Important Tips For Securing Car Loans Even If You Have A Bad Credit History

For anyone looking forward to getting the car of their dreams, seeking a car loan is an indispensable option. However, the going normally gets tough once your loan request is turned down due to a bad credit score. The following detailed write-up will be of great benefit to you if you’re looking for bad credit car loans.

Features of Car loans For People with Bad Credit

Interest Rates

Compared to ordinary car loans, these loans normally attract higher interest rates. Different lenders have different interest rates. It is hence very important for you to ensure that you shop around for the best deals in town. Try as much as possible not to borrow yourself into yet another debt. Other factors that affect the interest rates include the economic cycles and the number of players in the lending market.

Down Payment

Normally, you may be required to make a huge down payment before accessing these loans. Again as for this one you need to shop around for the smallest amount of down payment available within your locality. A big down payment might weaken your financial muscle thus making it a bit hard to furnish the new loan on time.

Repayment Period

Generally, these types of loans allow for a repayment period of up to 48 instalments. Though this duration is relatively shorter than for the ordinary loans, you can still learn to operate within the provided limits. As your credit score and your relationship with the lender improve, you can always negotiate for a longer repayment period.

Monthly Payments

The amount of monthly expenses is normally determined by the aforementioned factors. Basically, a high rate of interest rate and a short duration of repayment lead to higher monthly repayment amounts. However, you can get reprieve by creating a good relationship with your

Important Tips for securing car Loans with Bad Credit

If you’re looking forward towards owning your dream car through this form of financing, the following tips will indeed take you a long way.


One effective tip that works for people with bad credit ratings is looking for friends and family members with a good credit rating to co-sign for them. A co-signor acts as a guarantor thus raising your overall credit score. You’ll therefore be in a position to get a better deal.

Secured Loan

Another way to secure a good loan deal is by pledging your assets as collateral for the loan. It is important to remember that the asset(s) pledged can be repossessed by the lender in event of default on your part.

What other alternatives are available?

Apart from securing your car through the financial options discussed in this article, you can also explore the leasing option. This is a good alternative especially if you have a regular source of income but with a poor credit score. Through leasing, you’ll only be required to pay a monthly leasing fee for the car.

In summary, it is clear that there several alternatives that you can take if you want to get a car with a poor credit score. One of the most viable options worth considering for this financial venture is taking car loans for bad credit as discussed in this article.

How to Qualify for a Loan on an Investment Wealth

Many banks accept that investor loans are riskier than owner-occupied loans and create it harder for investors to qualify. There are many things an investor can try to get a better option at being able to eligible for an investor loan. There have many options to get a hard money loan but if an investor needs investing strategy including information on rental properties then check out the complete guide of investment in long-term rental properties.

With the new lending rules, it is harder for investors to grab a loan opportunity on rental properties. If an investor wants to get a loan on more than three or more than ten it really becomes difficult. One the biggest problems investors run into is they need to qualify for two houses if they have a loan on their private residence. People should not buy the most expensive house they can qualify for because of this. You need to have a low debt to income ration to grab the eligibility for a new loan whether it is as an owner occupant or investor. If you reach the maximum of your qualification on your personal home, then surely it will be very hard to qualify for a debt on an investment property, because it raises your loan to the income ratio.

Almost every bank require a high credit score for investors looking to buy rental properties. After you get four mortgages conventional lenders will ask a very good credit score from investors. On the other hand, some owner occupied loans may accept a low credit score.

The rules about rental income depend on the bank and type of loan. Many lenders have less strict guidelines than a bank.Basically, lenders count more than the guidelines allow for as far a rental income. You may have to provide leases to show the rental income or may tax returns to show the income coming in. If you do not provide the tax return details, then they do not count the full fund of the rental income.

Many lenders do not care about the repairs a home will need when you want to buy the home. They only want to make sure it valued for the price you are buying it for. Many lenders are very flexible for any repairs needed. Conventional loan lenders are very strict with owner occupied and investor loans. A maximum number of conventional banks will want to be in a livable situation even an investor is buying it.

It is surely harder to get a loan as an investor than it is as an owner-occupied. Planning is very important for an investor, especially when they own a large personal mortgage. If you want to max out your personal qualification then it will be very difficult to qualify for an investor asset.

Top Ways To Manage Your Loans

Trust me when I say this – loans may seem blessings to you, but they are curses in disguise! Just when you enter the circle of a loan, there are thousands of things that keep irritating you at the back of your mind. Unless you have opted for an inheritance loan company and have taken loan in advance (against the inheritance you are going to be blessed with, in a few days), managing the debts can be quite difficult.

But worry not – here are some of the tips I would like to give you to balance your life, even with all those debts on your head:

Don’t panic: The first, and the most important thing, that you need to remember is not to be panicked at all. No matter what happens or how bad the times turn, remember that things can be better, if you plan them in proper ways. Keep a backup plan ready for every single step you take, with respect to the debts you have on your shoulders.

Don’t spend all the money at once: Just because you are going to get the inheritance in a few days does not mean you can spend all the debt you have taken. First of all, you haven’t received the inheritance yet and the money that you have taken in advance is nothing more than a debt at the moment. Therefore, be careful before spending all the money that you have borrowed.

Save first to have sufficient funds to return the money: Instead of spending first, save first to have sufficient money to return in future. Your savings should be so strong that you can repay the debts, even if you don’t get the inherited amount in your hands.

Make sure you WOULD get the inheritance: There are certain ways in which you can find out about the truth behind the will of your deceased parents. Make sure you are going to get the inheritance, before you spend the money completely. What if you don’t get it and you have to return the debt on your own?

Remember to spend wisely: Instead of spending money without thinking, make a plan. Find out the reason behind why you took the loan. Spend money according to the plan, instead of spending it without a thought.

Think about the things you would do, if you don’t bang the inherited amount or property: You need to make sure that you have a proper plan ready in your head, to repay the debts, if you don’t bang the inheritance that you are expecting in a few weeks.

Tips On How To Have Your Bank Loan Approved

There are many reasons why people want to take out a bank loan. For one, they may need some money to do some repairs in their home or have their car fixed. A bank loan can also help greatly in paying off some unpaid student loan. Additionally, it can also be used to pay for your child’s tuition or school fees and for any medical emergency or hospitalization bills you or a family member may have acquired.

Whatever reason you may have for applying for a bank loan, if it is crucial that you get one, there are some tips you can follow or employ to make sure that your application does not get rejected. Below are some useful tips on how to have your bank loan approved:

Be ready to share to all of your true financial information. Don’t try to hide any financial information from your bank; more often than not, they’ll get all the details anyway. A bank will always verify all information you have provided in your application sheet. During the application process, the bank will call you to verify all your personal data. The more personal and financial details you provide, the easier it will be for your loan officer to get your loan approved.

Maintain a savings account. Whether you need the loan for a particular purpose or for emergency reasons, setting up a savings account is always a good start. Make sure that you contribute regularly into it. When you do this, you are proving that you are capable of managing your loan repayments.

Set your sights on a realistic loan principal. Apply for a loan amount that is realistic based on your monthly cash flow. Your chosen commercial bank will check your current standing from all the documents you are going to send them anyway so it wouldn’t make sense for you to apply for a large amount that is incongruent to your present financial status. The bank can grant you the loan but possibly lower than what you wanted if they think you cannot repay it. The bank can even decline your application if you are aiming for a big loan amount.

Maintain a good credit history. Lastly, your credit history will be the solid proof of your repayment behavior and practices. A good credit history will give you nothing but benefits even if you think you are not getting a loan now or you think you would not require one in the future. Unpaid loans, bounced checks, credit card payment delinquency, and dishonest loan purpose, among others, are red flags that could ruin your application process.

Why Spring Is Known As the Mortgage Season

Are you one of the many people who have heard the expression – “spring is the mortgage season”? Have you often asked yourself why?

Traditionally, the period between September and November is the busiest time of the year for real estate agents and finance/mortgage brokers. As this is the time of the year when many people are:

1. Looking at selling and buying real estate; and

2. Looking to take out home loans.

Also, spring, is the time of the year when homes look their best and people are happier to attend open inspections and auctions.

Start Planning

Before you start looking around for your dream home, you should start planning by undertaking the following steps:

Step 1- Presentation

Because first impressions always count to the buyer, it is important to make sure your property looks its best from the moment it goes onto the market for sale. This means ensuring that both the interior and exterior are as presentable and attractive as you can make them.

Step 2 – Perform a Financial Health Check

Just as you have a regular medical check done on your health, you should also consider having a health check done on your finances. Because, performing a financial health check will tell you if your finances:

>> Need attention;

>> Are under control; or

>> Could be better.

The financial health check will help you take control of your finances. So, why not start straight away by using a Budget Planner Calculator to work out what you are spending your money on.

Step 3 – Work out How Much You Can Borrow

Do your sums by using a Borrowing Power Calculator to work out:

>> How much can you borrow? and

>> What repayment amount can you afford?

Step 4 – Get your Home Loan Pre-Approved

By getting your home loan pre-approved, you will have the peace of mind knowing that your loan has already been assessed by a qualified finance/mortgage broker. Also, you will have the upper hand when negotiating the purchase of the property with the seller (vendor) and/or real estate agent.

Step 5 – Choosing a Suitable Home Loan

Once you have sorted out your budget, it is time to start choosing a home loan. When choosing a home loan, it is important to work out:

>> The features you need from your loan; and

>> The cost of the loan in terms of fees.

To help you in choosing your home loan, you should ask different lenders/credit providers for a copy of their “Key Facts” sheet. It will give you the information you need and it will also give you a comparison rate of the total costs of a home loan against other home loans.

Note: Lenders/credit providers must give you a Key Facts sheet for a home loan, if you ask for one (but not for interest only loans or line of credit loans).

Step 6 – Choosing a Suitable Licensed Real Estate Agent

You should consider appointing a suitable licensed real estate agent who:

>> Will assist you when you are selling your home;

>> Will assist you with your property search when you are buying real estate;

>> Has a good knowledge of the demographics of your local area;

>> Has a good knowledge of comparable sales in your local area or the area you are looking at;

>> Will alert you to new listings before they reach the media; and

>> Will be able to offer additional advice.

Step 7 – Documentation

At a minimum, you will be required to produce documents such as pay slips, which can provide evidence of your income.

Selling your current home and buying a new one can be an overwhelming task for many. But, you can ensure stress-free and happy home buying process by employing the services of a qualified finance/mortgage broker. He/she will provide expert assistance every step of the way and ensure that you obtain the best home loan deal.

How Do You Qualify for a Hard Money Loan?

If you want to purchase a real estate property and if you do not have an adequate amount of money on your hand for this purpose, it is vital that you should try to obtain a hard money loan as quickly as possible. It is vital to remember that you need to prepare yourself thoroughly before you send your loan application to your potential lender in the best possible way. This article will highlight on a few important steps that you should follow in order to get this type of fund without any sort of difficulty.

The first step that you should follow is to find out the right type of property that can be used as collateral without any sort of delay. In lending agreement, collateral is the pledge of a borrower on a particular property to any lender in order to secure any sort of repayment of loan successfully. If a borrower fails to repay this kind of fund due to bankruptcy or for any other reason, then there is a possibility that the borrower needs to surrender this property that is used as collateral. If it is done, then there is possibility that lender becomes the owner of property by all possible means.

The second step that you should follow is to develop an exit policy as quickly as possible. It is vital that you should have prepared a proper loan repayment plan and it is important that you should also communicate it to your lender successfully.

Your next step is to prepare all the relevant documents without any kind of delay. Although this type of fund is often provided on the basis of collateral there is possibility that your lender may try to gather your personal details such as your total income, information about your assets and so on. It is vital that you should be able to provide these details to your lender as quickly as possible.

The next step that you should follow is to do a bit of research in the best possible way so that you should be able to identify the property that you have identified for investment and that you should be able to produce relevant pictures of the property in the best possible way.

It is advisable that you should communicate with a reliable contractor without any kind of delay. If you are able to bring estimation from this type of contractor along with details of the total cost and the type of renovation required for your property, it is vital that you will be able to get approval of the loan without any sort of difficulty.

Those who want to offer a hard money loan to the borrowers need to be assured that the borrowers do not face financial difficulty by any means. All they do is to find out the total amount of cash that the borrowers possess and to find out the total years of experience that they have in the relevant industry. It is vital that you should be able to highlight these factors as much as you can and that you should be able to gain the trust of your lender as much as you can.

Loans Against Inheritance – Is It A Good Idea?

When you are entitled to some inheritance that is in probate and you are in need of funds, you can opt for a loan against your inheritance provided by inheritance cash programs. The Will by the decedent is validated by a process called as probate. This process also ensures that the assets are distributed correctly.

In reality these advances that you can request for against your inheritance is not a loan but just an advance which will be repaid on settlement of probate. The process is long and tedious that can take days or even months to settle. A portion of their assets can be sold by the heirs before the inheritance is distributed. This process will fetch them money.

If individuals or heirs have some debts or financial commitments they can use the cash advance to pay it off. These funds can be used for personal uses such as taking a vacation, investments, tuition expenses or college expenses.

One must be aware that there are fees involved in obtaining a cash advance against inheritance. There are rules that state that the loan cannot be more than 30% of the total inheritance value. There is a lot of risk involved in providing cash advance against inheritance. The funding companies will need to wait till the settlement of probate and even then the estate may have insufficient funds when settled. These are chances that the company will have to assume and take into consideration when approving a cash advance. In circumstances where the estate is unable to repay the advance, the company cannot initiate any legal proceedings if and only if the recipient has been truthful in furnishing information while applying. This is why the funding companies requests for every bit of information regarding the beneficiary as well as the estate.

There are a few documents that need to be presented when applying for cash advance. A copy of the Will and the death certificate of the decedent are just a couple of many other documents that may be required. You would also be required to provide the contact for the estate administrator. Your credit reports will be verified to ensure that you are free of liens and to see if you owe taxes or child support. If any of these conditions exist your application may be rejected.

Generally these funding companies provide cash advances only if the heir is entitled to $15000 or more. The inheritance rights need to be assigned to the company and the process takes anywhere between 5 – 10 business days.

The regular cash lending companies do not get involved with cash advance against inheritance as it is too much of a risk. You need to seek the help of companies specialized in inheritance cash advance.

Types of Loans!

Whether you are looking for a new home or you need to do something that is considerable, it doesn’t matter. There will be some important times when you will essentially have to acquire the services of a loan. You will have to choose from the different types of loans that are available to you. These loans are extremely popular and each one of these is useful. Thus you will have to make sure that you choose the type of loan that is the most appropriate for you.

The conventional loans

Conventional loans are also called as the mortgage credits. These are given by the mortgage lending institutions and are not backed by any kind of agency of the government. The conventional credits can also be either non-conforming or conforming.

The conforming loans

The conforming credits can conform to all the guidelines that are set by Freddie Mac and Fannie Mae. The main guideline is the credit amount that is at its maximum. This particular amount can also vary depending on the location of your home. Various other qualification guidelines are also concerned with the debt to income ratio of the borrower.

The non-conforming loans

The non-conforming loans do not actually conform to all the qualifications and also guidelines that are set by Freddie Mac corporations and Fannie Mae. In case you require a very large credit than that of a conforming loan, you will have to look at the loans that are non-conforming.

A secured loan

With the help of a collateral loan or a secured loan, you will be able to leverage your personal property in order to obtain your loan. If you default under any circumstances, your property will automatically be transferred to the lender. The loan amount and the interest rate can also vary depending on the property’s value. A higher property value can get you a very large amount of loan.

Unsecured loans

Unsecured loans are not generally backed by any collateral. Thus the size of the loan and the interest rate is also determined by your income and credit history. The unsecured loans can also be called as signature loans or personal loans. If you are having a good income, the solid payback plan or sterling credit, these can be very good options.

Differences Between a Home Loan and a Land Loan

Not many know that a bank offers home loans for either apartments or for purchase of land and building a house in it. But many of us have the habit of investing in land since it appreciates significantly with time. It is the Indian way to invest money more in Land and Gold than in other investment venues! So, how does one get a loan for buying just a plot of land as an investment? Land loans are the answer.

In general most of the terms and condition of the loan and the repayment modes are very much similar to that of a home loan but there does exist, a few minuscule differences which could be left out in the fine print.

Home loans can be opted only when the purchase is for a house that has been constructed, or is under construction or is guaranteed to be constructed in the near future. The third condition is the tricky one where banks offer a home loan that requires the person who gets the loan to start construction of a house in the land bought with the loan amount within a particular period of time.

Nationalized banks like the SBI offer home loans for owners who purchase a land and assure that the land will be used to construct a house in the next 2 years of purchase. Private corporate giants of the banking sector like ICICI prefer the owners to complete the construction of a house in the land bought within two years! It is up to the buyer to decide which a financially feasible option is and decide on it.

If you plan to buy the land only as an investment, then the land loan comes into play. General terms and conditions, documentation required and repayment options are the same but only that following points that are outlined have to be considered:

Type of Land

A land loan can be procured only on a residential plot. Commercially assigned layouts and agricultural lands cannot be bought using a land loan. The plot chosen should also be within corporation or municipal limits – meaning rural plots could be out of question!
LTV Value is lower

The Loan to Value is the total sum that would be covered by a loan in a purchase of property. Home loans cover 80% or more of the total cost of the property without the registration and the documentation costs taken into account. On the other hand, land loans will cover on less than 70% of the total land cost which equates to more than 30% of the cost incurred by the buyer initially.

Maximum Loan Cap

The maximum loan amount sanctioned for home loans are 60 times the monthly salary of an individual provided he has no liabilities. On a land loan the maximum amount is capped to a certain amount by banks no matter how much your salary is. This depends on the bank and could turn out to be the deal breaker for many!

A majority of the process remains the same but these limitations make buying a land for investment a slightly cumbersome approach if a loan is opted. Try to shop around different banks and get the best deal. A good history of loan repayment greatly helps your cause too!

Home Loan Checklist – Important for Choosing a Home Loan That Suits Your Needs

When you are looking around to choose a home loan, it can be helpful for you to use a “Home Loan Checklist”. It will help you make a decision that will suit your needs and circumstances. You can use the checklist for any purpose, including:

>> Buying your first home;

>> Refinancing your existing mortgage;

>> Consolidating your debts

>> Cash out/equity release;

>> Buying an investment property;

>> Constructing your new home; or

>> Upgrading or renovating your existing home.

You can also use the checklist to avoid applying for loans that don’t suit your particular needs or circumstances.

Ask your Lender/Credit Provider for a copy of their Key Facts Sheet

While doing your research, the best way to compare home loans is to ask different lenders/credit providers for a copy of their “Key Facts” sheet because it will tell you:

>> The total amount to be paid back over the life of loan;

>> The repayment amounts and payment options;

>> The fees and charges payable; and

>> The comparison rate which will help you check the total cost of a home loan against other home loans.

What is Included in the Home Loan Checklist?

Here is a list of things you should look out for before you sign up and which are included in the Home Loan Checklist.


This is where you need to know details of the interest rate percentage (%) charged by lenders/credit providers for any of the following home loan options, including the comparison rate:

Variable Interest Rate Home Loan

With this option, the interest rate increases or decreases in accordance with the rates in the marketplace.

Fixed Interest Rate Home Loan

With this option, you may elect to fix (lock-in) an interest rate typically for 1 to 5 years.

Split Loan (Combined Variable/Fixed Interest Rate) Home Loan

This option allows you greater flexibility because you may elect to divide your loan into a number of splits. For example:

>> You can arrange for one split loan as a variable interest rate; and

>> You can arrange for another split as a fixed interest rate.

Introductory (Honeymoon) Interest Rate Home Loan

At the start of a new loan, you may be offered an interest rate for an introductory or honeymoon period which is usually at a lower rate. However, at the end of the honeymoon period, the loan will eventually revert back to a standard variable rate.

Comparison Rate

You need to check the Key Facts sheet for comparison rates. As the comparison rates will help you to easily compare the total cost of loan against other loans, including:

>> Interest rates;

>> Application fees (sometimes also called the establishment, set up or upfront fees); and

>> Ongoing fees.


This is where you need to know what repayment options are available to you including:

Additional Repayments

You need to know if you can make additional repayments which are in addition to your normal minimum monthly repayments.

Redraw Facility

You need to check the Key Facts sheet to find out if you can make extra lump sum repayments over and above your contracted loan repayments. You will also have to check whether you can then redraw (withdraw) these extra funds from your loan when you want them. You may find that in some cases, lenders/credit providers may not release your redraw funds when you want them.

Paying Weekly or Fortnightly

You need to know if you can select weekly or fortnightly repayments as it will enable you to repay (pay off) your loan sooner.


To help you work out the true cost of a home loan, you need to know the details of any fees and charges that may be charged including:

Application Fee

It is also called establishment, setup or upfront fees. You need to know details of the application fee charged by lenders/credit providers which covers or partially covers their costs of setting up or establishing loan.

Exit Fees

It will help you to know if your current lender/credit provider will charge an exit fee for the early pay out of your loan, and if so, how much you will be charged.

Break Costs

It will help you know if your lender/credit provider will charge a break fee for ending a fixed rate contract before the fixed rate expires, and if so, how much you will be charged.

Ongoing Fees

You need to know details of any ongoing account keeping fees that the lenders/credit providers will charge against your loan (i.e. these are usually charged monthly).

Additional Charges

You need to know if there are any additional charges to be made against loan, and if so, you need to know whether you can pay these fees upfront or have the fees added to your loan.

Finding a suitable home loan that suits your needs is a major financial decision. So, don’t rush into anything too quickly. Always remember that while you are shopping around for a suitable home loan, do your research and review the Key Facts sheet closely before you sign up for loan.

Seek Expert and Professional Advice

So, now that you have a basic understanding of why a home loan checklist is important, you should also consider seeking help from a professionally qualified finance broker. He/she will help you to create a personalized home loan checklist. He/she will save you lots of valuable time running around on your own and assist you in determining which potential lender/credit provider best meets your needs and circumstances.