Car Loans For People With Bad Credit » budgeting http://www.loanlog.com Get the right advice if you need a car loan with bad credit! Tue, 15 Dec 2009 11:39:21 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 What to Look for in a Car Loan http://www.loanlog.com/what-to-look-for-in-a-car-loan/ http://www.loanlog.com/what-to-look-for-in-a-car-loan/#comments Wed, 26 Aug 2009 08:06:56 +0000 Dave http://www.loanlog.com/?p=11 It is hard enough to live without solid and dependable transportation. Therefore, when one looks to take a loan out on a vehicle, he/she should expect to do so easily and without any headaches. However, this is not always the case. Let’s face it, car dealers are out there to make money. In all honesty, most would do so dishonestly if they had the chance. And, some do so on a regular basis. As a consumer, buyer, and customer, you have the right to be informed and the right to not be taken advantage of. Therefore, there are a few important things you should consider and look for in a car loan:

Budget – This is probably the most important. If you take a car loan that you cannot afford, you will be stuck with a financial obligation for the next several years; if you cannot afford the monthly payment, you will go into debt. Furthermore, some states require you pay tax on your vehicle every year. In most states, this is based on the value of the vehicle; therefore, a more expensive vehicle will hold a higher tax obligation at the end of the year.

Interest Rate – The interest rate is the percentage that the bank or lender is collecting for lending you the money. Most of the time if you are buying from a ‘buy here pay here’ lot, you can expect a much larger interest rate than if you buy from a dealership.

Warranty – Some smaller lots that sell older cars do not give warranties with the purchase of their vehicles. This could be important to you if you are purchasing a vehicle that might end up breaking down and needing repair. Typically, newer vehicles come with a warranty of some kind.

The aforementioned points are the most important things to consider when obtaining a car loan. In addition to these factors, one should consider the vehicle he/she is purchasing. It should have enough room, be dependable, and last for the entire term of the loan and beyond. If you get trapped in a car that will not last the entire term of the loan, you will be stuck paying on a vehicle that does not even run.

]]> http://www.loanlog.com/what-to-look-for-in-a-car-loan/feed/ 0 Investments and bad credit http://www.loanlog.com/investments-and-bad-credit/ http://www.loanlog.com/investments-and-bad-credit/#comments Sat, 15 Aug 2009 10:53:14 +0000 Dave http://www.loanlog.com/?p=34 If you have bad credit, getting a car loan can be difficult – as we have already discussed. For many consumers, finding themselves in this position can make other financial strategies like saving or even investing your money a bit of a pipe dream. However without taking some kind of action, no matter how small, it is unlikely that anyone will be able to change their circumstances. Investments will not affect your credit score at all but if you are able to derive a small portion of your income from your investments, you might be able to put this to work paying down credit cards or loans and get ahead this way. But at the end of the day, you need to look realistically at how to get the best return for your money. If you have a car loan at 12% interest and you think you can only make 9% back from shares, it would be foolish to divert money away from your loan repayments.

If, however, you have an investment opportunity that allows you to reliably make back more than you would lose in interest paid on your loan, it might be worth reducing your loan repayments to the minimum. If this all sounds too complicated, don’t panic! There are some good software programs around that can help you to plan all of this out. For example, check out this review of checklist investor. This software lets you comprehensively plan and track your investments to give you a clear picture of where to put your money.

Whatever you do, try to minimize your every day living expenses by cutting down on unnecessary items like takeaway, expensive cable, etc. All the little things add up to a fair chunk of money that you can put back to work paying debts to improve your credit rating, or investing so that you will be able to get ahead in future!

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