been declined; this is a very off-putting picture for would-be lenders. Demonstrate stability Mortgage lenders like to see stability in a prospective client’s profile. You can achieve this by showing them that you have used the same bank for many years, lived at the same address for a long time, and have been in regular employment since you left the education system. In these times of economic downturn mortgage lenders are cautious about who they take on as ‘risks’. Taking steps to improve your credit rating will make your mortgage broker’s task of securing the finance you need to purchase your dream home much...

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What To Know About Taking Out A Debt Management Plan

Posted by on May 21, 2015 in Uncategorized | Comments Off on What To Know About Taking Out A Debt Management Plan

Many people, although not destitute, have built up debts over the years that affect the amount of money they have available after all the debts have been paid. Sometimes, it can get to a stage where a person cannot afford to pay all of their debts on a monthly (or weekly) basis. This means that a person is juggling their debts about; delaying paying one debt one month, then paying the next month, and so on. As this is very stressful, some people may be considering a debt management plan. Take a look in detail at what a debt management plan is, and what it would involve should you decide to take one out. The Plan Is An Agreement A debt management plan is, in actuality, an agreement between you and all of your creditors, which is mediated by a debt management plan company. Your creditors are approached by the company and asked to enter into an agreement, with all of your other creditors, whereby a bank account is created for you to deposit money in on a regular basis. An equal share of this money is sent to each of your creditors. Two important things to remember is that you will have to pay a debt company to approach your creditors with the plan, and any one of your creditors can refuse to agree. However, as you are making an offer, it is likely they will accept it; if it went to Court, they would have to explain why they were refusing money from you. Your Information If you choose to take out a debt management plan, you will have to be ready to provide some personal information. In order to make a binding agreement, the debt management company will require you to supply the following: Your income Your essential outgoings, such as food and energy bills Any assets you own Other incomes Size of debts Although divulging some of this information may make you feel uncomfortable, if you are considering a debt management plan, then you will already be under some stress. The management plan will offer a solution, whereas juggling your debts about will not. Other Costs As the debt management company are conducting business, they are entitled to a fee from you. This is no problem, as long as you are aware from the beginning what the charges are for, and how much they are. If you are in talks with a debt management company, remember to ask about their setup fee, their fee each time you deposit money (a handling fee) and their fee to approach each company. In the great majority of cases, the debt management company can secure an agreement with all of a person’s creditors. For more information, contact a company such as National...

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Strategic Borrowing: 3 Signs a Car Loan Is a Good Investment into Your Future

Posted by on May 18, 2015 in Uncategorized | Comments Off on Strategic Borrowing: 3 Signs a Car Loan Is a Good Investment into Your Future

When it comes to borrowing money, you have to be selective. If you don’t want to get mired in debt, you need to choose loans that are an investment into your future. This fact is true whether you are buying a house, a car or anything else. If you are thinking about taking out a car loan, here are three signs it is a positive investment for your long term goals and financial needs: 1. The loan helps you build up credit The enigma of credit is that you need to prove you are worthy of credit before anyone will lend you money. However, in order to prove you are worthy of credit, you need to borrow money. In most cases, the best way to sidestep this financial conundrum is by starting with small, relatively easy-to-0btain loans. This includes car loans. If you don’t have any credit, getting a car loan will help to build up your credit. In that way, it is an investment into your future as it can help you get mortgages and other financing in the future. If you already have a well developed credit portfolio, you likely don’t need a car loan to help you build up credit. 2. The loan (indirectly) gets you to work or school Taking out a loan for a vehicle is obviously much different than taking out a loan for something “frivolous” like a pair of shoes. When you take out a car loan for a vehicle that gets you to work or school, you make those things possible. This is because without borrowing the money for the vehicle, you may not have been able to take a job in a certain location or get to the classes you need to get ahead. 3. The loan covers the cost of a car you need However, when taking out a car loan, you also have to consider if you really need the car. An affordable small car can get you to work just as easily as an expensive sports car. If possible, do not borrow more than you need. A loan that covers what you need is an investment, but a loan that puts you into debt for an overly fancy car is a waste of money. If you work in sales or consulting and you need a stylish looking car, get that since it’s part of your job. However, in all other cases, wait until you can afford a luxury car in cash. Learn more about your car loan options by consulting companies like SMA Finance....

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