Online Financial Tips

Archive for July, 2011

Don’t let bad credit stop you from taking out an auto loan. Many lending companies can get your car loan approved even if you have no credit, bad credit or a bankruptcy. Ads for bad credit auto loans practically promise that you can buy a car no matter what kind of credit you have. Most of these ads are based on the truth, but it is best to know your options and understand how the system works.

Even with poor credit you can obtain a car loan through direct financing. The process is the same as for a good credit auto loan. The only difference is that borrowers with bad credit will have to make a larger down payment and their interest rate will be higher. Borrowers may be asked for a down payment of 20% to 50%, with interest rates of 5% to 26%. In general, borrowers with bad credit can expect to pay 7% to 18% interest. Amortization for bad credit auto loans may range from 2 to 4 years as opposed to good credit debtors whose car loans may extend up to 5 or 7 years. The upside of these loans is that they can be used to rebuild your credit.

Bad credit auto loans may be abused by some dealers who inflate their car prices or interest rates for the financing. For example, a dishonest dealer may charge $6,000 for a car that normally sells for $3,000. After taking the down payment, the dealer may finance the balance at a very high interest rate, say 24 to 26%. The borrower is left to deal with an overpriced car and a loan that is unrealistically high.

Ultimately, the borrower will end up defaulting on the loan and further ruining his credit. Or, he may end up paying two or three times the price of the car if he had purchased it from a legitimate dealer. Before you decide to buy a car, be sure to research its true value to avoid paying more than you should.

In some instances purchasing a car can be to the buyer’s advantage especially if the dealer is desperate to make a sale. Concessions may be made for a lower down payment or interest rate. This is particularly true for new vehicles financed by the car manufacturer’s own funding arm. For newer cars, the amortization period can be longer too.

With the internet, it is now easier to obtain a bad credit auto loan. The internet has a dealer network system where you can click on a site advertising car financing. You will be asked for certain information and this will be passed on to a dealer who is willing to work with someone who has poor credit. You and the dealer can work out a plan allowing you to get car financing even with bad credit.

The internet also allows multiple submission of financial information to potential creditors. You will be asked to provide in depth financial information which is forwarded to a network of lending sources willing to finance your loan. You may end up with a few lenders competing to offer you the best rates and terms.

Almost anyone will be able to obtain vehicle financing although people with bad credit and little or no down payment may find it difficult to get car financing. Don’t be discouraged if you fail in your first attempts at financing. If you persevere and improve your credit, you should be able to obtain an auto loan despite having bad credit or even bankruptcy.

There are lot of banks in Singapore offering fixed deposit investment options for the investors. If you compare the fixed deposit rates and if you spot the best fixed deposit rates in Singapore, then you can earn more returns for your investments.

Some of the rates for the various fixed deposit schemes are:

Citibank, Marine Parade Road, Singapore – 0.35% DBS, Singapore – 0.45% HSBC, Tampines Branch, Singapore- 0.48% Maybank, Marine Parade Central, Singapore – 0.75% OCBC, Singapore – 0.55 %

The fixed deposit rates vary from 0.35% to 0.75% from various banks. These interest rates vary periodically. So you have to check the latest rates from the bank website or from related websites. Some banks offer high rates with some terms for investments like the minimum deposit amount should be higher or the minimum time period of investment will be higher.

Benefits of comparing the rates:

There are many benefits if you compare the rates from various banks. Some of them are:

You can spot the good rates and get good returns for your investments. If you read all the terms and conditions of investments while comparing, you could spot any hidden cost or any other terms which might not suit your investments. So instead of approaching the bank for any problem in future, you can avoid it at the early stages before investing. Some banks offer high interest rates. This would be beneficial for the investors who have a lot of money and can invest it for a long period of time. So if you compare the investment schemes offered by various banks, you might be able to spot the best investment option for your funds. By this way you can work smarter and EARN MORE MONEY.

Next Step: Start comparing the various rates.

With the internet in our midst, people are given the convenience of doing a variety of financial transactions online whether at home, in the office or even while on the go. This advanced and phenomenal technological innovation has indeed made life easier for many people including professionals, businessmen, housewives and students. However, this does not necessarily lead to the end of the existence of the brick-and-mortar banks. The standard banks will always be there as there are still consumers who opt to transact in a real bank where they feel most secure and comfortable.

The traditional banks and banks that have gone online have their respective advantages and disadvantages. It’s really up to the consumer to choose which type of banking service to use. What matters is you know your financial needs, you keep an open mind on the latest trends in the banking industry and learn about them if possible. You may be loyal to your standard bank but who knows, you may also need to use the online banking service one day for an urgent transaction when you’re pressed for time or unable to go out for health reasons.

Standard banking

Conventional banks are those that still use the paper and pen in dealing with different financial transactions. The reality today, though, is that many have gone online as well introducing internet-only products to compete with the purely online banks. While these traditional banks cater mostly to the old customers, experts say they should also keep up with the trend and cater to the younger, internet-savvy customers if they wish to attract more clients.

Security and personal touch are major considerations for people opting to use the traditional banks. Most of them would say having human contact makes them feel comfortable when banking. Some feel secure when they deposit cash via a real teller.

Online banking

Banking on the internet is very much the same as when you do transactions in a real bank. The only difference is that you’re using a computer instead of a paper or phone in accessing your account and information, making payments and reconciling statements. There’s no need to go to a local branch office as you can accomplish various financial tasks in the convenience of your home or office in a few clicks.

One major advantage of internet banking is its being cost effective. Some banks charge lesser fees if you use their online banking services. Also, since you don’t need to commute or drive to a local branch, you save on money and gas. Additionally, banks are able to offer more products and services as they don’t have the overhead expenses such as the need to pay tellers.

For busy people such as frequent travelers, professionals and businessmen, the online banking option is very ideal. As these people need to keep track of their finances and other urgent matters even while in other places or abroad, they can still gain access to their accounts via the internet.
Online banking is projected to expand by 55 percent to 72 million households by 2011, according to a report by Forrester Research. The target users are the so-called Generation Y or those born in the late 1970s.

And so, with these two options available to consumers today, it’s easy to make a choice where banking is concerned and perhaps even better if you use both.

Maybank is one of the top banks in Singapore and it offers a variety of financial products for its customers. Some of them are:

Current Account – Premier one Account Current Account – Foreign Currency Call Account Fixed Deposit – Singapore Dollar Time deposit Account Term Deposit – Singapore Dollar Choice date time deposit

There are more financial investment schemes available in Maybank. You can visit any of the nearest branches to get more details. Some of the Maybank branches in Singapore are:

Maybank – Marine Parade Central, Singapore Maybank – Siglap, East Coast Road, Singapore Maybank – Tampines Street, Singapore

There are more branches available in Singapore. You can get the exact details of the location from Maybank Website.

Fixed Deposit Rates – Singapore Dollar Term Deposit:

You can find some of the latest Singapore dollar fixed deposit interest rates for your reference (as on July, 2010). The interest rates for such investments changes more frequently. You have to check the Maybank website frequently to get the latest interest rates. You should also check the other important terms that are associated with such investments. The minimum deposit amount for such investments for 1 month would be S$ 10,000.

Duration: 6 months

Amount: S$ 1,000 to S$ 50,000

Rate: 0.5%

Duration: 12 months

Amount: S$ 1,000 to S$ 50,000

Rate: 0.75%

This scheme offers the best fixed deposit rates in Singapore. The minimum deposit amount would be S$ 1000, if you invest for 2 or more months. You can make the investment for 36 months.

Next Step: Get more details and Start Investing.

In this beautiful and wondrous digital age a question many of millions of people are asking if they should open an online savings account. The answer is absolutely. The easier it is for an individual to put money away for a rainy day the better it is for their fiscal health and well being. It is a proven scientific fact that a person is much more apt to respond to a tedious task if presented to them in a way that is convenient. Online savings is that personified to an absolute perfect “T”.

This article covers many different aspects of bad credit car loans and buying cars with bad credit in detail. Topics include the difficulty of obtaining bad credit auto financing, whether or not you actually have to have a down payment, interest rates and whether or not you really have to pay a crazy high interest rate, buying used vs new, where you can get approved and finance add-on products. This article will certainly help you along your way if you are looking to buy a new or used car and have a poor credit rating.

What is a Bad Credit Car Loan in General?

Sub-prime and Secondary finance companies offer auto financing for people that have poor credit ratings. This is commonly known as a “Bad Credit Car Loan”, as it is a car loan for someone that has bad credit. The interest rates for these types of loans can be very high or reasonable, depending on the lender that you choose to apply with. If you have a bad, fair, slow or poor credit rating (which is all the same), then this type of financing is what you will have to use to buy a car on finance. Not all lenders are created equal and some can offer better terms than others.

Is This Type of Financing Difficult to Obtain?

It depends on what type of lender that you use. Traditional banks are much more difficult to obtain a loan with if you have bad credit. Usually, regular banks and mainstream lenders require large down payments and are very restrictive as to the amount that you can get approved for.

Specialized sub-prime lenders can provide easier approvals and some companies provide their services online, which makes obtaining this type of financing much easier. Generally, if you have a credit score below 680, then a sub-prime lender is what you should deal with if you want to get approved. Credit scores as low as 480 can get approved through special finance programs and in many cases, with little to no money down. While most people become discouraged when trying to get approved with a bad credit rating, it’s much easier if you simply use the right kind of lender.

Do I Have to Have a Down Payment?

Car dealerships request down payments, whether you have good or bad credit. It’s simply another way of getting more money from you in addition to the amount that they receive from the finance company that approves your loan. Buy here, pay here dealerships always require down payments to lower the risk that they incur by offering you financing.

Obtaining a car loan with bad credit, with no down payment is a matter of using the right lender with the right combination of vehicle, finance amount and terms. Just because you have bad credit, does not indicate that you are required to have money down for a car loan. In fact, the need for a down payment can easily be eliminated with the right combination of vehicle and lender.

Do I Have to Pay a High Interest Rate?

Different lenders have very different lending requirements and guidelines that they use to approve auto loans as well as, the specific interest rate that is charged. Contrary to popular belief, your credit score is not the only variable used to determine your interest rate. The year, make and model of the vehicle that you are wanting to purchase can make a significant difference in the rate that you are charged. So do you have to pay a high interest rate? It depends on where you apply and with which company that you get approved with. You will pay a higher rate than someone that has excellent or good credit, but it doesn’t have to be all that bad.

One thing that many people aren’t aware of is that car lots can actually increase your interest rate above and beyond what the loan company actually approved you at. This happens all the time and is the main source of profit for the dealership’s finance department. It’s called back-end profit.

For example, if you get approved at a rate of say, 12%… the dealer can add to that rate from 3% to 5%, depending on the number of “add-on points” allowed by the finance company. So if you’re real interest rate is 12%, it’s common that you will be told that you’ve been approved at 15 to 17 percent. The difference that you pay in additional finance charges is profit for the dealership and paid to them by the finance company. The dealership finance manager is paid a portion of the amount, usually 25% of the additional finance charges that you pay as a result of this increase in your interest rate.

The way around paying the higher interest rates is by using a direct lender. By bypassing the dealership finance department you can get lower interest rates and also have the ability to negotiate as if paying cash.

Do I Have to Buy a Used Car?

New cars that are priced reasonably can be obtained with bad credit just as easily as used cars. The added benefit is that there frequently are manufacturers rebates that can be applied to lower the price of the car below invoice, which puts you in good standing as far as the amount requested vs the loan value of the vehicle (great way to get a no money down new car loan with bad credit).

So no, you don’t have to buy a used car just because you have bad credit. In fact, many people think that car payments are always lower on used cars. That’s not the case and the reason is simple. New cars can be financed for longer than used cars. Also, it’s easier to get a lower interest rate (much lower) on a new vehicle than on a used one.

Where Can I Get Approved Easiest?

As described above in the first section, you will need to use a sub-prime or secondary finance company to get a bad credit car loan. You should use a good lender that is legitimate and has a long track history of getting people approved, regardless of their credit history. Some are available online and can provide quick approvals in minutes. But beware of scams and hoax sites that don’t deliver.

While you can try to get approved by going directly to a car dealership, it is best if you work with a lender directly. Dealing with a direct auto loan lender will certainly get your loan approved easier and with less hassles. Just because you have credit problems, does not mean that you can’t get an auto loan direct, just like people that have good credit. You just have to use the right kind of lender as mentioned above (sub-prime or secondary).

Do I Have to Buy an Extended Warranty to Get Approved?

This question is being addressed because some car dealerships will try to pressure you into purchasing an extended car warranty. Some will state that it looks favorable to the lender or is a requirement that the lender has stipulated for the approval. This is not the case and you absolutely do not have to purchase any type of extended warranty as a requirement for an auto loan.

What About GAP Insurance Added to My Loan?

GAP insurance covers the difference between what you owe on the vehicle and what it is actually worth. In cases where the amount that you will owe will be more than the market value for the car, GAP insurance can be good to have to protect you from having to come up with that amount should the vehicle be stolen or totalled in a car accident. It is against the law for a dealer to force you to purchase it, so be careful when signing the dotted line and don’t let a dealer pressure you into having it added to your loan contract.