Posts from the ‘Facts!! You should know’ Category

Emergencies can ruin your planned finances!

How about getting your morning tea at 12:00 hours and your lunch at late evening? This routine would be considered as terrible. So, to avoid such incongruity, everything in life should be planned. It is important that we know where we are investing, what you will do and where you go; so design your life in such a way to avoid any confusion or uncertainty.

When it comes to finances one need to be extra careful in handling money. An account of all; the daily expenses, extra expenses and any scheduled expenses are always necessary. However, how best you plan to keep your finances intact, it’s difficult to entirely secure it. Emergency or external factors may ruin or challenge your plans. A big emergency in form of natural calamity to secondary factors like shares downfall or loss of job etc. can leave you standalone.

To our rescue there are many funds in form of loan but what if you already own one? and are unable to bear its brunt. Would you take another loan to fulfill the requirement? Not a smart move, the move should be to smartly handle the situation and go for a loan modification.

Unlike home loans, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. So avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name.  What would be the best option? The best option will be to go for auto loan modification to make your payments low and rescue from this hassle.

How about getting your morning tea at 12:00 hours and your lunch at late evening? This routine would be considered as terrible. So, to avoid such incongruity, everything in life should be planned. It is important that we know where we are investing, what you will do and where you go; so design your life in such a way to avoid any confusion or uncertainty.

When it comes to finances one need to be extra careful in handling money. An account of all; the daily expenses, extra expenses and any scheduled expenses are always necessary. However, how best you plan to keep your finances intact, it’s difficult to entirely secure it. Emergency or external factors may ruin or challenge your plans. A big emergency in form of natural calamity to secondary factors like shares downfall or loss of job etc. can leave you standalone.

To our rescue there are many funds in form of loan but what if you already own one? and are unable to bear its brunt. Would you take another loan to fulfill the requirement? Not a smart move, the move should be to smartly handle the situation and go for a loan modification.

Unlike home loans

, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. Anthony Tribunella, the director of Auto relief group says, “Avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name.” What would be the best option? The best option will be to go for auto loan modification to make your payments low and rescue from this hassle.

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Smart people spend on right things

It becomes very difficult to manage your life if your expenses become more than your disposable income. It usually leads to more number of debts, non-payment of loans resulting in repossessions and foreclosures, bankruptcy, etc. It significantly increases your mental burden with unpaid bills if not paid on time, increases the bill amount with penalties and late fee charges.

In times of financial crisis, one must take a smart decision to go for an auto loan modification which helps reduce the monthly amount to be paid to banks. The loan modification service providers are specialists and they negotiate/ renegotiate your loan terms with your respective banks/ financial institutions on behalf of you.

While there are no universal rules, our experience shows that the earlier you start the process the better your chances of negotiating a successful transaction.  Lenders hate wasting more time and money on “bad” deals and prefer to get constructive proposals that make sense. It is never too early to start your modification process.

Unlike home loans, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. Avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name. Know Your Options. Typical options include vehicle refinancing, sale, trade up, equity recapture or loan modification.

Additionally, report contains up-to-date information about your vehicle including current market value (based on real time data from auctions around the country) and even forecasted depreciation for the next 12, 24 and 36 months based on actual market dynamics. Since every situation is different, it is impossible to suggest which option is best suited for your particular needs. Obtaining your own Options Report™ is essential to understanding your choices before attempting any loan actions.

Thus, it is up to you to decide where you want to spend your money. Smart people always spend on right things.

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How to lessen your Car Loan payments?

Automobile is now categorized under basic necessities as life without it is unimaginable. We need a car for almost every work we do in our daily routine. However the current economic climate doesn’t give us the freedom to purchase a vehicle without availing for an auto loan.

All are not ready to pay the high interest rates and monthly payments for their vehicle. And if they miss out on timely payments then banks may even send them a notice for repossession. Repossession affects your credit score badly and remains there for almost seven years. The best thing you can do here is go for an auto loan modification.

It is never too early to start your modification process. Unlike home loans, obtaining a new car loan may be very challenging after a repossession, which stays on your credit report for a minimum of seven years. Avoid the pitfalls of “post-repo” car shopping by keeping the car you have and protecting your good name.

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Various vehicle expenses delay auto loan payments

Owning a car involves a lot of expenses which we do not realize while purchasing one. Fuel prices are increasing day-by-day and maintenance charges are unavoidable. The recent economic slowdown has badly affected the pockets of Americans. It was highly challenging for them to cope up with all expenditures on their vehicles plus their auto loan payments. Compromising on their fuel and maintenance expenditures is practically not possible; hence, they delayed their monthly loan payments and entered into a situation where banks gave orders for repossession.

Repossession lowers an individual’s credit score which remains there for at least 7 years which further creates problems if you want to apply for loan in future. In this case, you will have to go for a bad credit loan with a higher interest rate. So, what is the solution to all these problems? Uncontrollable and unavoidable expenses have to be borne by you in any situation, however try to contact a loan modification service provider that can help you reduce your loan payments.

Loan modifiers are experts in negotiating loan amounts with banks and financial institutions to help their clients give a comfortable time and price spread over time, to avoid delay as well as non-payment of auto loan payments.

While there are no universal rules, our experience shows that the earlier you start the process the better your chances of negotiating a successful transaction. Lenders hate wasting more time and money on “bad” deals and prefer to get constructive proposals that make sense.

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Factors that can cause loan rejections

A person having a stable job with a decent salary, in a reputed company may feel that getting a loan will be a smooth process.

“Jim, one of my clients, had a problem in obtaining a home loan due to some of his delayed payments several years back. At first when he approached to a bank his loan application was rejected and he thought that there was some issue with the bank, however when his application was again rejected by the second bank too, he knew that something is wrong or missing due to which he is not able to obtain a loan”.

“Jim soon realized that he had some dollars remaining due in his credit card. Most of us face such situations and finally end up paying higher interest rates”.

Some of the reasons which can lead to your loan rejection are:

  • Non-payment of dues – If a person has genuinely not paid his dues, it will be noted in his credit score. It seriously hampers your credit score and you find it difficult to avail any type of loan.
  • Human Error – By human error if any of your payments is not updated, it lowers your credit score.
  • Settled accounts – There are instances when you and your bank end up in a mutual settlement of your loans. Suppose you pay 60000 for a loan payment of 100000, the remaining 40000 is taken as loss and is shown in your credit score card. This is another reason for rejection of your loan application.
  • Loans not closed properly – In some cases even if you pay all your dues, there can be a chance when bank forget to enter it in your credit report which can create problems in future. Thus, make sure that you follow up with your banks and remind them to enter your payments in proper records.

As per the law, credit information is retained for seven years. Thus it is important that we be more careful to see whether banks enter all our payments correctly to prevent any hassles in future.

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New Car Buyers – Better Avoid these…

It is a general philosophy, people say to don’t lie, don’t over exaggerate, don’t suspect each and every move others as if they are going to trap you.

“It could sound like a philosophy class”,  “but some time, it is good to follow those old philosophies. As a first philosophy, never lie about your income or credit (payable bills). We are in America & not in some third world; it is easy to run through your credit report to verify them. Next, don’t expect an unreasonable offer price from the dealer; we should understand that the dealers are into business and not into charity. Similarly don’t go for ultra low cost APR, when it comes to low rebate, the maximum chance is you will get either of it and not the both. Understand their cost too!

Don’t give wrong facts about your car’s cost while trade-in for two reasons; one you wouldn’t prefer if the same thing happens to you, and the second is you can’t expect the same from the dealer too. Credit history is on which easily the dealer can verify, so it is not good to waste the dealer’s or the salesperson’s time when you have a recent bankruptcy. It is not easy to avail an auto loan approval if you got a recent bankruptcy. So, it’s better to be honest. One more point, never complaint about the car after purchasing the loan. Always do your research (completely) before deciding the car you want to buy.

Some times philosophies can take us from confusion and helps people who are in need. This would be good for car buyers and to the people who think of purchasing a car in few days from now.

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Understanding the Car Dealers – DOC Fees

Recently there was an article about the doc fees which dealers get while they sell a car to the customer. There have been many comments about this fees which the dealers receive. Though the fees could be as low as $50 the dealers hardly accepts to budge and will refuse to reduce that amount in the purchase.

A Documentation fee is normally the cost that a dealer will put on the customer for all the paper work they do like title, registration and other process which some may inform as processing fee too. The cost of the doc fee changes with dealer to dealer depending upon the state of operation, profit expectation, the bureaucrats who work in the registration office and the customer even.

“Once there was a case when a customer defended himself saying that he has enquired before about the doc & processing fee previously, but now another dealer was telling there a difference of around $50. But the thing what he did is he asked in Alaska and California. Obviously there will be a difference, isn’t it? So it depends on the taxation policy of the state or the state’s standard fees if incase it has such.

Some dealers use this as an extra profit even. So better check your local state law and is good to double check the final paper work for any seemingly “questionable” fee or an additional fee.

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