Low interest rates and bad credit auto loans do not always go together but knowing what type of interest you are signing up for can save you money

Where to begin

Until fairly recently customers applying for auto loans for slow credit had few choices when it came to the way the interest rate was computed. We know, because at Auto Credit Express we’ve been working with customers with bad credit at the retail level for over twenty years.

During that time, we’ve personally helped hundreds of retail buyers get financed while helping them avoid a tote the note dealer (buyers outside our area can now fill out a bad credit car loan application on our web site) as well as advising them about bad credit car loans (so they don’t end up in repossession).

It’s also important for applicants to be aware of the fact that in some states there’s more than one way interest rates for auto loans for slow credit can be computed.

Simple

The simple interest loan is the most common type of car loan. With this type of loan, you are charged interest each day on the loan balance. This means that if you make your monthly payment early (for example, on the 2nd of the month instead of the 15th, when iis due), you’ll end up paying less interest, since the daily interest charge, based on the balance per day, will be lower.

In addition, if you decide to pay the loan off early, your interest payments, as well as the overall interest expenses, stop at that time the loan is repaid. The payoff price at that time would include the original price of the car plus the total of the daily interest charges to date, minus the payments made. In other words, there is no penalty if you pay your car off early.

Rule of 78s

The rule of 78′s method is not used as much as it once was and for good reason. With current finance disclosure laws, most people would not sign on the dotted line if the interest charges on their loan were computed using this method.

With rule of 78′s loans, the interest is computed using amortization tables. This determines the amount of interest charged over the loan term which includes an amortized portion of the interest with each payment. Typically this means ¾ of the interest charges are paid during the first ½ of the loan term. If you pay the loan off early, the lender will “rebate” part of the interest, but you’ll still end up paying more than with a simple interest loan.

Check your contract

Congress outlawed the use of “rule of 78′s” for all closed-end (fixed final payment date) loans over 61 months in length in 1992. The following states also outlawed these loans for 60 months and less: Arizona, Delaware, Idaho, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New York, Oregon, South Dakota and Vermont.

If you live in another state, you should know that most conventional lenders now offer only simple interest loans. However, some subprime lenders as well as many tote the note and buy here pay here lots still use the “rule of 78′s” to compute the interest for their auto loans for slow credit.

To avoid signing up for a rule of 78′s loan, be sure to read the finance contract thoroughly. If it has the words “refund” or “rebate of interest” or if the wording in the “prepayment” section states anything other than “no penalty”, it’s not a simple interest contract. You should stay away from this type of loan if at all possible.

As we see it

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their car credit through a nationwide network of affiliate dealers that specialize in second chance auto loans.

So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit auto loan application.

Tags: auto loans for slow credit, Bad Credit, bad credit auto loan, bad credit car loan, rule of 78s, simple interest

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Good credit doesn’t just happen.  Some individuals, who have never had to struggle under the burden of bad credit, might make the illusion of getting good credit look effortless, but that just isn’t the case.

The secret these individuals have learned – perhaps even they are unaware of their secret of how to build good credit for themselves – is that they know how to set and achieve goals.

Effective Goals

Financial goals, like any other goals, are only as effective as they are completed. The number one reason goals remain unattained dreams is due a lack of process, not that the goal itself was somehow faulty or unachievable.

To make certain your money goals are met, you need to qualify them in six different ways:

1. Be specific and realistic.

To be effective, your monetary goals need to be both specific and realistic. The goal to put money in savings is neither of these.  Stating you will save 10% of your salary each month is a much more specific goal, but is it realistic given your circumstances?  Set yourself up for success by being both specific and realistic when creating your goals.

2.  Make it measurable.

How will you know if you are on track if your plan has no built-in measuring quantification?  Knowing you want to pay off your debt does not give you an adequate benchmark for success.  Instead, make a plan that includes deadlines to achieve certain payoff amounts or dollars in savings.

3. Own the goal.

No one ever set or achieved any goal effectively unless it was a reflection of their personal desires and commitment.  Be certain the goals are yours, not your spouse’s, friend’s, or even financial advisor’s.  It is your money and future;  build it to suit you.

4. Set a date.

Nothing is quite as motivating as a deadline. Let’s face it; no one would ever have finished reading To Kill a Mockingbird or Lord of the Flies in middle school if it weren’t for the impending doom of the due date.

Your personal financial goals need to have a deadline for completion as well or they will linger on forever.

5. Get it in writing.

If you had a stranger promising to invest $100 month into a savings plan for you, you’d be a fool not to get it in writing. The same goes for your goals.  An unwritten goal remains a dream.  Write down your goals, and post them for frequent review. This will keep you on target toward getting good credit, learning how to build good credit, and repaying debt or keeping savings needs inline.

6. Rewards are along the way.

You’d think the peace of mind brought on by financial security would be enough of a motivating factor, but let’s face it; going to Tahiti is much more thrilling than looking at account statements.  Be certain to reward yourself as you achieve certain milestones, or you may just burn out.

Perhaps you will start in a different place than your neighbor but once you get started, nothing will stop your well-designed plan for getting good credit by getting out of debt and bad credit repair goals.

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Chase bank has announced that they are offering debt consolidation loans for customers with poor credit or have bad credit scores.

The bank explained that low rates have prompted more borrowing while tight credit has put a hold on credit card debt. Thus, the inability to transfer credit card balances to other cards has prompted an interest in debt consolidation loans.

In fact, Americans are now looking for ways to lower their payments as well as lowering their overall obligation as reports showed that online holiday spending broke records this year, up an estimated 12% compared last year.

Deborah Lucas of the Northwestern University also recommended the consolidation of student loan debt, stating that there are advantages to consolidating student loans right now.

Lucas said that consolidating student loan debt might make sense for some borrowers, especially if a lower fixed rate loan is available. He even advises borrowers to talk to a professional advisor or counselor before making any decisions with student loan debt.

Chase Bank also explained that there are two basic types of debt consolidation loans: the secured and unsecured one. The bank encourages customers to use their home’s equity to replace credit card, auto loan and other high-interest debt for a good option.

Chase also offers a calculator to determine overall savings as borrowers could lower their outstanding interest rate by 7 to 10% or more.

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June is a great time to cut back a little in lifestyle.  No one ever said bad credit repair was fun or easy, but the nicer weather in June takes some of the sting out of cutting back. The holidays are long over, and the outdoor atmosphere is so inviting it makes cheaper forms of entertainment more attractive.

Getting outside where you don’t have to keep up with the Joneses, where cell phone signals don’t matter, and electricity bills are not being bloated is a great way to pass the time, bond with family, and lower your bills at the same time.

July: Fine Tune

The year is half over. It is time to check in with those debt lists. Where are the balances? Remember all this budgeting and cutting back is only going to work if every extra cent you find is applied directly to debt repayment – all while avoiding new debts.

Hopefully, you have been able to completely pay off several of the smallest debts, and the momentum should really be swinging in your favor as each new debt is paid in full.  The repayment amounts just continue to grow as the money is never dispersed to other avenues but,, instead rolls right into the next bill on your list.

August: Negotiations – Again

If you have yet to call your credit card companies and ask for a reduction of interest rates or fee waivers, a settlement amount now is the time to do so.  If you have done this already, it is time to do it again. Credit card companies become much more flexible over time.   Dedicate yourself this month to call and see if you can cut a better deal with your credit card company.

September: Back to School

If you are simply unable to get the credit card companies to budge, look into other options.  Opening a new credit card is only a good move if the balance transfer fee is free and the interest rate is lower significantly than your current cards.

Finding a zero interest, zero balance transfer fee card is ideal. If you can, transfer as many as your credit card balances to this new card as possible, and pay it off without ever placing a single new charge on the account.

October: Save Some Extra for the Winter

Winter holidays take a huge toll on the budget. Prepare now by saving and starting to shop so your purchases will come at the best possible prices.

November: Pay off Checklist

In November it is time to revisit your budget. Is there any more fat on the bone that you could trim? Are you doing all you can to keep your costs low and free up every possible penny to repair bad credit?

Remember, this is your year of self-help credit repair, and the time is running short. Keep up the good work all the way to the end.

December: Stay on Target

If you set enough aside in previous months, you should have a few extra dollars to dedicate to holiday spending. This does not mean you get to go nuts and totally spoil children, grandchildren, spouses or nephews.  You need to stay on target.

Do not put gifts, meals, or any other purchases on credit.  You will never get out of debt by acquiring new debt in moments of weakness.

Each month represents a different skill or process that everyone trying to clean up their debts (and affect self help credit repair) will need to pass through. Some steps might only take you a matter of minutes to complete, while others – like repayment – might occupy several calendar pages before it is completed.

Keeping yourself on track by using your calendar to not only mark the passage of time but also the creation and accomplishment of bad credit repair goals will ensure your building momentum toward ultimate success.

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Bad Credit Unsecured Personal Loans and No Credit Check Payday Loans Cause Money Problems for Many

Posted on | January 19, 2011 | No Comments

With the overall economy greatly struggling over the past three years that comes is very little surprised to see many Americans taking out loans with a bad credit score. Bad credit unsecured personal loans and no credit check payday loans have caused many financial problems for struggling Americans due to the fact that they have high interest rates or fees.

When taking out a bad credit unsecured personal loan most people do not think about an exit strategy when borrowing this. Unfortunately, most people are in a desperate situation when they are looking to borrow money and they are willing to do almost anything to get their hands on a few thousand dollars.

It is often the case that bad credit unsecured personal loans include a credit check process. After analyzing credit most financial institutions will apply an interest rate that is often quite high for poor credit borrowers. It will come as no surprise to see many of these poor credit borrowers receive an interest rate as high as 25% on a personal loan.

A no credit check payday loan is much different and that borrowers will pay upfront fees but an interest rate will not be applied to the money borrowed. The upfront fees are usually between $15 and $35 for every $100 borrowed but it is important to remember that these fees will reset each time a customer receives a paycheck and does not pay the loan off in full.

With this in mind it is imperative to have an exit strategy for a payday loan. By taking out money and not being able to pay it back with ones next paycheck it could be the case that customers end up paying more in fees than the actual loan amount. This has happened all too often in the last several years and it is something that customers do not want to go through.

Author: Tiffany Mann

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If you have bad credit and are thinking of buying a new car in January here are the ten least expensive new cars many with new car incentives that can be used with a bad credit car loan

New cars for bad credit buyers

If you have bad credit you may be thinking of applying for car loans with bad credit and buying a used car. We know, because at Auto Credit Express we’ve been helping poor credit car buyers at the retail level for over two decades.

To help customers outside our retail areas, we even designed a web site that includes a secure bad credit auto loan application. Applicants are then matched with local dealers that, like us, specialize in customer credit issues, giving these customers their best opportunity for second chance auto loans.

The alternative for most bad credit buyers means financing a vehicle from a tote the note car dealer, not much of a choice since these dealers don’t report payments to the credit bureaus. Buying a vehicle from this kind of dealer also increases the chance of repossession.

Credit repair with the right car

Financing a vehicle using auto loans for bad credit means it’s time to consider a small to midsize car to save on interest, insurance and fuel expenses. By financing it for the shortest term possible, you’ll be in a position to re-finance or purchase a different vehicle in a shorter time and at a lower interest rate.

To do this, most bad credit auto loan customers will pick an affordable used car, although there is another option: choosing an entry-level new car.

New cars are more reliable than used cars and new car incentives can not only lower the price but, in some cases, can also help contribute to the down payment requirements of many bad credit lenders.

With nearly two weeks left in January, there is still time (at least on the 2011 models) to take advantage of the following deals on some very affordable new cars:

The top 10 least expensive new cars for January 2011

We’ve taken the time to combine the most affordable new vehicles in the US (most of them 2011 models) with their available rebates to come up with the ten most affordable vehicles for the month of January, 2011. It should be noted that all vehicle prices include destination charges, but not the taxes or official fees that vary by state.

#10 2010 Suzuki SX4
Base price $14,094
January rebate $1,750
Price before taxes $12,344

#9 (tie) – 2011 Nissan Versa 4dr 1.6 base
Base price $11,990
January rebate $0
Price before taxes – $11,900

#9 (tie) 2011 Kia Rio 4dr base
Base price $12,990
January rebate $1000
Price before taxes $11,990

#7 – 2010 Hyundai Accent GS 3dr
Base price $12,715
January rebate $1000
Price before taxes $11,715

#6 – 2011 Chevrolet Aveo5 LS
Base price $12,835
January rebate $1500
Price before taxes $11,385

#5 – 2011 Chevrolet Aveo LS
Base price $12,685
January rebate $1500
Price before taxes $11,185

#4 – 2012 Hyundai Accent base
Base price $10,920
January rebate $0
Price before taxes $10,920

#3 – 2011 Nissan Versa 4dr 1.6 base
Base price $10,740
January rebate $0
Price before taxes – $10,740

#2 – 2010 Hyundai Accent Blue
Base price $10,690
January rebate $500
Price before taxes $10,190

#1 – 2011 Hyundai Accent GL 2dr
Base price $10,705
January rebate $0
Price before taxes $10,705
Imagine getting a new car for under $11,000 before taxes and one of the longest warranties in the business. Since it’s a 2011 model, you shouldn’t have too much of a problem finding one. And its great warranty means you probably won’t need an extended service contract.

As we see it

New car incentives are a great way to not only make a vehicle more affordable, but also may help contribute towards the down payment of a bad credit car loan.

Everyone needs a car. Before you buy a car from a local tote the note car dealer, consider applying for a bad credit auto loan from Auto Credit Express where we specialize in placing customers with bad credit with dealers that can help get them financed.

So why not begin the process of rebuilding your car credit by filling out our online bad credit car loan application now.

Tags: Bad Credit, bad credit auto loan, bad credit car loan, new car incentives

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9 hours ago

NEW YORK (AP) — Americans are starting to get their household finances in order.

In an encouraging round of earnings reports, major banks say fewer mortgages are going bad, credit card defaults are down and more people are paying the bills on time.

One of the nation’s largest consumer lenders, Wells Fargo, said Wednesday that 29 percent fewer loans went bad in the last three months of 2010 than the year before. And late payments on loans considered likely to default declined for the first time since 2008.

Late payments on credit cards issued by Bank of America, JPMorgan Chase and Citigroup also improved at a record pace at the end of last year, according to an analysis by Barclays Capital.

The reports are a sign that Americans are feeling more comfortable about their finances. Personal spending powers about 70 percent of the U.S. economy, and most economists say a fiscally fit consumer is critical to a strong economic recovery.

“There are signs of stability and growth,” said JPMorgan CEO Jamie Dimon.

The bank news comes after a holiday shopping season in which spending was the strongest since 2006, and auto sales grew 11 percent last year, the first gains since 2005.

Taken together, the spending indicators are the “strongest showing for consumers since the peak years of the last expansion,” and signal that the economy is “near a threshold of self-sustaining growth,” analysts at Citi Investment Research & Analysis said in a report earlier this month.

Economists and policymakers are waiting for signs that the economic recovery can power itself rather than rely on outside supports, like the Fed’s decision to buy hundreds of billions of dollars in government bonds to drive down interest rates.

The recent bank results are fueling that optimism.

Citigroup said loan losses fell 11 percent from the previous quarter as more of its customers kept up with payments.

It was the sixth straight quarter of declining losses, allowing the bank to release $2.3 billion from the reserves it sets aside for bad loans and helping it to report a profit. JPMorgan and Wells have also reported bigger profits because they could release loan reserves.

Fewer customers were late on their monthly mortgage payments. The portion of Citi’s home loans that were 90 days overdue fell to 2.1 percent from 2.7 percent. And the bank set aside $4.8 billion for future losses, the lowest since the spring of 2007 and a sign it is more hopeful about the recovery.

Despite the encouraging trends, banks are still reluctant to loosen lending. Credit reporting agency Transunion estimates that 8 million Americans who had credit cards a year ago don’t have them now, either by choice or because they were cut off. Banks slashed credit lines and closed millions of credit card accounts in response to regulations passed after the financial crisis.

Individuals, too, are hesitant to borrow even when they have access to credit. Federal Reserve data show that total revolving debt held by U.S. consumers — mainly credit cards — fell to just below $800 billion in November, the lowest since September 2004.

Each of the three biggest banks — Citi, JPMorgan and Bank of America, which are also the three biggest credit card issuers in the country — reported significant declines in card balances in the fourth quarter.

Banks have been especially reluctant to resume lending to risky customers. The banks gave out millions of subprime loans to people with spotty credit histories in the first half of the 2000s, the primary reason for the collapse of the housing market.

In the economic mess that followed, loan defaults increased sharply for all types of consumer loans — mortgages, home equity loans, and credit cards. Default rates spiked and lenders reported massive losses.

While Americans are spending more and the stock market is at its highest point in more than two years, there are still troubling signs that corporations don’t feel confident enough yet to start hiring again with gusto.

On Wednesday, Goldman Sachs Group Inc., which does business mostly with companies rather than individuals, turned in weak fourth-quarter results. Goldman advises companies on raising cash for business expansion and mergers and acquisitions.

The investment bank’s chief financial officer, David Viniar, said in a conference call that its corporate clients seemed increasingly uncertain as the year progressed. He also said that increasing uncertainty in the world economy made it difficult to predict how confident companies would be in the near future.

“Although there are positive signs in the U.S. economy,” Citigroup CEO Vikram Pandit told analysts and reporters this week, “the housing market has yet to recover. Job creation has been weak.”

(This version CORRECTS Resending to correct bug in byline. With AP Photos.)

Copyright © 2011 The Associated Press. All rights reserved.

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Pierre Money Mart, the leading Seattle bad credit dealership guarantees credit approval to all area auto shoppers.

Seattle, WA — (SBWIRE) — 01/19/2011 — Offering an array of new and used cars from all of the leading automakers, Pierre Money Mart prides itself on assisting Seattle bad credit auto shoppers. They’ll not only help you get into a new vehicle but they’ll also help you get your credit back on track. Pierre Money Mart offers affordable options and a variety of payment plans to suite any financial situation.

Guaranteed Credit Approval

Only at Pierre Money Mart can Seattle bad credit shoppers drive away in a new vehicle while simultaneously rebuilding their credit. With more than 3,000 vehicles to choose from, Pierre Money Mart is the go to dealership for car buyers shopping on a budget or with a rocky credit history. Find cars, trucks, and SUVs from car brands like BMW, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lexus, Mazda, Mitsubishi, Nissan, Scion, Subaru, Toyota, Volkswagen, and more. Pierre Money Mart has even partnered with Cars.com so you can get any vehicle you want – immediately.

Seattle auto shoppers love Pierre Money Mart’s guaranteed credit approval. Your Seattle bad credit dealership can find a car loan for you, even if you have bad credit, slowpays, filed bankruptcy, or have marginal credit. Financing people with bad credit is their specialty. Only auto shoppers living in the state of Washington are eligible for guaranteed credit approval.

Here’s what Seattle bad credit auto shoppers need to receive guaranteed credit approval at Pierre Money Mart:

o Minimum income of $800 a month

o Provide two most-recent paystubs

o Proof of 30 days continuous residency

o A drivers license

o Minimum 15% down payment

o Vehicle’s monthly payment cannot exceed 18% of monthly income

o Have a verified Social Security number

o Have a current bank account

o Completed credit application w/ five references

Visit The Seattle Bad Credit Dealership

All Seattle car shoppers, even Seattle bad credit auto shoppers, should have a safe, reliable car. With so many cars to choose from and credit programs designed to help all drivers rebuild or improve their credit score, Pierre Money Mart provides the best cars and best financing available. Pierre Money Mart is one of the world’s largest special finance car dealerships. Open seven days a week Pierre Money Mart is conveniently located at 12014 Lake City Way NE in Seattle.

To learn more about Pierre Money Mart, the leading Seattle bad credit dealership visit their website http://www.pierremoneymart.com or call 206-455-9535 today.

About Pierre Money Mart
Pierre Money Mart is the top provider of loans for people with bad credit. As a leading Kirkland dealership providing bad credit car loans, Pierre Money Mart is one of the largest special finance car dealerships in the world. Pierre Money Mart has hundreds of cars and trucks to choose from every day and will help car shoppers with bad credit get back on the road.

Contact Pierre Money Mart:
12014 Lake City Way NE
Seattle WA, 98125
206-455-9535

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Todays Lowest FHA Mortgage Rates Bank Refinance Interest Rates for Bad Credit Borrowers Vary Greatly

Posted on | January 18, 2011 | No Comments

As more and more Americans find themselves in bad credit situations it comes as no surprise to see many of these individuals looking for todays lowest FHA mortgage rates. Unfortunately, finding bank refinance interest rates that are very low for bad credit borrowers can be quite difficult as many institutions deem these borrowers risk.

Prior to the subprime mortgage crisis it was rather easy for almost all customers to borrow money for a home loan. Unfortunately, that has greatly changed in 2011 is most financial institutions are being very strict with their lending practices. Rather than allowing everyone to borrow money is the case that most will have to qualify.

Unfortunately, many bad credit borrowers are going to find that todays lowest FHA mortgage rates are much higher than the advertised level seen on TV and the Internet. Most people are currently seeing conventional mortgage rates around 4.6% for the 30 year fixed but this is only an interest rate quote that is available to those who have been strong financial decisions in the recent past.

Taking the time and effort to do a little bit of extra research could prove to be greatly beneficial when it comes to locking in the low mortgage interest rates in January of 2011. With a very bad credit score customers can not expect to receive 30 year fixed interest rates below 5%. Even though this is the case it does not mean that there are not savings to be had by going through the refinance process.

The general rule of thumb is that homeowners should desire to save at least one full percentage point to fully benefit from the current low interest rate environment. By saving this one full percentage point most homeowners will find that they not only cover closing costs but they will also see savings in the very near future.

Author: Mike Garner

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