Is car loan the right stuff for you?
January 31st, 2010 by carla_guillermoIn comparison with home loans, car loans run much shorter. But before you get too excited, read on to help you decide if it is right for you. If you need no mileage limits because you put a lot of miles on your car, then loan is the best one for you. In contrast with lease, you will have no restrictions on the miles that you need to cover per year. If you think that wear-and-tear charge would be a big deal in maintaining a spotless car, then loan is the best for you.
Because loan offers much more credit flexibility than leases and you figured out that your credit is improving but not perfect, then go for a loan. If your car ownership definition covers a lot of years and not just for the moment, loan would give you a title and drive as long as you want. Lastly, if you are into modifying your car’s physical appearance like paint brushing or having a spoiler, definitely have a loan.
Basics: Lease
January 30th, 2010 by carla_guillermoBy all means, lease is similar to rent but with a longer term. In the end of a car lease for example, you return the leased car. Aside from the upfront payment, you will give monthly payments for using the car and you need to maintain it. On the agreement, there is a limit on miles to cover and you will pay for any additional. You will also need to pay for any damages you may caused the car or repair it.
The advantage of having a car lease will be paying a lower monthly payment for a great car. Before doing so, further check the benefits, mechanics and possible complications. Generally, lease payments depend on the capitalized cost of the car, the residual value and the amount the vehicle will depreciate when you use it. Some websites offer special calculators like Purchase vs. Lease Calculator that will allow you to compare the two methods.
Credit Clinic – Do you Really Need Them?
January 29th, 2010 by daphne reyes
Higher credit score and better credit report, these are a couple of promises these credit clinics will give you. Have you asked them how they will do it? Have you asked them if they have some direct connections with the credit reporting agencies that there are things that they can do that you can’t do for yourself? Do they have some kind of powers that will make the credit reporting agencies policies faster? Do they have a special number that they call that is given any special treatments?
You better think twice about getting involved with credit clinics and spending thousands of dollars. You just might put yourself in much more debt than the before the time you got them involved. Just so you know, they don’t have special access to credit reporting agencies. Everything that they do, you can do yourself and save thousands of dollars. The number they call is just the same number that you yourself can call. The documents you need to fix your credit? It doesn’t make it less if it was thru them and you can send them yourself to the same number or address that they send it to.
There are only 2 keys to fixing your credit. Monitor your credit report on a regular basis, for any inconsistencies; call the credit reporting agency directly. It will take about 30 days but that’s just the same time it will take with the credit clinics. Not unless they have an illegal contact inside who fixes things for them, they are not special. Like I said, save THOUSANDS and do it yourself. Anyway, who knows your credit history better than you do?
Understanding Your Debt to Income Ratio
January 28th, 2010 by daphne reyes
Understanding Your Debt to Income Ratio
Firstly, you need to know what debt ratio is. Look at your monthly gross income, before taxes and contributions. This is how much you make per month, not how much you take home. What you take home is net income. Debt-to-income ratio is the percentage of a consumer’s monthly gross income that goes toward paying debts.
There are two kinds of debt to income ratio:
FRONT RATIO indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (PITI includes mortgage principal and interest, mortgage insurance premium, hazard insurance premium, property taxes, and homeowners’ association dues.
BACK RATIO indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.
Debt Consolidation
January 27th, 2010 by daphne reyes
Debt consolidation can be done by taking a second mortgage or a home equity line of credit and using that money to pay off higher interest debt. This can significantly lower your interest rate, and even make your interest payments tax deductible. However, be sure you are committed to paying off debt and making payments on time before you do this, since you are putting your home at risk when you transfer unsecured credit card debt into a mortgage loan. You wouldn’t want to lose your home. Double check, re-calculate and make sure that you will be able to pay it off before taking this step.
Debt consolidation can also be done thru credit card balance transfers to take advantage of a promotional rate. Often, balance transfer offers will provide you with a low rate- between 0% and 5% for a select period of time. You can transfer balances up to the full amount of your credit line by requesting a balance transfer check or having the new creditor pay the old creditors directly. Alternatively, you can apply for a personal loan and use that to pay off higher interest loans.
Credit Card Fees You Have To Watch Out For
January 26th, 2010 by daphne reyes
Universal Default – Your credit card issuer can penalize you for any late payment you make even with other cards. Penalty rate may be as high as 29 percent or higher.
Low Minimum Payments – You shouldn’t be at all glad for low minimum payments. This may cause your debt to grow bigger due to the lengthening the time before you get to pay it off and accumulating interest charges.
“Teaser” Rates – You may be attracted to a credit cards very low offer on interest rates. It may even be zero but many of these rates changes after six months leaving you stuck with higher paying rate.
Changeable Rates – You may want to read those fine prints that says that the credit card issuer can change your interest rate for any reason, and worse, you will only be given 15 a 15 day notice before the your interest rate goes up.
Varying Rate Levels – If you make some purchases at a promotional rate and others at the card’s regular rate, the card company often applies your payments to the lower-rate debt first, leaving you paying off the higher-rate debt. This can also occur if you take cash advances that carry a special higher rate.
So before you get a new card, you may want to go through all the terms and conditions to avoid unpleasant surprises along the way.
Repairing Your Home For Less
January 25th, 2010 by daphne reyes
We all have a long list of things we need to fix in our home. We all know that most of these doesn’t get done at all. When it’s time to sell our home, you will realize that this affects its value. Either it will cost you more to have it fixed by a professional or you get to sell it for a much smaller price. Experts say that most of the repairs that needs to be done, could have been avoided all in all for a smaller cost.
“Our experts in the heating ventilation air conditioning industry tell us that 60 percent of all their service calls start because it’s a dirty filter issue. If you have a dirty filter, it affects the efficiency of your furnace,” says Reed. She says that it’s a simple and easy repair that improves the air quality and saves you money.
“If you’ve got a leaky faucet or running toilet, that’s going to cost you,” says Reed. “If you don’t get it fixed you’re going to be paying more and more. It can also lead to mold damage. It can lead to a loss of your cabinetry—the flooring in your cabinetry can be rotted away and that can affect your floor underneath and the walls. So you can have a big issue if it’s not fixed soon,” says Reed.
Basics: Where to get a loan
January 24th, 2010 by carla_guillermo
If you figured out that you really need a loan but uncertain on where to get one, this article would be a great help. Let me enumerate to you the options on where to get a loan. First on the list is online. Yes, you read it right. Loan is now available through the internet with the comfort of your home. No need to ride a bus or make phone calls, just search finance companies like Lending Tree and AutoTrader.com online with their respective offers and make a sound decision.
Next would be the typical banks and credit unions which are very popular nowadays especially if you already have an account. Don’t limit your options on your usual banks when looking for the best offer. Last but not the least is dealerships where you could have access to different lenders. This option works best for auto loans where lenders give incentives for financing. Whatever you choose, just make sure that you read all the details and agreements before you commit.
Basics: Loan
January 23rd, 2010 by carla_guillermoFirst and foremost, the word loan is part of the jargon when it comes to financial concerns. But if you are just learning the basics, loan is simply defined as a way to get what you want when you don’t have what it takes. Loan revolves on money, agreement, payment terms and ownership.
For an example, if you want a car and you don’t have enough money, you can apply for an auto loan to have one. But it is not that simple, you have to agree with the terms that come with it. You and the lender would talk about the interests, when and how to pay the money at regular intervals for a period of time. The good thing with loan is that, after everything was settled you can now drive your own car.
But you might ask on how much does a loan would cost. You need good mathematics or calculator with this one. First, know your monthly payment and the number of payments you need to complete the agreement. Next is that you multiply the two numbers to get the cost. If you got approved for a loan of $20,000 for 60 months but agreed to give $356 every month, the total cost after that period would be $21,360. The excess $1,360 would just be allocated for the interest. These would be in simple terms because if the case would be a little bit complicated with trading, cash down, etc. you need to do specific calculations.
Investment Properties – What To Look For
January 22nd, 2010 by daphne reyes
It is crucial that you make sure that you do your research before investing your money. Make sure that you will be able to earn back what you spent, and more.
1. Location – Look for rental investments in areas convenient to major employers, schools, shopping and public facilities, and transportation.
2. Price – If you hope to charge more than the cost of the monthly mortgage, insurance and taxes on the home, you should be careful to invest no more per month than the local rental market can bear. If your goal for rental income to “break even” or perhaps less as the property increases in resell value, price becomes somewhat less important.
3. Future Resale Value – Properties in growth areas can rapidly increase in value, turning your rental property into a prime resale opportunity. Investing in low growth areas can provide a steady stream of renters, without a major growth in equity.
4. Neighboring homes – One home on the block that is poorly cared for can drive down potential rental income.
5. Solid Construction – Even the best tenant will be more likely to put wear and tear on a home than a home owner. Try to find low-maintenance properties that will stand up to the wear and tear of renting.