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
By Gerri Detweiler/Credit.com Buying a car can feel stressful enough, but when you have been through bankruptcy it may feel downright terrifying. No matter what the circumstances that led to your filing -- large medical bills or a job loss, for example -- you probably feel embarrassed and afraid that no one's going to want to give you the time of day, much less a decent loan. "The most important thing to know is that you do have options," says Phil Reed, senior consumer advice editor for the car buying platform Edmunds.com. He says lenders are interested in working with borrowers who are recovering from financial problems, and in fact some dealerships are eager to sell them a car. "You shouldn't assume that no one will talk with you and that you have to take whatever someone will give you," he says. Here's how to get a car loan after bankruptcy, step-by-step. (By the way, this advice also applies to someone in the process of a Chapter 13 bankruptcy which usually takes five years to … [Read more...] about How to get a car loan after bankruptcy
By Jason Steele/Credit.com While the overall job market has improved over the past few years since the Great Recession, not everyone has been able to return to the workforce. At the same time, others are without employment because they are in school, transitioning to a new career, are stay-at-home parents, or have simply retired. In these situations, is it still possible to be approved for a credit card? It depends First of all, a job is not required to be approved for a credit card, but applicants should be able to show some form of income. For several years, the Credit CARD Act of 2009 was interpreted to allow card issuers to consider only the applicant's individual ability to repay a loan. This had the effect of shutting out many applicants, especially stay-at-home spouses. Fortunately, the Consumer Financial Protection Bureau revised its rules in 2013 to allow card issuers to consider the household income of applicants 21 years of age or older, so long as they had a reasonable … [Read more...] about Can I get a credit card if I don’t have a job?
By Jill Krasny/Credit.com With auto sales estimated to exceed 17 million in 2015, per the National Automobile Dealers Association and other analysts, you could say it was another good year for car dealers. Now we're entering a phase where a lot of pent-up demand has been met, so 2016 could turn the tides in buyers' favor, said Matt DeLorenzo, managing editor for Kelley Blue Book's KBB.com, an auto research site. "A well-informed consumer will be in a good position," he said, "but you have to do your research upfront." We've compiled a handy set of questions all rookie car buyers should ask -- both of themselves and the car dealer. Don't visit the showroom without them. Doing your homework Having a baseline of information about what type of car you want -- and how much it will cost -- can be priceless. "You have to ask yourself, 'What can I realistically afford?'" DeLorenzo said. "The showroom environment might put you in a more expensive model" than your budget can handle. Once … [Read more...] about 5 questions all first-time car buyers should ask
By Jeanine Skowronski/Credit.com You may already know that your credit scores are very important -- primarily because lenders will use a credit score to determine whether or not they'll lend you money via an auto loan, credit card or mortgage, and how much interest they'll charge on what you borrow. What you may not realize is that this year, those three-digit numbers will be even more important. Why? Well, back in December, the Federal Reserve Board elected to raise the benchmark federal-funds rate for the first time in nearly seven years -- and it's expected to do so again as the year progresses. The Fed's benchmark federal-funds rate determines how much interest financial institutions pay to borrow from one another -- and when it goes up, so does the prime rate, the lowest rate that lenders will charge their most creditworthy consumers. As you may have read, the Fed's recent move means that rates will go up on any existing variable-rate financing, like certain credit cards or home … [Read more...] about Why your credit score is even more important in 2016
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
Tina Orem, NerdWallet Published 3:15 pm, Monday, March 19, 2018 This article was first published on NerdWallet.com. Every year, the same advice circulates about what to do with your tax refund. But if the experts have said it once, they’ve said it a million times: Everybody’s financial situation is different, and what works for other people may not work for you. Here are four pieces of common advice tax pros say you might want to reconsider before you follow the herd with your refund. 1. Put it all in an emergency fund Recommended Video: Now Playing: Good Day Anchor, Page Fehling, talks with Petreana Anderson, from the Goodwill Opportunity Campus, about little-known tax credits and where you can get you taxes filed for free. Media: Brandpoint Reconsider that if: You’ve already got one. Having three to six months’ worth of living expenses on hand is good advice, but if you already have an emergency fund, using your tax … [Read more...] about Good Advice on Using Your Tax Refund Can Be Bad for You
145656988 The boss says get a credit card. Dave Ramsey says hold on now. Dear Dave: I recently got a new job that requires monthly expenses of almost $5,000 that are reimbursed. I can’t swing that kind of money right now, and my company told me to get a credit card to cover things. I’m trying to get out of debt, and I don’t like this idea. What should I do? — John Dear John: Your company should be fronting the money for these expenses. When you talk about the cost of doing business, it’s the responsibility of the company — not the employee — to pay expenses. If I send someone on the road to make money for my company, I pay the bills. It doesn’t matter if you’re talking about hotel rooms, airfare or rental cars, those are my expenses. If it’s someone who travels a lot, we give them a company debit card. If it’s just an occasional thing, we’ll give them money out of petty … [Read more...] about Dave Ramsey says: What to do when the boss says get a credit card
Your credit score is a vital part of your overall financial health. A good credit score can allow you to get the lowest interest rates on mortgages, auto loans, personal loans, and more. It can also determine whether you qualify for financing at all. A low credit score, on the other hand, could lead you to get denied for credit, pay exorbitant interest rates, and even turn to payday loans if you desperately need to borrow money. The average credit score among Americans rose in 2017, yet it's still below what most experts consider a "good" score. So how does your credit compare with the average? Read on to find out -- and to get some tips on what you can do if you're disappointed with your score. Image source: Getty Images. What's the average credit score in America? According to a new report from Experian, the average credit score for Americans in 2017 reached 675. That's up from 673 a year prior and the highest average credit score since 2012. Scores did, however, vary by … [Read more...] about How Does Your Credit Score Compare With the Average?
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?