Author - Zainsaeed

21 Jan

Refinance A Car Loan with Bad Credit

Refinance A Car Loan with Bad Credit

OK, your credit stinks.
However, you want a new car. So, you go to the local car dealership and believe the salesman when he says…

“Buy this car today at this high interest rate and we’ll refinance you in 12 months at the lowest interest rate possible.”

Everyday car dealers repeat the “refinance in 12 months: allegedly misrepresented to people with bad credit to push them to buy new automobiles at ridiculously high interest rates.

You may have financed an automobile through a high-interest subprime lender knowing that it’s a bad idea. But you might have thought it was your only option at the time and you justified it by telling yourself you could refinance to a lower interest rate down the road.

Unfortunately, when you try to refinance the car later on, you find out the salesman allegedly misrepresented to you.

Best Way for People with Bad Credit to Refinance

The first thing you need to find out is whether or not you even qualify to refinance, or if you should just sell or trade-in your car. Begin with how much your car is worth via “Kelly Blue Book” or “Edmunds”.

The biggest error most people make when establishing the actual value of their car is they base their research on the private party value. You need the trade-in or dealer retail value instead.

Here how to get the value of your car….

Remember that lenders who refinance usually will put up no more than 125% of the trade-in or retail value. The average amount is only 110%. So, if you are upside down on more than 10% of the value of our car, you have to pony up the difference prior to the lender giving you a loan.

If you need to calculate how much is needed to borrow to refinance, download the free Auto Refinance Worksheet and it will walk you through the steps to find out.

If you happen to not be in a position to refinance currently, there is another alternative-trade in your current automobile for another one with a manufacturer’s rebate.

Make Use of Manufacturer Rebates

A lot of auto manufacturers offer massive rebates to sell automobiles fast. There are gigantic incentives for a dealer to sell a new car.

You have to locate the highest rebate offer you can find and work toward trading in our car to eradicate any upside down condition.

Prior to going to a new car dealer, check out Edmunds and look up the rebate and interest rate on every new car and truck a manufacturer offers. This way, if the car salesman isn’t being honest with you (in relation to rebates and interest rate) you will know it.

Just go to Edmunds, and click on “New Cars,” then on “Incentives & Rebates.” You will have all the information you need.

It’s a bad situation when you’re upside down on a high-interest car loan that you want to refinance. However, you can get around it by purchasing a new car with a large rebate. You just use the rebate to offset the amount you owe on your old car.

If you come across a car with a higher rebate (highly recommended), you’re in an even better situation. If the rebate is high enough, it can wipe out the negative equity and you can use any remaining amount as the down payment.

The Secret Question to Ask the Salesperson

If you want to get a really amazing deal, try asking the salesperson this question:

“What car or truck on your lot do you need to sell immediately?”

If you’re upside down, ou need every advantage possible. Ask the dealership to sell you the oldest car in their inventory.

Some dealerships are willing to take a loss on cars they’re having difficulty selling because it costs more to keep them on the lot, as compared to selling them faster and taking a loss.

Many (not every) finance companies will require minimum score of 650 from the credit bureau they use to make a loan decision to refinance. But the only way to know each individual lenders policy is to ask.

Written by Brandon Coleman and Zain
www.killmybadcredit.com  

Instagram: https://www.instagram.com/creditbosshog/

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19 Jan

Pros and Cons of Credit Card Balance Transfers

Pros and Cons of Credit Card Balance Transfers

If you are looking to save money and get out of debt faster, you may be looking into transferring a balance from a higher-interest credit card to one with a lower interest. It is important to note that while transferring a balance can be helpful in helping you, it can also turn a difficult financial situation into a worse one.

When thinking about it, a zero percent balance transfer is enticing. A few months with no interest? Yes, please. However, in some cases, it does more damage than good. Let’s take a look at both, the pros and the cons of a balance transfer.

 

Infographic - How to make a 0% Interest Credit Card Balance 

My friends and I were once discussing how difficult it was becoming to stay on schedule with our credit card bills. There are the monthly insurance premiums, mortgages and car loans to think of, and we were not sure if our salaries (combined with our respective wifes’ salaries) could take any more load.

A balance transfer was at the back of my mind, but I did not have enough knowledge about it to even have the courage to bring up the topic. But I was fortunate to have …

What is a balance transfer?
If you have not been able to pay for your credit card debt, you can transfer the balance to another card issuer. If you do this, you might just worm your way out of additional expenses like late fees. Many people opt for balance transfer because another issuer is offering lower interest rates.

Pros:

How can you benefit from balance transfer?
If you have been unable to pay off your credit card balance, it is most likely that the finance charges are adding up to your debt on a monthly basis. By transferring your balance to another credit card, you will have the opportunity of starting anew.

You do not have to worry about being charged with late payment fees as long as you keep paying for the minimum amount due every month. It is always better if you pay more of course. If you are looking to save some money, give some thought to availing of a balance transfer card at a low rate of interest.

How can I transfer my current credit balance?
The first thing that you will have to do is look out for credit card companies that offer balance transfer. Make sure that their interest rates are much lower compared to your old card issuer – it’s possible to get 1% to 2% interest if you take your time negotiating and researching for a reputable company.

If you do your research right, you could end up with a bank that offers free balance transfers. Some will give you a grace period of six months to a year, where in they charge a lower interest on your transferred balance. Because these card issuers want your business, they will be more than happy to accommodate you. A maximum of four weeks is all that it will take.

Cons:

Would balance transfer have an effect on my credit ratings?
This is the tricky part. If you are just going to transfer the balance to another card, your credit score is safe. Some say that it is better to close the old credit account, but that is not true in most cases. Not only does part of your credit history get “erased”, your debt ratio will be affected negatively especially if your new card has a lower credit limit.

On the other hand, having an open bank account will also affect your credit score, but not as much as closing it. The best thing to do is to keep both accounts open. The old credit card can be discarded, or you can use it as before. But take care to make payments on the transferred amount.

Conclusion:

There is a lot of interest in 0% APR Balance Transfer credit cards because of the tremendous savings possibilities they offer. You don’t have to be an MIT graduate to understand that the 20% you are paying to a high-interest credit card on a balance of $ 10,000.00 is two grand; and if the interest on your credit card was 0% APR, that money would stay in your pocket. It turns out, however, that not all 0% APR credit cards are the same. Major credit card companies, who are competing fiercely with each other at this moment, use a variety of enhancement programs that combine the idea of 0 % APR Balance Transfers and with other add-on bonuses. Consider the offerings of three of the largest credit card companies, how they are similar in terms of the basics, but are putting a twist on benefits:

The Chase Platinum Credit Card

Chase bank has been in the credit card business for a long time, and this card is their standard offer. It has 0% APR on all purchases and balance transfers, provides free online account access, and does not charge an annual fee. The only question about this card is how long does the 0% APR last; and the answer depends on your credit. If you have excellent credit, Chase will give you 0% APR on purchases and balance transfers for a full year. If your credit is good enough to qualify for the card, but not quite good enough to meet the higher standards, that period of 0% APR drops. Still, the opportunity to transfer balances and make purchases at 0% APR makes Chase a good choice.

The Miles Card from Discover

Another industry heavyweight, Discover, has 0% APR credit cards available for purchases and balance transfers. The Miles Card, however, adds the benefit of accumulating airline miles to help consumers choose Discover over everyone else. The company touts their 0% APR credit card for its twelve month duration and the ability to include balance transfers at no interest. The real inducement, however, is the 12,000 mile sign-up bonus and one-mile-for-one-dollar point award. Just to make the deal a little sweeter; there are no blackout dates for these miles and you can fly any airline at any time. You have to have good credit to get one, but the Miles Card from Discover may be a good way to save interest on purchases and balance transfers while building up miles for the next vacation.

Citi® Diamond Preferred® Rewards Card

This 0% APR credit card from Citi not only gives you 12 months of interest-free funds and no balance transfer charges, it also has a points reward system that gives you redeemable points based on purchases. The program works by offering five reward points for every dollar spent on purchases made at supermarkets, drugstores and gas stations; all other purchases get one point per dollar. You get 5,000 bonus points when you get your card, which can be redeemed for a $ 50.00 gift card after your first purchase. Like the Discover card, you will need good credit to get this 0% APR card, but the initial bonus points and rapid accumulation of reward points for purchases of the basic necessities of life could make this just the card for you.

5 MONTHS 0% INTRO APR | 1.5% CASH BACK

These days, the question is no longer about finding a 0% APR credit card or a 0% Balance Transfer card; the issue is how would you like that card—with extra months of interest-free money, airline miles, or other rewards such as incentive point programs? Any person who is currently carrying balances on high-interest credit cards should shop online and take a look at the 0% APR and 0% Balance Transfer credit cards from Chase, Discover, Citi and other companies. You may just find the right card for you.

Article by Brandon Coleman & Zain

www.killmybadcredit.com 

Instagram: https://www.instagram.com/creditbosshog/ 

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19 Jan

Home Finance – 20 Questions For Your Lender

Home Finance – 20 Questions For Your Lender

With the cost of homes steadily rising, it wouldn’t be surprising if people were looking for a way to save even the smallest amount of money on their home purchase. And between the down payment, closing costs, inspections, PMI, and more, the cost of a home can quickly add up.

Paying interest on your mortgage isn’t avoidable, but you don’t have to feel like you don’t have any control over how much you pay. As you start the homebuying process, you’ll want to consider what factors into the total cost of your loan. The reason being you can improve your chances of saving some cash, especially when it comes to your interest rate.

Warning! Home finance has blossomed into an incredibly diverse and complicated industry. This is good and bad. There are at least a hundred ways to borrow the money for your next home now. There are also dozens of ways for lenders to take advantage of you, from hidden charges to prepayment penalties and more.

Let your lender explain all the various home loans and home finance options available. However, when you finally decide on a product you like, ask as many of the following as are relevant to your loan. These are the questions that will protect you.

Home Finance – Questions For The Lender

– What is the interest rate?

– What is the APR (annual percentage rate; includes fees, points and mortgage insurance)?

– What is the initial rate (if it is an ARM – adjustable rate mortgage)?

– What is the highest the rate can go to next year (ARM)?

– What are the annual and lifetime caps on the interest rate and payment (ARM)?

– How often is the rate or payment adjusted, and when (ARM)?

– What index is the rate based on (ARM)?

– What margin is added to the index (ARM – it might be the index plus 3%, for example)?

– Is credit life insurance required (this pays off the loan if you die)?

– How much would the payment be without it?

– Can any of the fees or costs be waived?

– Is there a prepayment penalty?

– How much is the prepayment penalty?

– For how long is the penalty in force?

– Are extra principal payments allowed?

– Is an interest rate lock-in available? (guarantees interest rate for a time)

– Can I have the lock-in in writing?

– Is the rate locked in at time of application or time of approval?

– If rates drop, can I get a lower rate locked-in?

– What inspections and/or surveys are required?

– Is a title search and/or title insurance required, and what is the cost?

– Can I get an estimate of prepaid amounts that I’ll have to pay at closing?

– Are there “points,” and what will these cost (discount points to reduce interest rate)?

– What state taxes, local taxes, stamp taxes and transfer taxes will I have to pay?

– Will a flood determination be required (to see if the home needs flood insurance)?

– What other costs will there be?

– Is there anything else I should know?

Lenders may not like getting two dozen questions thrown at them, but you have a right to ask before you agree to a loan. Did you know that a 1% higher interest rate on a $150,000 loan can cost you an extra $30,000 over the years? Home finance can be as important as a good price when it comes to saving money on your home.

Article by Brandon Coleman and Zain

www.killmybadcredit.com

 

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