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 with bad credit
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
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
ROANOKE, Va. — In 34 years of journalism, I’ve interviewed countless people who’ve earned their living in intriguing, unusual (and sometimes illegal) ways. And then last week I met a guy whose occupation beats them all. Dante Colie was a picked-on kid who barely made it through Franklin County High School. After graduation, he worked in a Pizza Hut, did construction, heating and air conditioning, sold vacuums and air cleaners. For awhile he made prosthetic arms and legs. He said he got bullied on that job, too. He called me a couple of weeks ago, pitching a column about his unfathomably high electric bills. Colie lives along a country road a few miles east of Rocky Mount. He lives alone, and works for himself in a multi-room workshop connected to his house. “What do you make?” I asked. “I build full-scale replicas of the car from the television show Knight Rider,” Colie said. That was an early 1980s sci-fi crime-fighting series with … [Read more...] about ‘I build Knight Rider cars’: Obsession with 1980s TV show led Va. man to a career. And, yes, the cars talk.
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?
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
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