Be Prepared for the Problems in Used Car Financing With Solutions Before You Start

Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.

Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.

To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.

This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.

Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.

“For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”

Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .

The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:

Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.

SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.

What Stands Behind Capital One Credit Cards and Savings Products?

In the times since the global financial crisis, it has increasingly become a concern as to what the backing of the financial institution that issues your credit card or holds your saving account is. There are a number of laws which regulate the financial system and try to ensure that customers can rely on banks to honour their obligations which can be a particular concern in relation to savings products. Title 12 of the United States Code in part 325 specifies a number of ‘capital adequacy requirements’ in relation to all banks. The aim of these requirements is to force banks to adequately provision of a crisis and ensure that they will remain solvent even if there is a large crisis. Banks must report periodically on their arrangements to show regulators that they are meeting the capital adequacy requirements.

Capital One at the moment is, when measured by asset pool, the 8th largest bank in the United States with balance sheet assets of approximately USD$286bn in 2012. Amongst other distinctions, the company is also one of the largest customers of the United States postal service. Its head office is in Fairfax County Virginia and the current chairman, CEO and President of the company is Richard Fairbank. It is one of the fastest growing banks in American history having been founded in 1988 by the current CEO. Like many banks in the American financial system, Capital One was the recipient of a bail out during the sub prime mortgage crisis of 2007 when it received $3.56bn from the United States Government in exchange for 3,555,199 shares in the company. By the end of 2009, the company had managed to buy the government out of the business.

As well as being involved in credit cards, Capital One has an Auto Finance Division which is a substantial part of the company. An entity known as Capital One 360 is also now in existence having formerly been known as ING Direct on the idea that a bank could perform retail services entirely on the basis of an online model. This division of the company has no branches and only maintains a physical presence in the form of call centres and online processing maintenance facilities. The online bank model seems to achieved some success given that the lower overheads from rent and staff result in lower costs to consumers and therefore a better outcome.

One of the notable characteristic of Capital One is that it appears to have retained an ability to ride out the periodic financial storms which emerge in the world of consumer credit. It has grown consistently throughout good and bad times in consumer finance and continues to grow based on the analysis of its most recent financial data. This history of growth and the ability to ride out financial storms appears to bode well for the credit and savings products of Capital One.

Top Budget and Personal Finance Apps

Let’s face it, there are some extreme couponers, thrifters, and smart consumers out there always trying to save money and get the best deals. With budgets that much more tight in these tough economic times, it’s okay to get a little help from none other than our smartphone apps. I mean, why not, right? We have our smartphones with us nearly every minute of the day, so this kind of smart budgeting is accessible to anyone. Keep track of your monthly spending, set limits on each category of goodies you purchase, save money, and look up investment ideas and accounts has never been easier. Read on to see how you can always control and be on top of your personal finances. We’ll reveal the top budgeting and smart spending apps for you thrifty shoppers out there!

For one, there are so many budget tracking apps out there, but a really useful one would come with a budget tracker tool that will allow you to view your yearly, monthly, weekly, and daily purchases. You can further categorize them and see visually and through charts and notifications how much you spend exactly in each category. There is also a rollover option for you to transfer leftover funds from previous months or weeks to roll over and won’t mess up your budgeting. Of course, you can always opt out of this option and have a set number of expenses every month.

Another useful app gives you control to add new transactions over your allotted sum of money and spending finances. Pre-setting an overall budget for the entire month, and thereby deducing every time you make a purchase gives you instant updates on the money you have and the money you are losing. These transactions are totally customizable. Currency converters may also be useful if you plan on spending your money in a foreign country. We all get carried away when we travel, but this app makes it easy to stay focused on the budget, even when you’re not familiar with the currency exchange.

Another great app gives you total control over importing your finances onto your phone from an external memory device – your laptop, desktop, or anything with wireless. You can also set a password to manage your personal finances with utmost privacy. Charts and graphs give you short and easy to read summaries of your account activity. You can share these things in the form of PDF, Excel spreadsheet, or import to Google Documents in order to share with your family, business collegiate, execs, or co-workers.

If you are comfortable, some apps may even connect directly to your bank account and give you automatic categorized notifications of your spending. It will constantly update your spending profile and read instant in depth overviews. Any suspicious activity will be announced. Budget tracking is that easy!

In fact, budget tracking has made it easier to keep track of your credit scores, and credit score reports. Why not try to improve your credit score while you are managing your personal finances? If you use the right app, your personal finances will be in a much better place.

The Key Advantages of Chase Platinum Credit Card

The JP Morgan Chase and company is one of the largest financial providers for personal and business accounts. Chase understands the busy life of people and therefore offers them a variety of options to have easy access to their accounts without even visiting the banks.

Chase Manhattan has created the Platinum credit cards, keeping in mind the elite class of cardholders. If you are interested in a good rewards program and also a good interest rate, then the Chase platinum Credit Card will be your option. The card has 0 percent introductory annual percentage rate for the first twelve months; but the duration for which the introductory rate continues depends basically on your credit history and purchases or balance transfers. Nevertheless, after the expiry of the introductory period, the annual percentage rate will increases to 14.24 per cent.

The reload fee, application fee and the participation fee are non applicable. Although the card may seem the right choice for you, you should double-check the other aspects. The variable interest rates need careful consideration.

The method of computing balances is also very important. Unlike most cards following the “Average Daily Balance” method, Chase Platinum Credit Card uses the “Two Cycles Average Daily Balance” method for determining the finance charges. This system is particularly unsuitable for you if you carry a balance, even if it is an occasional large revolving balance.

The Benefits

There is the opportunity of earning one point for every dollar and in this way, you can earn up to 50000 points every year. The points remain valid for five years. You can cash these points and use them for buying merchandise and/or gift cards or for meeting travel expenses. The card also offers an interest free grace period when you can pay your bill fully for each month.

The other benefits include free travel services, auto rental insurance, $500000 worldwide Travel accident Insurance and many more benefits. The various platinum benefits offered by the credit card are inclusive of such offers as online account access or various travel services. The only rewards for these types of cards are the points, but there are no rebates achievable as such.

The card also provides other services like emergency card and cash replacement, lost and stolen card reporting, a financial statement at the end of the year and other similar facilities to the cardholder.

The Chase platinum Credit Card does not hold anyone responsible for unauthorized transactions with his/her card. These apart, there are other emergency assistance services, travel accident insurance, auto rental insurance and many security/protection facilities like purchase protection, extended warranties, etc.

You must remember that there are certain restrictions and limitations that are applied to it.

Why Does My Auto Loan Hate Me? I Thought We Were Friends!

Most of us fall in love with a car at a dealership and that’s the end of the story. Hey, where do I sign? Even if we do a great job of chipping away at the sticker price and feel pretty darn good about ourselves, we often get burned on the financing end of things. This is especially the case for people trying to score an auto loan with some bad marks on their credit report. Many times, these people are so surprised to hear that their auto loan has been approved that they sign on the dotted line before the dealer has a chance to change his mind! Only later do they realize just how poor they will be for the next 5 years because of the interest rate on that auto loan.

What are my financing options?

See, now you’re thinking! Impatience will cost you in the auto loan game – every single time. Potential auto loan sources include: a traditional bank, a credit union, financing through the dealership, and the newest darling on the scene – online auto loans.

OK, so what is the best option?

Well now, this all depends. How does your credit history look? If you have a mortgage and checking account with a traditional bank, then they will probably give you a great rate on your auto loan. The dealership will often find an auto loan for people with a poor credit history – but the cost of driving that car off the lot could eventually lead to even worse credit, when they have the car repossessed because they can’t afford the payments. The best place to shop around for the best rates on an auto loan is definitely online.

Uggh! I hate that stupid Internet! It takes me forever to find what I am looking for!

Oh come now – how long can it take to type “auto loan” into Google? If you don’t care about possibly paying thousands of dollars more in interest by letting the dealership “help you out” with financing, then by all means go that route. But, for people that want the best rate possible on their auto loan, the Internet is the place to start the search.

But how do I know that I can trust those Internet people with my financial info?

Very good point – and that is definitely something to consider. To begin with, many traditional banks offer online auto loan applications as a service to their customers, which also saves the bank processing costs. You can apply for Chase Manhattan auto loans online or down at one of their branches. In many cases you will find that banks offer these online loans at a smaller APR than you can get by actually going down to a branch. Chase Manhattan auto loans is one example of this, but many financial institutions offer their online customers a better rate.

Now why would they do that?

Not too trusting, are you? Hey, that is a great trait to have when shopping for auto loans – don’t forget it! What you are looking for is the catch, and here it is: In most cases, you will get a lower rate on your online auto loan because you will be required to sign up for automatic electronic payments. Plus, seeing a loan officer at the branch takes up the time of employees, and uses other resources that aren’t needed when you submit your application online. But remember, not all institutions offer lower rates like Chase Manhattan auto loans. And even Chase requires you to sign up for automated payments in order to get a break on the rate.

And what else should I know?

At the very least, shop around for rates on auto loans using the Internet before talking with the traditional institutions, such as bank branches or dealerships. Just knowing what kind of interest rate you can get on an auto loan can help you when you are down at the dealership drooling over that hot new car! Remember, knowledge is power – so don’t just walk into a dealership without knowing what kind of interest rate you can expect for an auto loan.