Let's say big credit card balances and some late payments have hurt your credit score while problems with your car make you worry about getting to work dependably. Unlikely as it seems, you may be able to get a new car loan. "Contrary to conventional wisdom, there are a number of reasons why a lender would help somebody with a troubled credit history buy a new car," says Ronald Montoya, consumer advice editor for Edmunds.com. He notes that new cars are better than used ones as loan collateral and that borrowers are less likely to have to divert money from loan payments to maintenance and repairs. So-called subprime loans -- usually involving credit scores of 620 or less -- have grown in the recovery from the 2008 financial crisis and now represent about one-fourth of all car loans and 15 percent of loans for new cars. So clearly loans are available for car shoppers with less-than-perfect credit. If you want to increase your chances of buying a new car that will fit into your … [Read more...] about Bad credit? Tips on how you can finance a new car
Car finance bad credit
A bad credit rating can affect you in unexpected ways. A new study by InsuranceQuotes.com found that car owners with bad credit but perfect driving records can pay two to three times more in auto insurance premiums than those with excellent credit. The study found that, on average, car owners with fair credit paid 28 percent more than a driver with excellent credit. And with poor credit, that jumps to 104 percent greater premiums -- more than double the rate for owners with excellent credit. That difference can lead a tripling of insurance premiums in some places. Arizona, New Jersey, Nevada, Nebraska and Oklahoma shows more than 200 percent premium hikes for poor credit drivers versus those with excellent credit. If you live in California, Hawaii or Massachusetts, your credit rating doesn’t affect your auto insurance costs because those states have forbidden the practice. But in all other states, your credit rating definitely figures in. “What’s really … [Read more...] about Crumple zone: Bad credit and auto insurance costs
Before falling in love with a red — or midnight blue — car, it's a good idea to do a bit more homework than simply deciding what you'd like to spend on a monthly car payment.Car loans continue to be relatively low — and plentiful. But the origination of new car loans for subprime borrowers has hit a record low, according to Experian's data through the third quarter.So paying attention to your credit score matters. The average new car loan amount was $30,329 for vehicles financed in the third quarter, according to Experian. Borrowers with bad credit financed far less. The average new car loan amount was $25,031 for vehicles financed in the third quarter for borrowers with deep subprime credit, defined as a consumer with credit scores in the range of 300 to 500. The average new car loan payment overall was $502; the average new lease payment was $412 a month.To hold down their overall costs, car buyers can take a variety of steps. Car … [Read more...] about How do you find the car you’ll love and still afford?
What do you plan to be in 2018? Healthy, wealthy and wise? Or, another year older and deeper in debt?For most mere mortals, managing money is a royal pain in the cash register. And managing credit can be even more vexing. But, it can be done.First, make sure you have the best credit card for you. WalletHub reviewed over 1,000 credit card offers and came up with the best cards (and offers) for 2018. See the offers here. Prosecutor: Man used dead people's IDs to get credit cards Taxes: Some NJ homeowners rush to prepay 2018 property taxes before new law takes hold The site lists the 18 best credit cards for your particular credit situation, from excellent credit all the way down to stinky. (See full list below.) The site also includes quick links, in case you want to apply ASAP.As for the offers, WalletHub says the best credit card for travel rewards is the Barclaycard Arrival Plus World Elite Mastercard. (There is no annual fee for the first year, $89 thereafter, … [Read more...] about Best credit card deals for 2018, according to WalletHub
Research support for this article was provided by The Investigative Fund at The Nation Institute and by an Alfred Knobler Fellowship. Sam Black woke up one morning not long after retiring to Charleston, South Carolina, with chest pains he didn’t realize would change his life. He took a shower and ate breakfast before his wife, Elsie, got him out the door to see his heart doctor. Within hours, the doctor cracked Sam’s chest open to do a triple bypass. “They had the surgery early that morning,” Elsie recalls, piecing together the fragmented memory of someone who has survived a sudden trauma. Sam made it through the first operation all right, but later that night the hospital called Elsie. “We gonna have to take your husband back to surgery,” she says they told her. “Something went wrong.” For the next seven weeks, Sam lay in a coma in the intensive care unit. Elsie says the doctor told her that when Sam comes to, “he might not … [Read more...] about Bad Credit: How Payday Lenders Evade Regulation
Having trouble getting a car loan? Don’t worry – everyone hits a rough patch. But this time it may have less to do with that late payment and more to do with the automotive lending business. For the second consecutive quarter, lending institutions have tightened available credit – a seemingly cautious move that means car buyers with a “subprime” credit rating may be left taking the bus – or more likely paying a higher rate for their loan. Subprime is the designation lenders use to define customers who have less-than ideal credit; usually a FICO score of 660 will earn you membership in the club, as will a foreclosure or a bankruptcy. Back in 2007, subprime mortgage loans made headlines for the part they played in the Great Recession. Here and now in 2017, however, banks are looking at the auto market through a slightly different lens. According to Experian data, “the share of loans extended to borrowers with subprime and deep subprime … [Read more...] about Subprime conditions: Bad credit car buyers are getting the squeeze on car loans
Microwave ovens eventually die and require replacement. When mine started making an odd popping sound and emitting an electrical smell during use, I unplugged it, went to the closest store known to sell microwave ovens, bought a new one, plugged it in, and then continued heating up leftovers for lunch. It took less than an hour. Cars eventually die and require replacement. People don’t buy cars like they buy microwave ovens. You never wake up, decide to buy a new car, walk into a dealership showroom, swipe a credit or debit card, and drive away in less than an hour. FOLLOW DAILY NEWS AUTOS ON FACEBOOK. MAKE THE RIGHT DECISION AND 'LIKE' US HERE. J.D. Power research confirms this. In recent years, the company’s New Autoshopper Study has found that about 80 percent of car buyers use the Internet to research new vehicle purchases, spend an average of 14 hours doing so, and take an average of four months to make a decision about which make and model to buy. As a person who … [Read more...] about 8 Important Decisions to Make Before Buying a New Car
Will sticker shock — coupled with three rounds of possible interest rate hikes in 2017 — drive more consumers out of the new-car market?As the auto industry comes off back-to-back record sales years, some auto experts are questioning how high sales for new cars and trucks can grow given existing challenges and expected new higher-rate hurdles in 2017.Consumers are dealing with a world where some costs are going up far faster than many incomes. As interest rates go up, the cost of existing debt on credit cards and other variable rate loans will go up, as well.Before shopping for a new car, SUV or truck, it is becoming more important than ever to start out asking: What exactly can I afford? What's a reasonable monthly payment? What other costs do I need to consider? And, really, how long do I expect to hold onto that new vehicle?"A lot of cars here today are 50-grand or more. Most people can't afford that," said Ryan Fortenbacher, 35, who was visiting the North … [Read more...] about How much is too much for a car payment?
Buying a new or used car can be an intimidating experience.Many car salespeople may pressure you to leave the lot with a purchased vehicle, so it’s crucial you’re armed with information about the cars you are interested in, the budget you can afford, and the value of your trade-in — if you have one. With these details, you have all the tools you need to negotiate properly.Here are 10 tips and strategies for making sure you get the best-quality vehicle at the lowest price.1. Think about financingPrior to visiting any dealership, have a sense of what kind of deposit you can put down and what monthly payment you can afford. It also helps to do some research on available auto loans to get a sense of what you qualify for. Or try a service like AutoGravity, which allows you to select rates and terms that fit your budget and then obtain offers from lenders.2. Check your credit scoreKnowing your credit score can be helpful as well. Justin Lavelle, chief … [Read more...] about 10 things you need to know before buying a car
IT'S THE ULTIMATE back-to-school shopping experience for high school and college kids: buying a car of your own. Don't saddle yourself with a ride you can't afford - and ruin your credit rating before you become an adult, experts warn. "Your GPA will be long forgotten after you leave school, but your credit score will stay with you through your life," said Eric Hoffman, a spokesman for AWARE, an auto industry-funded group that educates consumers about car financing. It takes years to repair a damaged credit rating - and a bad credit rating affects your ability to rent or buy a home, and even get a job. Students can get car loans on their own if they have substantial part-time jobs, or can show their lender bank statements indicating thousands of dollars of savings, he said. Otherwise, they'll need a parent or other adult to co-sign their car loan. If the co-signer has a good credit score, they should be able to get financing at a lower interest rate. "For kids, buying a car … [Read more...] about SHOPPING FOR CAR 101. STUDENTS NEED TO HAVE THE NUMBERS DOWN PAT FOR FIRST PURCHASE