No Credit Car Loans: Bad Credit, No Problem

If you are looking for a quick and easy car loan, a “no credit car loan” might be a good option. However, you need to know what you are getting yourself into with loans of this type.

No Credit Car Loans – the Background

The plain truth is that obtaining auto loans or any other kind of personal loan, for that matter, is not as simple as it used to be. Large commercial banks don’t want anything to do with personal loans, especially financing new cars. In most cases, people who buy a new car from a dealer wind up financing their loan through the dealership. The dealer will most likely tack additional charges onto the bottom line.

What a Buyer Might Face With No Credit Car Loans

If your credit score is less than perfect you understand that you are facing many restrictions on the type of financing you can realistically get. Lending is a high risk venture. Now more than ever. The lender evaluates your repayment history. Nobody wants to lend money to someone known for defaulting on loans. Those who do, charge more interest and apply more restrictions. More interest equals to more of the money being paid back before you default. How your credit score affects your work ethic is another story. But, it is true. Some employers will not hire you if your credit is bad.

Collateral

Collateral is a good bargaining tool. If you have enough collateral you can buy pretty much anything you want. But, if you have a poor credit history, there is a good chance you don’t have any collateral. A rock and a hard place. Just like when you were a kid. You can’t get a job without experience – you can’t get experience without a job! Likewise, just as the kind-hearted grocer gave you that first break, there are lenders willing to give you a break and help you re-establish your credit and obtain collateral.

Hazards of No Credit Car Loans

Beware of wolves wearing sheep clothing. There are lenders that prey on people with poor credit. They bank on the fact that you might not be all to credit savvy. They count on you not knowing the ins and outs of auto financing. You may be asked to pay astronomical interest in exchange for waiving credit check requirements. You could end up making payments for twenty years without ever actually paying one cent of the principal.

Similarly, you have the “title loan.” You put up your car as collateral and agree to pay back the loan in a very short time. Usually about a week. This is basically legalized loan sharking. If you borrow $200, you pay back in the neighborhood of 3-4 hundred. This may help you buy a second vehicle, but think about it – is a second vehicle really that important? Why not take the bus for a while, save up and buy your second or first vehicle without all the extra charges?

Always carefully read all of the fine print in any kind of financial deal. If a no credit car loan will benefit your financial situation without putting you out on the ledge, then go for it.

Student Loans, the Best of 4 Ways to Pay for College

Paying for a college education is not easy. With rising fees, cost of living and the general expenses that come with college life, it can be difficult to make ends meet. With no chunk of cash to call upon, the most popular way of getting around the problem is to get a student loan and defer the pressures until graduation.

There is no doubting that any loan is a risk, since eventually it must be paid back with interest. However, the advantages of seeking one of the loans for students packaged by mainstream lenders make it one of the better choices.

In total, there are four main avenues of student financing that can resolve the funding issue. And while the loans for college students are arguably the best of the lot, it is always good to know the range of options available at any time.

Getting a Loan

The chief advantage with getting a student loan is that payments can be deferred until after graduation, thereby removing much of the financial burden that student financing can otherwise have. So, instead of trying desperately to find several hundred dollars every month to keep up with repayments, a student can actually eat properly, concentrate on their studies and get on with working for their own future.

Of course, the disadvantage with loans for students is that once graduation comes around, there is an immediate need to get a job and start repaying the loan. It may take some time to secure employments, but there are other loans for college students that can consolidate their debt.

College Installment Plan

As an alternative to student loans, a college installment plan is hard to fault. College fees are broken down so, rather than paying the fees in one lump sum, it can be paid for gradually over each semester.

But this kind of student financing is perfect for those who have an income of some sort to meet with the payments. Also, it is designed for fees only, and does not address the living expenses that can accrue over the course of the year, something which general loans for college students are designed to cover.

Financial Aid

A second alternative to turning to student loans is to seek financial aid from the colleges themselves. But this is an option that is reserved for those students who have already gotten themselves into a tight financial situation and are struggling. It is not really a student financing option for those who simply want to organized their finances well.

Financial aid is not so much a loan for college students, but a rescue package for those in need, allowing them to restructure an installment plan, or seek small short term loans to ensure student welfare. Loans for students from banks and credit unions are for anyone who can repay the loan, though the financial aid office will provide advice in applying for them too.

Scholarships

The final method to pay for college is the most desirable type of student financing, since there is nothing to repay. Of course, there is also a certain prestige to winning a college scholarship, whether it is a sports or an academic scholarship, and part or full.

Compared to student loans, having an option that requires no repayment is great but, sadly, it is one that is reserved to the gifted few, not everyone.

That fact alone makes it a dream option, not a practical one, so seeking lenders that provide loans to students remains the most practical solution to the problem of funding a college education. And the fact that it can cover everything, including fees and living expenses, makes it the most comprehensive option too.

Make Sure You Know The Different Kinds Of Car Financing Loans Before Signing Up For One

Riding public transportation is something everyone has to go through. As an entry-level employee, you have to start somewhere. Unless you were lucky to be born with a silver spoon in your mouth and your parents gave you a car, consider yourself fortunate. Most people, however, have to work their way to get their dream car. Once you have built up your credibility at work and have reached a certain income level, you can now go in for car financing.

Car financing gives you the opportunity to own a car and there are several ways to achieve this. One is through a personal loan, and this happens to be one of the more popular methods. With a personal loan, you are able to borrow money from your preferred financial institution. In the end, you get to own the car since you ultimately pay for it. Once you have paid off the loan, you now have the freedom to sell it off or trade it in for another.

As you make the rounds and speak to various car finance experts, another loan you will come across is a hire purchase. This particular loan involves forming an agreement between the used or new car dealer and the buyer. With this arrangement, you will be asked to pay a deposit of anywhere from 10 to 20 percent of the total car purchase price. Monthly installments are then set based on the amount of money still owed. Getting a loan like this means you do not own the car until all monies are paid off.

Yet another loan type is a re-mortgage. This car financing method is specifically designed for homeowners. This allows you to re-mortgage your home and use the extra cash to purchase a car. For people who already own a property and have an existing loan, the same idea can implemented when it comes to refinancing the loan. Refinancing will let you get more money from your chosen financial provider which can be then applied toward your automobile payments.

While you speak to various car finance outfits, remember to sit down and determine how much you can afford to pay each month. In addition to your monthly payments, you will also have to shell out cash for insurance, gasoline, and the occasional repair and maintenance job. All these costs will add up, so make sure your monthly budget can cover these to avoid future headaches.

There are some other forms of car financing out there like interest-free and personal contract purchase. An interest-free loan is usually offered only with new cars. When you go for this, you can get a new car without paying interest on the total purchase cost.

On the other hand, a personal contract purchase is commonly found when you approach banks. Monthly payments are taken from your account for a minimum of two years and a maximum of four. You, who are both the borrower and bank account owner, have the choice to either pay off the car via a lump sum payment or return the car after the time period is complete.